Cullumber Company at December 31 has cash $23,000, noncash assets $105,000, liabilities $57,400, and the following capital balances: Floyd $45,800 and DeWitt $24,800. The firm is liquidated, and $116,000 in cash is received for the noncash assets. Floy and DeWitt income ratios are 60% and 40%, respectively. Cullumber Company decides to liquidate the partnership. Prepare the entries to record: (Credit account titles are automatically Indented when amount is entered. Do not indent manually) a. b. C. d. The sale of noncash assets. The allocation of the gain or loss on realization to the partners. Payment of creditors. Distribution of cash to the partners.
Cullumber Company at December 31 has cash $23,000, noncash assets $105,000, liabilities $57,400, and the following capital balances: Floyd $45,800 and DeWitt $24,800. The firm is liquidated, and $116,000 in cash is received for the noncash assets. Floy and DeWitt income ratios are 60% and 40%, respectively. Cullumber Company decides to liquidate the partnership. Prepare the entries to record: (Credit account titles are automatically Indented when amount is entered. Do not indent manually) a. b. C. d. The sale of noncash assets. The allocation of the gain or loss on realization to the partners. Payment of creditors. Distribution of cash to the partners.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Kk.426.
Transcribed Image Text:Cullumber Company at December 31 has cash $23,000, noncash assets $105,000, liabilities $57,400, and the following capital
balances: Floyd $45,800 and DeWitt $24,800. The firm is liquidated, and $116,000 in cash is received for the noncash assets. Floyd
and DeWitt income ratios are 60% and 40%, respectively. Cullumber Company decides to liquidate the partnership.
Prepare the entries to record: (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
a.
b.
C.
d.
b.
The sale of noncash assets.
The allocation of the gain or loss on realization to the partners.
Payment of creditors.
Distribution of cash to the partners.
Account Titles and Explanation
d.
Cash
Noncash Assets
Gain on Realization
Gain on Realization
Floyd, Capital
DeWitt, Capital
Liabilities
Cash
DeWitt, Capital
Floyd, Capital
Debit
116000
12000
57400
53400
29000
Credit
105000
12000
7200
4800
57400
82400
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