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, 2023. The balance sheet appeared as follows on the date of liquidation:

Required

Prepare the entries on March 31, 2023, 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, 2023 Assets Cash.......... Property, plant, and equipment.... Less: Accumulated depreciation... Total assets....... Liabilities Accounts payable........ Equity Leslie Bjorn, capital....... Jason Douglas, capital... Tom Pierce, capital... Total equity.............. Total liabilities and equity... $ 47,400 $233,400 128,400 105,000 $152,400 $ 27,600 $55,200 63,600 6,000 124,800 $152,400