Alex and Bess have been in partnership for many years. The partners, who share profits and...
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Alex and Bess have been in partnership for many years. The partners, who share profits and losses on a 60:40 basis, respectively, wish to retire and have agreed to liquidate the business. Liquidation expenses are estimated to be $6,500. At the date the partnership ceases operations, the balance sheet is as follows: Cash Noncash assets $ 53,000 120,000 Liabilities Alex, capital Bess, capital $ 41,500 72,000 59,500 Total assets $ 173,000 Total liabilities and capital $ 173,000 Required: Part A: Prepare journal entries for the following transactions that occurred in chronological order: a. Distributed safe cash payments to the partners. b. Paid $24,900 of the partnership's liabilities. c. Sold noncash assets for $131,500. d. Distributed safe cash payments to the partners. e. Paid remaining partnership liabilities of $16,600. f. Paid $5,200 in liquidation expenses; no further expenses will be incurred. g. Distributed remaining cash held by the business to the partners. Part B: Prepare a final statement of partnership liquidation. Complete this question by entering your answers in the tabs below. Part A Part B Prepare journal entries for the following transactions that occurred in chronological order: Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 2 3 4 5 6 7 Distributed safe cash payments to the partners. Note: Enter debits before credits. Transaction a. General Journal Debit Credit Alex and Bess have been in partnership for many years. The partners, who share profits and losses on a 60:40 basis, respectively, wish to retire and have agreed to liquidate the business. Liquidation expenses are estimated to be $6,500. At the date the partnership ceases operations, the balance sheet is as follows: Cash Noncash assets $ 53,000 120,000 Liabilities Alex, capital Bess, capital $ 41,500 72,000 59,500 Total assets $ 173,000 Total liabilities and capital $ 173,000 Required: Part A: Prepare journal entries for the following transactions that occurred in chronological order: a. Distributed safe cash payments to the partners. b. Paid $24,900 of the partnership's liabilities. c. Sold noncash assets for $131,500. d. Distributed safe cash payments to the partners. e. Paid remaining partnership liabilities of $16,600. f. Paid $5,200 in liquidation expenses; no further expenses will be incurred. g. Distributed remaining cash held by the business to the partners. Part B: Prepare a final statement of partnership liquidation. Complete this question by entering your answers in the tabs below. Part A Part B Prepare journal entries for the following transactions that occurred in chronological order: Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 2 3 4 5 6 7 Distributed safe cash payments to the partners. Note: Enter debits before credits. Transaction a. General Journal Debit Credit
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Answer rating: 100% (QA)
a Distributed safe cash payments to the partners Debit Alex Capital 72000 6... View the full answer
Related Book For
Advanced Accounting
ISBN: 9781260247824
14th Edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
Posted Date:
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