Question: Please help me with the journal entries in part B, thank you. The partnership of Wingler, Norris, Rodgers, and Guthrie was formed several years ago
Please help me with the journal entries in part B, thank you.
The partnership of Wingler, Norris, Rodgers, and Guthrie was formed several years ago as a local architectural firm. Several partners have recently undergone personal financial problems and have decided to terminate operations and liquidate the business. The following balance sheet is drawn up as a guideline for this process:
| Cash | $ | 37,000 | Liabilities | $ | 68,000 |
| Accounts receivable | 104,000 | Rodgers, loan | 57,000 | ||
| Inventory | 123,000 | Wingler, capital (30%) | 153,000 | ||
| Land | 96,000 | Norris, capital (10%) | 110,000 | ||
| Building and equipment (net) | 179,000 | Rodgers, capital (20%) | 85,000 | ||
| Guthrie, capital (40%) | 66,000 | ||||
| Total assets | $ | 539,000 | Total liabilities and capital | $ | 539,000 |
When the liquidation commenced, liquidation expenses of $21,000 were anticipated as being necessary to dispose of all property.
Part A
Prepare a predistribution plan for this partnership.
Part B
The following transactions transpire during the liquidation of the Wingler, Norris, Rodgers, and Guthrie partnership:
- Collected 85 percent of the total accounts receivable with the rest judged to be uncollectible.
- Sold the land, building, and equipment for $161,000.
- Distributed safe payments of cash.
- Learned that Guthrie, who has become personally insolvent, will make no further contributions.
- Paid all liabilities.
- Sold all inventory for $78,000.
- Distributed safe payments of cash again.
- Paid actual liquidation expenses of $12,000 only.
- Made final cash disbursements to the partners based on the assumption that all partners other than Guthrie are personally solvent.
Prepare journal entries to record these liquidation transactions.
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o Transaction General Journal Debit Credit 1 01 Cashselected answer correct 88,400selected answer correct not attempted Wingler, Capitalselected answer correct 4,680selected answer correct not attempted Norris, Capitalselected answer correct 1,560selected answer correct not attempted Rodgers, Capitalselected answer correct 3,120selected answer correct not attempted Guthrie, Capitalselected answer correct 6,240selected answer correct not attempted Accounts receivableselected answer correct not attempted 104,000selected answer correct 2 02 Cashselected answer correct 161,000selected answer correct not attempted Wingler, Capitalselected answer correct 34,200selected answer correct not attempted Norris, Capitalselected answer correct 11,400selected answer correct not attempted Rodgers, Capitalselected answer correct 22,800selected answer correct not attempted Guthrie, Capitalselected answer correct 45,600selected answer correct not attempted Landselected answer correct not attempted 96,000selected answer correct Building and equipmentselected answer correct not attempted 179,000selected answer correct 3 03 Wingler, Capitalselected answer correct not attempted not attempted Norris, Capitalselected answer correct not attempted not attempted Rodgers, Capitalselected answer correct not attempted not attempted Rodgers, Loanselected answer correct not attempted not attempted Cashselected answer correct not attempted not attempted 4 04 No journal entry requiredselected answer correct not attempted not attempted 5 05 Liabilitiesselected answer correct not attempted not attempted Cashselected answer correct not attempted not attempted 6 06 Cashselected answer correct not attempted not attempted Wingler, Capitalselected answer correct not attempted not attempted Norris, Capitalselected answer correct not attempted not attempted Rodgers, Capitalselected answer correct not attempted not attempted Guthrie, Capitalselected answer correct not attempted not attempted Inventoryselected answer correct not attempted not attempted 7 07 Wingler, Capitalselected answer correct not attempted not attempted Norris, Capitalselected answer correct not attempted not attempted Rodgers, Capitalselected answer correct not attempted not attempted Cashselected answer correct not attempted not attempted 8 08 Wingler, Capitalselected answer correct not attempted not attempted Norris, Capitalselected answer correct not attempted not attempted Rodgers, Capitalselected answer correct not attempted not attempted Guthrie, Capitalselected answer correct not attempted not attempted Cashselected answer correct not attempted not attempted 9 9.a Wingler, Capitalselected answer correct not attempted not attempted Norris, Capitalselected answer correct not attempted not attempted Rodgers, Capitalselected answer correct not attempted not attempted Guthrie, Capitalselected answer correct not attempted not attempted 10 9.b Wingler, Capitalselected answer correct not attempted not attempted Norris, Capitalselected answer correct not attempted not attempted Rodgers, Capitalselected answer correct not attempted not attempted Cash
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