Data for Wenyou Company are presented in E12.8. Wenyou Company now decides to liquidate the partnership. Instructions

Question:

Data for Wenyou Company are presented in E12.8. Wenyou Company now decides to liquidate the partnership.

Instructions
Prepare the entries to record:
a. The sale of non-cash assets.
b. The allocation of the gain or loss on realization to the partners.
c. Payment of creditors.
d. Distribution of cash to the partners.

Data From Exercise 8

Wenyou Company at December 31 has (amounts in thousands) cash ¥20,000, non-cash assets ¥100,000, liabilities ¥55,000, and the following capital balances: Wen ¥45,000 and You ¥20,000. The firm is liquidated, and ¥105,000 in cash is received for the non-cash assets. Wen and You income ratios are 60% and 40%, respectively.

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...

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