Homework Help is Here – Start Your Trial Now!
Business
Accounting
45. ABCD's balance sheet before liquidation shows the following figures. In $ Activities 90,000 Liabilities 20,000 Loans A = 5,000 Capital A = 20,000 Capital B = 20,000 Capital C = 20,000 Capital D = 5,000 A, B, C, D share their respective profits in a 2: 1 1 1 ratio. Certain assets are sold for $35,000. The creditors were paid in full, the partners were paid $10,000, and a cash sum of $5,000 was withheld pending future developments.

45. ABCD's balance sheet before liquidation shows the following figures. In $ Activities 90,000 Liabilities 20,000 Loans A = 5,000 Capital A = 20,000 Capital B = 20,000 Capital C = 20,000 Capital D = 5,000 A, B, C, D share their respective profits in a 2: 1 1 1 ratio. Certain assets are sold for $35,000. The creditors were paid in full, the partners were paid $10,000, and a cash sum of $5,000 was withheld pending future developments.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
45. ABCD's balance sheet before liquidation shows the following figures: In $ Activities 90,000 Liabilities 20,000 Loans A = 5,000 Capital A = 20,000 Capital B = 20,000 Capital C = 20,000 Capital D= 5,000 A, B, C, D share their respective profits in a 2:1:1:1 ratio Certain assets are sold for $35,000 The creditors were paid in full, the partners were paid $10,000, and a cash sum of $5,000 was withheld pending future developments. Prepare the journal entries needed to record the above tra of cash to partners. tions Includes the distribution
Transcribed Image Text:45. ABCD's balance sheet before liquidation shows the following figures: In $ Activities 90,000 Liabilities 20,000 Loans A = 5,000 Capital A = 20,000 Capital B = 20,000 Capital C = 20,000 Capital D= 5,000 A, B, C, D share their respective profits in a 2:1:1:1 ratio Certain assets are sold for $35,000 The creditors were paid in full, the partners were paid $10,000, and a cash sum of $5,000 was withheld pending future developments. Prepare the journal entries needed to record the above tra of cash to partners. tions Includes the distribution
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS