Due to the fact that the partnership had been unprofitable for the past several years, A,...
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Due to the fact that the partnership had been unprofitable for the past several years, A, B, and C decided to liquidate their partnership. The partners share profits and losses in the ratio of 40:30:30, respectively. All of the partnership's other assets are sold for $100,000 cash. The following balance sheet was prepared immediately before the liquidation process began: Liabilities Cash Other Assets $ 100,000 350,000 $250,000 55,000 Total Assets A B C A, Capital B, Capital C, Capital Total Liabilities & Equities $450.000 $450.000 The personal status of each partner is as follows: Personal Assets $185,000 100,000 180,000 Personal Liabilities $120,000 140,000 170,000 60,000 85.000 Required: A. Prepare a liquidation worksheet to determine the amount of cash to be distributed to each partner. Assume that a partner makes additional contributions to the partnership when appropriate based on their individual status. 8. Prepare all journal entries necessary in the liquidation process. Due to the fact that the partnership had been unprofitable for the past several years, A, B, and C decided to liquidate their partnership. The partners share profits and losses in the ratio of 40:30:30, respectively. All of the partnership's other assets are sold for $100,000 cash. The following balance sheet was prepared immediately before the liquidation process began: Liabilities Cash Other Assets $ 100,000 350,000 $250,000 55,000 Total Assets A B C A, Capital B, Capital C, Capital Total Liabilities & Equities $450.000 $450.000 The personal status of each partner is as follows: Personal Assets $185,000 100,000 180,000 Personal Liabilities $120,000 140,000 170,000 60,000 85.000 Required: A. Prepare a liquidation worksheet to determine the amount of cash to be distributed to each partner. Assume that a partner makes additional contributions to the partnership when appropriate based on their individual status. 8. Prepare all journal entries necessary in the liquidation process.
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Loss on Sale 1 Cash Bank all podionil To Other Assets 11 JOURNAL ENTRIES iv As Cap... View the full answer
Related Book For
Advanced Accounting
ISBN: 978-0538480284
11th edition
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng
Posted Date:
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