Pharoah Company wishes to liquidate the firm by distributing the company’s cash to the three partners. Prior
Question:
Pharoah Company wishes to liquidate the firm by distributing the company’s cash to the three partners. Prior to the distribution of cash, the company’s balances are Cash $69,600; Oakley, Capital (Cr.) $48,100; Quaney, Capital (Dr.) $19,740; and Ellis, Capital (Cr.) $41,240. The income ratios of the three partners are 3 : 4 : 3, respectively.
Prepare the entry to record the absorption of Quaney’s capital deficiency by the other partners and the distribution of cash to the partners with credit balances. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Account Titles and Explanation | Debit | Credit |
---|---|---|
enter a debit amount | enter a credit amount | |
enter a debit amount | enter a credit amount | |
enter a debit amount | enter a credit amount | |
(To record write-off of capital deficiency) | ||
enter a debit amount | enter a credit amount | |
enter a debit amount | enter a credit amount | |
select an account title to record distribution of cash to the partners | enter a debit amount | enter a credit amount |
(To record distribution of cash to the partners) |
Accounting Principles
ISBN: 978-1118342190
11th Edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso