Account balances December 31, 2023 Due to several unprofitable periods, the partners decided to liquidate the partnership. The equipment was sold for $67,000 on Janua , 2024. The partners share any profit (loss) in the ratio of 2:1:1 for Wallace, Dunn, and Lin, respectively. Account balances December 31, 2023 Sale of equipment Cash $36,100 Required: 1. Complete the schedule. (Negative answers should be indicated by a minus sign.) Balance Payment of liabilities Balance Accum. David Olena Danny Lin, Deprec. Accounts Notes Wallace, Dunn, Equipment Equipment Payable Payable Capital Capital Capital $185,000 $100,000 $8,100 $23,000 $42,000 $25,000 $23,000 Cash Accum. Deprec. Equipment Accounts Notes Payable Payable David Wallace, Capital $36,100 $ 185,000 $ 100,000 $ 8,100 $ 23,000 $ 42,000 $ Equipment Olena Dunn, Capital 25,000

Account balances December 31, 2023 Due to several unprofitable periods, the partners decided to liquidate the partnership. The equipment was sold for $67,000 on Janua , 2024. The partners share any profit (loss) in the ratio of 2:1:1 for Wallace, Dunn, and Lin, respectively. Account balances December 31, 2023 Sale of equipment Cash $36,100 Required: 1. Complete the schedule. (Negative answers should be indicated by a minus sign.) Balance Payment of liabilities Balance Accum. David Olena Danny Lin, Deprec. Accounts Notes Wallace, Dunn, Equipment Equipment Payable Payable Capital Capital Capital $185,000 $100,000 $8,100 $23,000 $42,000 $25,000 $23,000 Cash Accum. Deprec. Equipment Accounts Notes Payable Payable David Wallace, Capital $36,100 $ 185,000 $ 100,000 $ 8,100 $ 23,000 $ 42,000 $ Equipment Olena Dunn, Capital 25,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On January 1, the partners of Van, Bakel, and Cox (who share profits and losses in the ratio of 5:3:2, respectively) decide to terminate operations and liquidate their partnership. The trial balance at this date follows: Cash Accounts receivable Inventory Machinery and equipment, net Van, loan Accounts payable Bakel, loan Van, capital Bakel, capital Cox, capital Totals February $ March Debit 36,000 102,000 88,000 225,000 66,000 $ Credit 95,000 56,000 The partners plan a program of piecemeal conversion of the partnership's assets to minimize liquidation losses. All available cash, less an amount retained to provide for future expenses, is to be distributed to the partners at the end of each month. A summary of the liquidation transactions follows: January 166,000 108,000 92,000 $ 517,000 $ 517,000 Collected $69,000 of the accounts receivable; the balance is deemed uncollectible. Received $56,000 for the entire inventory. Paid $4,000 in liquidation expenses. Paid $90,000 to the outside…
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