The following statement of financial position is for the partnership of Able, Brown, and Crown at...

  

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The following statement of financial position is for the partnership of Able, Brown, and Crown at November 1, 2018. Assets Liabilities Cash $ 20,000 Accounts payable $ 50,000 Other assets 180,000 Partners' Capital Able, capital $37,000 Brown, capital 65,000 Crown, capital 48,000 150,000 $200,000 $200,000 CHAPTER TWELVE /Proprietorships and Partnerships The profit and loss sharing ratio is Able 40%; Brown: 40%, and Crown: 20%. The partnership is dissolved and liquidated during November by selling the other assets for $100,000 and paying off the creditors. Required: 1. Prepare a schedule of partnership liquidation for the month ending November 30, 2018. Assume any capital deficiency is absorbed by the other partners. 2. Prepare the journal entries to record the dissolution. Replace xxx into your answers showing in red color (20) CP 12-5 1. Able, Brown, and Crown Statement of xxx For the Month Ending November 30, 2018 Other xxx assets XXXX Pxxx'capital Able Brown Crown Balance, November 1, 2018 $ 20,000 $180,000 $50,000 $xxx $xxx $xxx Sale of other assets and 100,000 (180,000) xxx of loss ($80,000) (32,000) (32,000) (16,000) 120,000 $ -0- 50,000 5,000 33,000 32,000 Payment of liabilities (XXX) (50,000) 70,000 $ -0- Dxxx of cash (70,000) Balance, November 30, 2018 $ -0- (XXX) $ -0- (XXX) (32,000) $ -0- $ -0- 2. a. Loss on Sale of Other Assets XXX Cash 100,000 Other Assets 180,000 To record sale of other assets for cash. b. Able, Capital XXX Brown, Capital XXX Crown, Capital XXX Loss on Sale of Other Assets 80,000 To allocate loss on sale of other assets. C. Accounts Payable Cash 50,000 50,000 To record the payment of liabilities. d. Able, Capital XXX Brown, Capital XXX Crown, Capital XXX Cash 70,000 To record payment of capital accounts. The following statement of financial position is for the partnership of Able, Brown, and Crown at November 1, 2018. Assets Liabilities Cash $ 20,000 Accounts payable $ 50,000 Other assets 180,000 Partners' Capital Able, capital $37,000 Brown, capital 65,000 Crown, capital 48,000 150,000 $200,000 $200,000 CHAPTER TWELVE /Proprietorships and Partnerships The profit and loss sharing ratio is Able 40%; Brown: 40%, and Crown: 20%. The partnership is dissolved and liquidated during November by selling the other assets for $100,000 and paying off the creditors. Required: 1. Prepare a schedule of partnership liquidation for the month ending November 30, 2018. Assume any capital deficiency is absorbed by the other partners. 2. Prepare the journal entries to record the dissolution. Replace xxx into your answers showing in red color (20) CP 12-5 1. Able, Brown, and Crown Statement of xxx For the Month Ending November 30, 2018 Other xxx assets XXXX Pxxx'capital Able Brown Crown Balance, November 1, 2018 $ 20,000 $180,000 $50,000 $xxx $xxx $xxx Sale of other assets and 100,000 (180,000) xxx of loss ($80,000) (32,000) (32,000) (16,000) 120,000 $ -0- 50,000 5,000 33,000 32,000 Payment of liabilities (XXX) (50,000) 70,000 $ -0- Dxxx of cash (70,000) Balance, November 30, 2018 $ -0- (XXX) $ -0- (XXX) (32,000) $ -0- $ -0- 2. a. Loss on Sale of Other Assets XXX Cash 100,000 Other Assets 180,000 To record sale of other assets for cash. b. Able, Capital XXX Brown, Capital XXX Crown, Capital XXX Loss on Sale of Other Assets 80,000 To allocate loss on sale of other assets. C. Accounts Payable Cash 50,000 50,000 To record the payment of liabilities. d. Able, Capital XXX Brown, Capital XXX Crown, Capital XXX Cash 70,000 To record payment of capital accounts.