The Discount Partnership is being liquidated. The current balance sheet is shown here. Discount Partnership Balance Sheet

Question:

The Discount is being liquidated. The current is shown here.
Discount Sheet
January 14, 2008
Assets .
Cash .............. $ 25,000
Other assets ............. 120,000
Total assets ............ $145,000
Liabilities and Partners’ Equity
Accounts payable ......... $ 40,000
Dawson, capital ........... 31,000
Feeney, capital ........... 65,000
Hardin, capital ............ 9,000
Total liabilities and partners’ equity .. $145,000

Dawson, Feeney, and Hardin share profits and losses in a 30:40:30 ratio.

Required:
A. Prepare a schedule of for each of the following three independent cases.
(1) The noncash assets are sold for $60,000, and any partner with a deficit is unable to eliminate any of the deficit.
(2) The noncash assets are sold for $60,000, and any partner with a deficit is able to invest cash equal to the amount of the deficit.
(3) The noncash assets are sold for $50,000, and any partner with a deficit is able to invest up to $8,000 cash in the Prepare all necessary journal entries for case 2 above.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Liquidation
Liquidation in finance and economics is the process of bringing a business to an end and distributing its assets to claimants. It is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations when they are due.... Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...