Radcliffe, Sonders, and Towers, who share in income and losses in the ratio of 2:3:5, decided to discontinue operations as of April 30 and liquidate their partnership. After the accounts were closed on April 30, the following trial balance was prepared:

Cash	5,900
Noncash Assets	109,900
Liabilities		26,800
Radcliffe, Capital		14,600
Sonders, Capital		27,900
Towers, Capital		46,500
	115,800	115,800

Between May 1 and May 18, the noncash assets were sold for $27,400, and the liabilities were paid.

Instructions

1. Assuming that the partner with the capital deficiency pays the entire amount owed to the partnership, prepare a statement of partnership liquidation.

2. Journalize the entries to record (a) the sale of the assets, (b) the division of loss on the sale of the assets, (c) the payment of the liabilities, (d) the receipt of the deficiency, and (e) the distribution of cash to the partners.

Answer rating: 100% (QA)

1 Radcliff Sonders and Towers Statement of Partnership Liquidation For Period May 118 2008 Capital N... View the full answer