2022 January 1-The partners decide to liquidate the partnership. They have the following balances: Cash $93,667 Accounts Receivable $4 500 Equipment $ 46,250 Accumulated Depreciation $ 25 000 Accounts Payable $4417 The partners were able to collect $3 500 of the accounts receivable and sell the equipment for $57,250
2022 January 1-The partners decide to liquidate the partnership. They have the following balances: Cash $93,667 Accounts Receivable $4 500 Equipment $ 46,250 Accumulated Depreciation $ 25 000 Accounts Payable $4417 The partners were able to collect $3 500 of the accounts receivable and sell the equipment for $57,250
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter19: Accounting For Partnerships
Section: Chapter Questions
Problem 9SPA
Related questions
Question
![2022
January 1- The partners decide to liquidate the partnership. They have the following balances:
Cash $93,667
Accounts Receivable $4 500
Equipment $ 46,250
Accumulated Depreciation $ 25 000
Accounts Payable $4417
The partners were able to collect $3 500 of the accounts receivable and sell the equipment for $57,250
a) Record all journal entries to dissolve the partnership in the following order.
i) Record the collection of the A/R and sale of the equipment. You need to close out the A/R, Equipment
and Accumulated Amortization Accounts. There will be either a Gain on Disposal or Loss on
Disposal of Assets account needed to balance the journal entry.
ii) Allocate the Gain or Loss on Disposal to the two partners capital accounts.
iii) Pay off any outstanding liabilities.
iv) Pay out the Capital balances to the remaining partners from the Bank account.
Do the balance sheet on the left to help you determine the new Bank balance
and the final Capital balances.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8eacdd83-66f5-4129-8b02-0ceea06fa5f5%2F9c02eb27-d22a-4433-8c13-a4a0564f8c17%2F47yfg9i_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2022
January 1- The partners decide to liquidate the partnership. They have the following balances:
Cash $93,667
Accounts Receivable $4 500
Equipment $ 46,250
Accumulated Depreciation $ 25 000
Accounts Payable $4417
The partners were able to collect $3 500 of the accounts receivable and sell the equipment for $57,250
a) Record all journal entries to dissolve the partnership in the following order.
i) Record the collection of the A/R and sale of the equipment. You need to close out the A/R, Equipment
and Accumulated Amortization Accounts. There will be either a Gain on Disposal or Loss on
Disposal of Assets account needed to balance the journal entry.
ii) Allocate the Gain or Loss on Disposal to the two partners capital accounts.
iii) Pay off any outstanding liabilities.
iv) Pay out the Capital balances to the remaining partners from the Bank account.
Do the balance sheet on the left to help you determine the new Bank balance
and the final Capital balances.
![Jan
2022
11
Balance Sheet
Assets
Cash
Equipment
Accumulated Amortization
A/R
Liabilities & Equity
Accounts Payable
Brady, Capital
McNabb, Capital
Before Liq
After Liq](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8eacdd83-66f5-4129-8b02-0ceea06fa5f5%2F9c02eb27-d22a-4433-8c13-a4a0564f8c17%2Flcghr4p_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Jan
2022
11
Balance Sheet
Assets
Cash
Equipment
Accumulated Amortization
A/R
Liabilities & Equity
Accounts Payable
Brady, Capital
McNabb, Capital
Before Liq
After Liq
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