The partners of Donald, Chief & Berry LLP decided to liquidate on August 1, 2019. The balance
Question:
The partners of Donald, Chief & Berry LLP decided to liquidate on August 1, 2019. The balance sheet of the partnership is as follows, with the profit and loss ratio of 25%, 45%, and 30%, respectively.
DONALD, CHIEF AND BERRY LLP
Balance Sheet
August 1, 2019
Assets | Liabilities | ||
Cash | 80000 | Accounts Payable | 130000 |
Accounts Receivable | 40000 | Bank Loans | 60000 |
PPE | 500000 | Donald, Capital | 140000 |
Chief, Capital | 160000 | ||
Berry, Capital | 130000 |
The Accounts receivables were collected for 30000 cash on August 30, 2019. The PPE was sold for 550000 cash on Dec. 1, 2019. All debts were paid in full amounts on Dec. 15, 2019. The remaining cash was distributed to the partners on Dec. 16, 2019. Prepare the journal entries for collection of A/R, the sales of PPE, payment of A/P and bank loans and the final distribution of cash to the partners.
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker