Question: I am having problems calculating Cook and Argo Capital and Cash for the journal entry. Can you help me with these calculations? I was able
I am having problems calculating Cook and Argo Capital and Cash for the journal entry. Can you help me with these calculations? I was able to get the first journal entry, but I do not know how to get the following where the xxx's are:
Cook, Capital xxx
Argo, Capital xxx
Cash xxx
The CPA Partnership operated by Cook, Parks, and Argo is being liquidated. A balance sheet prepared at this stage in their liquidation process is presented below.
Cash
$42,000
Liabilities
$24,000Other Assets
49,000
Parks, Loan
10,000
Cook, Capital
32,000
Parks, Capital
11,000
Argo, Capital
14,000
Total
$91,000
Total
$91,000
The partners share profits and losses 30% (Cook), 50% (Parks), and 20% (Argo). The partners are all personally insolvent.
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