Brown and Sue share the profits of 30% and 70%, respectively. After all the company partnership assets are sold, the general ledger account shows the balance statement below. Both partners are personally insolvent and unable to make deposits to the partnership firm. Prepare journal entries to summarize the activities of the firm's partnership, including the proper distribution of existing cash. Cash $2,000 Salary to be paid $500 to Brown Must be billed 1,500 Capital Brown 9,500 from Sue Liquidation loss 24,500 Sue Capital 18.000 28.000 28.000
Brown and Sue share the profits of 30% and 70%, respectively. After all the company partnership assets are sold, the general ledger account shows the balance statement below. Both partners are personally insolvent and unable to make deposits to the partnership firm. Prepare journal entries to summarize the activities of the firm's partnership, including the proper distribution of existing cash. Cash $2,000 Salary to be paid $500 to Brown Must be billed 1,500 Capital Brown 9,500 from Sue Liquidation loss 24,500 Sue Capital 18.000 28.000 28.000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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