Nicholas Jay, Kamla Paul, and Stephanie Ram plan to liquidate their partnership. They have always shared...

Transcribed Image Text:

Nicholas Jay, Kamla Paul, and Stephanie Ram plan to liquidate their partnership. They have always shared losses and gains in a 1:4:5 ratio, and on the day of the liquidation their balance sheet appeared as follows: The Jaijairam Company Balance Sheet December 20, 2016 Assets Liabilities and Owners' Equity Cash $73,000 Notes Payable $93,000 Land 194,000 Nicholas Jay, Capital 70,000 Buildings 182,000 Kamla Paul, Capital 205,000 Stephanie Ram, Capital 81,000 Total Assets $449,000 Total Liabilities & Owners' Equity $449,000 Under the following four independent assumptions, prepare the journal entries for the sale of the "land" and "buildings", allocation of any loss or gain, any deficit(s), the payment of the liability, and the distributions to the partners, if: 1) The "Land" and "Buildings" were sold for $406,000. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Do not use dollar signs ($) when entering amounts. To see comma-formatted numbers reflected in your final answers, you must enter your answers with commas. Round answers to 2 decimal places, e.g. 5,275.25.) Date Account Titles and Explanation 2016 Debit Credit Nicholas Jay, Kamla Paul, and Stephanie Ram plan to liquidate their partnership. They have always shared losses and gains in a 1:4:5 ratio, and on the day of the liquidation their balance sheet appeared as follows: The Jaijairam Company Balance Sheet December 20, 2016 Assets Liabilities and Owners' Equity Cash $73,000 Notes Payable $93,000 Land 194,000 Nicholas Jay, Capital 70,000 Buildings 182,000 Kamla Paul, Capital 205,000 Stephanie Ram, Capital 81,000 Total Assets $449,000 Total Liabilities & Owners' Equity $449,000 Under the following four independent assumptions, prepare the journal entries for the sale of the "land" and "buildings", allocation of any loss or gain, any deficit(s), the payment of the liability, and the distributions to the partners, if: 1) The "Land" and "Buildings" were sold for $406,000. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Do not use dollar signs ($) when entering amounts. To see comma-formatted numbers reflected in your final answers, you must enter your answers with commas. Round answers to 2 decimal places, e.g. 5,275.25.) Date Account Titles and Explanation 2016 Debit Credit

Answer rating: 100% (QA)

to calculate each partners share in the liquidation ... View the full answer