Leslie Bjorn, Jason Douglas, and Tom Pierce have an architect firm and share profit(losses) in a 3:1:1 ratio. They decide to liquidate their partnership on March 31, 2020. The balance sheet appeared as follows on the date of liquidation:

Required Prepare the entries on March 31, 2020, to record the liquidation under each of the following independent assumptions:

a. Property, plant, and equipment is sold for $270,000.

b. Property, plant, and equipment is sold for $66,000.

Assume that any deficiencies are paid by the partners.

Transcribed Image Text:

BDP Architects Balance Sheet March 31, 2020 Liabilities Accounts payable. Equity Leslie Bjorn, capital. Jason Douglas, capital. Tom Pierce, capital.. Total equity. Total liabilities and equity. Assets Cash. $ 47,400 $ 27,600 Property, plant, and equipment. Less: Accumulated depreciation. $233,400 128,400 105,000 $5,200 Total assets. $152,400 63,600 6,000 124,800 $152,400