1. Prepare a statement of partnership liquidation, indicating (a) the sale of assets and division of loss, (b) the payment of liabilities, (c) the receipt of the deficiency (from the appropriate partner), and (d) the distribution of cash.

Enter any balance deficiencies as negative numbers using a minus sign. If an amount is zero or a blank, enter in 0.

Cash+ Noncash Assets =Liabilities +Harken, Capital +Sedlacek,Capital +Eldridge,Capital
$7,800 $61,400 $8,000 $31,000 $5,700 $24,500
Balances before realization
Sale of assets and division of loss
Balances after realization
Payment of liabilities
Balances after payment of liabilities
Receipt of deficiency
Balances
Cash distributed to partners
Final balances

2. Assume the partner with the capital deficiency declares bankruptcy and is unable to pay the deficiency.

a. Journalize the entries to allocate the partner's deficiency. If an amount box does not require an entry, leave it blank.


b. Journalize the entries to distribute the remaining cash. If an amount box does not require an entry, leave it blank.

Answer rating: 100% (QA)

I think you have missing information about sale of noncash assets To solve this I assume it to be 32600 and Income sharing ratio that has been assumed ... View the full answer