After several years of operations, the partnership of Leonard, M

After several years of operations, the partnership of Leonard, Mitchell, and Swanson is to be liquidated. After making closing entries on June 30, 20--, the following accounts remain open:


Account Balance Debit Account Title Credit $ 4,000 40,000 Cash Inventory Other Assets Liabilities 150,000 $44,000 60,000


The noncash assets are sold for $211,000. Profits and losses are shared equally.
REQUIRED
1. Prepare a statement of partnership liquidation for the period July 1–20, 20--, showing the following:
(a) The sale of noncash assets on July 1
(b) The allocation of any gain or loss to the partners on July 1
(c) The payment of the liabilities on July 15
(d) The distribution of cash to the partners on July 20
2. Journalize these four transactions in a generaljournal.

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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...

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