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 $ 63,000 220,000 Liabilities Alex, capital Bess, capital Total liabilities and capital %$446,500 132,000 104, 500 $ 283, 000 Total assets $ 283,000 Part A: Prepare journal entries for the following transactions that occurred in chronological order: a. Distributed safe cash payments to the partners. b. Pald $27,900 of the partnership's llabilities. c. Sold noncash assets for $236,500. d. Distributed safe cash payments to the partners. e. Paid remalning partnership llabilities of $18,600. f. Pald $4,300 in liquidation experises, 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 $ 63,000 220,000 Liabilities Alex, capital Bess, capital Total liabilities and capital %$446,500 132,000 104, 500 $ 283, 000 Total assets $ 283,000 Part A: Prepare journal entries for the following transactions that occurred in chronological order: a. Distributed safe cash payments to the partners. b. Pald $27,900 of the partnership's llabilities. c. Sold noncash assets for $236,500. d. Distributed safe cash payments to the partners. e. Paid remalning partnership llabilities of $18,600. f. Pald $4,300 in liquidation experises, 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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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