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Alex and Bess have been in partnership for many years. The partners, who share profits and losses on a 60:40 basis, respectively,. wish to retire and have agreed to liquidate the business. Liquidation expenses are estimated to be $5,500. At the date the partnership ceases operations, the balance sheet is as follows: Cash Noncash assets $ 51,000 100,000 $ 40,500 60,000 50,500 Liabilities Alex, capital Bess, capital Total assets $ 151,000 Total liabilities and capital $ 151,000 Part A: Prepare journal entries for the following transactions that occurred in chronological order: a. Distributed safe cash payments to the partners. b. Paid $24,300 of the partnership's liabilities. c. Sold noncash assets for $110,500. d. Distributed safe cash payments to the partners. e. Paid remaining partnership liabilities of $16,200. f. Paid $4,400 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.

Alex and Bess have been in partnership for many years. The partners, who share profits and losses on a 60:40 basis, respectively,. wish to retire and have agreed to liquidate the business. Liquidation expenses are estimated to be $5,500. At the date the partnership ceases operations, the balance sheet is as follows: Cash Noncash assets $ 51,000 100,000 $ 40,500 60,000 50,500 Liabilities Alex, capital Bess, capital Total assets $ 151,000 Total liabilities and capital $ 151,000 Part A: Prepare journal entries for the following transactions that occurred in chronological order: a. Distributed safe cash payments to the partners. b. Paid $24,300 of the partnership's liabilities. c. Sold noncash assets for $110,500. d. Distributed safe cash payments to the partners. e. Paid remaining partnership liabilities of $16,200. f. Paid $4,400 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.

FINANCIAL ACCOUNTING
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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I need help finding the answers for c, d, e, f & g. 

No Transaction General Journal Debit Credit 1 a. Bess, Capital 5,000 Cash 5,000 2 b Liabilities 24,300 O Cash 24,300 O 3 C. Cash 110,500 O Alex, Capital Bess, Capital Noncash assets 4 d. Alex, Capital Bess, Capital Cash e. Liabilities Cash 6 f. Alex, Capital Bess, Capital Cash
Transcribed Image Text:No Transaction General Journal Debit Credit 1 a. Bess, Capital 5,000 Cash 5,000 2 b Liabilities 24,300 O Cash 24,300 O 3 C. Cash 110,500 O Alex, Capital Bess, Capital Noncash assets 4 d. Alex, Capital Bess, Capital Cash e. Liabilities Cash 6 f. Alex, Capital Bess, Capital Cash
Alex and Bess have been in partnership for many years. The partners, who share profits and losses on a 60:40 basis, respectively, wish to retire and have agreed to liquidate the business. Liquidation expenses are estimated to be $5,500. At the date the partnership ceases operations, the balance sheet is as follows: $ 51,000 100,000 Liabilities 2$ 40,500 60,000 50,500 Cash Noncash assets Alex, capital Bess, capital Total assets $ 151,000 Total liabilities and capital $ 151,000 Part A: Prepare journal entries for the following transactions that occurred in chronological order: a. Distributed safe cash payments to the partners. b. Paid $24,300 of the partnership's liabilities. c. Sold noncash assets for $110,500. d. Distributed safe cash payments to the partners. e. Paid remaining partnership liabilities of $16,200. f. Paid $4,400 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.
Transcribed Image Text:Alex and Bess have been in partnership for many years. The partners, who share profits and losses on a 60:40 basis, respectively, wish to retire and have agreed to liquidate the business. Liquidation expenses are estimated to be $5,500. At the date the partnership ceases operations, the balance sheet is as follows: $ 51,000 100,000 Liabilities 2$ 40,500 60,000 50,500 Cash Noncash assets Alex, capital Bess, capital Total assets $ 151,000 Total liabilities and capital $ 151,000 Part A: Prepare journal entries for the following transactions that occurred in chronological order: a. Distributed safe cash payments to the partners. b. Paid $24,300 of the partnership's liabilities. c. Sold noncash assets for $110,500. d. Distributed safe cash payments to the partners. e. Paid remaining partnership liabilities of $16,200. f. Paid $4,400 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.
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