Cheese Partners has decided to close the store. At the date of closing, Cheese Partners had the following account balances: Capital $8,000 Cash 6,000 Inventory 12,000 Store fixtures 8,000 Accounts payable 22,000 A competitor agrees to buy the inventory and store fixtures for $15,000. Prepare the journal entries detailing the liquidation, assuming that partners Colette and Swarma are sharing profits on a 50:50 basis. If an amount box does not require an entry, leave it blank. Cash Cash Loss on Sale Loss on Sale Inventory Inventory Store Fixtures Store Fixtures Colette, Capital Colette, Capital Swarma, Capital Swarma, Capital Loss on Sale Loss on Sale Accounts Payable Accounts Payable Cash Cash Colette, Capital Colette, Capital Swarma, Capital Swarma, Capital Cash Cash
Cheese Partners has decided to close the store. At the date of closing, Cheese Partners had the following account balances: Capital $8,000 Cash 6,000 Inventory 12,000 Store fixtures 8,000 Accounts payable 22,000 A competitor agrees to buy the inventory and store fixtures for $15,000. Prepare the journal entries detailing the liquidation, assuming that partners Colette and Swarma are sharing profits on a 50:50 basis. If an amount box does not require an entry, leave it blank. Cash Cash Loss on Sale Loss on Sale Inventory Inventory Store Fixtures Store Fixtures Colette, Capital Colette, Capital Swarma, Capital Swarma, Capital Loss on Sale Loss on Sale Accounts Payable Accounts Payable Cash Cash Colette, Capital Colette, Capital Swarma, Capital Swarma, Capital Cash Cash
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Cheese Partners has decided to close the store. At the date of closing, Cheese Partners had the following account balances:
| Capital | $8,000 |
| Cash | 6,000 |
| Inventory | 12,000 |
| Store fixtures | 8,000 |
| Accounts payable | 22,000 |
A competitor agrees to buy the inventory and store fixtures for $15,000.
Prepare the
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Cash | Cash | |
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Loss on Sale | Loss on Sale | |
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Inventory | Inventory | |
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Store Fixtures | Store Fixtures | |
|
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Colette, Capital | Colette, Capital | |
|
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Swarma, Capital | Swarma, Capital | |
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|
Loss on Sale | Loss on Sale | |
|
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Accounts Payable | Accounts Payable | |
|
|
Cash | Cash | |
|
|
Colette, Capital | Colette, Capital | |
|
|
Swarma, Capital | Swarma, Capital | |
|
|
Cash | Cash |
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