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 expensed are estimated to be $5,000. At the date the partnership ceases operations,the balance sheet is as follows: Cash 50,000-----------------------------Liabilities---------$40,000 NonCash Assets 150,000----------------Alex; capital 90,000 Total Assets----200,000-----------------Bess;capital 70,000 -------------------------------------------Total liabilties and capital 200,000 Part A:Prepare journal entries for the following transaction A. Distribute safe cash payments to the partners B. Paid 30,000 of tthe partnerships liabilities. C. Sold noncash assets for 160,000. D. Distributed safe cash payments to the partners. E. Paid remaining partnership liabilities of 10,000 F. Paid 4,000 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
Cash 50,000-----------------------------Liabilities---------$40,000
NonCash Assets 150,000----------------Alex; capital 90,000
Total Assets----200,000-----------------Bess;capital 70,000
-------------------------------------------Total liabilties and capital 200,000
Part A:Prepare
A. Distribute safe cash payments to the partners
B. Paid 30,000 of tthe partnerships liabilities.
C. Sold noncash assets for 160,000.
D. Distributed safe cash payments to the partners.
E. Paid remaining partnership liabilities of 10,000
F. Paid 4,000 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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