ABC is a partnership owned by Adams, Buxton, and Carlson, who share profits and losses in the ratio of 3:1:4, respectively. The account balances of the partnership at June 30 follow:

ABC

Adjusted Trial Balance

June 30, 2018

Requirements
1. Prepare the June 30 entries to close the revenue, expense, income summary, and withdrawal accounts.
2. Open each partner's capital T-account with the adjusted balance, post the closing entries to their accounts, and determine each partner's ending capital balance.
3. Prepare the June 30 entries to liquidate the partnership assuming the non-cash assets are sold for $116,000?

Transcribed Image Text:

Balance Account Title Debit Credit S 25,000 Cash Non-cash Assets 114,000 $ 30,000 Notes Payable 25,000 Adams, Capital 45,000 Buxton, Capital 55,000 Carlson, Capital Adams, Withdrawals 12,000 Buxton, Withdrawals 29,000 Carlson, Withdrawals 52,000 163,000 Service Revenue Salaries Expense 68,000 Rent Expense 18,000 $ 318,000 $ 318,000 Total