PLEASE ANSWER ALL WITH COMPLETE AND CORRECT WORKING THANKS 1 Record the inıtial distribution of available cash based on safe capital balance.2 Record the payment of the partnership's liabilities.3 Record the sale of noncash assets.4 Record the entry to distribute safe cash payments to the partners.5 Record the payment of all remaining partnership liabilities.6 Record the payment of liquidation expenses.7 Record the entry to distribute remaining cash held by the business to the partners. Alex and Bess have been in partnership for many years. The partners, who share profits and losses on a 70:30 basis, respectively, wishto retire and have agreed to liquidate the business. Liquidation expenses are estimated to be $6,500. At the date the partnershipceases operations, the balance sheet is as follows:CashNoncash assetsTotal assetsLiabilitiesAlex, capitalBess, capital$ 305,000 Total liabilities and capital$ 65,000240,000Part A: Prepare journal entries for the following transactions that occurred in chronological order:a. Distributed safe cash payments to the partners.b. Paid $28,500 of the partnership's liabilities.c. Sold noncash assets for $257,500.$ 47,500168,00089,500$ 305,000d. Distributed safe cash payments to the partners.e. Paid remaining partnership liabilities of $19,000.f. Paid $5,100 in liquidation expenses; no further expenses will be incurred.g. Distributed remaining cash held by the business to the partners. Part B: Prepare a final statement of partnership liquidation.Complete this question by entering your answers in the tabs below.Required A Required BPrepare journal entries for the following transactions that occurred in chronological order: (Do not round intermediate calculations. If noentry is required for a transaction/event, select "No journal entry required" in the first account field.)a. Distributed safe cash payments to the partners.b. Paid $28,500 of the partnership's liabilities.c. Sold noncash assets for $257,500.d. Distributed safe cash payments to the partners.e. Paid remaining partnership liabilities of $19,000.f. Paid $5,100 in liquidation expenses; no further expenses will be incurred.g. Distributed remaining cash held by the business to the partners.

a. Distributed safe cash payments to the partners. Alex, Capital $117,600 (168,000 x 70%) Bess,…

Answered: Alex and Bess have been in partnership…

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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PLEASE ANSWER ALL WITH COMPLETE AND CORRECT WORKING THANKS

1 Record the inıtial distribution of available cash based on safe capital balance.

2 Record the payment of the partnership's liabilities.

3 Record the sale of noncash assets.

4 Record the entry to distribute safe cash payments to the partners.

5 Record the payment of all remaining partnership liabilities.

6 Record the payment of liquidation expenses.

7 Record the entry to distribute remaining cash held by the business to the partners.

Alex and Bess have been in partnership for many years. The partners, who share profits and losses on a 70:30 basis, respectively, wish
to retire and have agreed to liquidate the business. Liquidation expenses are estimated to be $6,500. At the date the partnership
ceases operations, the balance sheet is as follows:
Cash
Noncash assets
Total assets
Liabilities
Alex, capital
Bess, capital
$ 305,000 Total liabilities and capital
$ 65,000
240,000
Part A: Prepare journal entries for the following transactions that occurred in chronological order:
a. Distributed safe cash payments to the partners.
b. Paid $28,500 of the partnership's liabilities.
c. Sold noncash assets for $257,500.
$ 47,500
168,000
89,500
$ 305,000
d. Distributed safe cash payments to the partners.
e. Paid remaining partnership liabilities of $19,000.
f. Paid $5,100 in liquidation expenses; no further expenses will be incurred.
g. Distributed remaining cash held by the business to the partners.

Part B: Prepare a final statement of partnership liquidation.
Complete this question by entering your answers in the tabs below.
Required A Required B
Prepare journal entries for the following transactions that occurred in chronological order: (Do not round intermediate calculations. If no
entry is required for a transaction/event, select "No journal entry required" in the first account field.)
a. Distributed safe cash payments to the partners.
b. Paid $28,500 of the partnership's liabilities.
c. Sold noncash assets for $257,500.
d. Distributed safe cash payments to the partners.
e. Paid remaining partnership liabilities of $19,000.
f. Paid $5,100 in liquidation expenses; no further expenses will be incurred.
g. Distributed remaining cash held by the business to the partners.

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

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