Cullumber Company wishes to liquidate the firm by distributing the company's cash to the three partners. Prior to the distribution of cash, the company's balances are Cash $64,000; Oakley, Capital (Cr.) $48,400; Quaney, Capital (Dr.) $18,480; and Ellis, Capital (Cr.) $34,080. The income ratios of the three partners are 3:4:3, respectively. Prepare the entry to record the absorption of Quaney's capital deficiency by the other partners and the distribution of cash to the partners with credit balances. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Oakley, Capital Ellis, Capital Quaney, Capital (To record write-off of capital deficiency) Oakley, Capital Ellis, Capital Cash (To record distribution of cash to the partners) Debit 14605 19474 33795 14606 Credit 34079 48401 2

Cullumber Company wishes to liquidate the firm by distributing the company's cash to the three partners. Prior to the distribution of cash, the company's balances are Cash $64,000; Oakley, Capital (Cr.) $48,400; Quaney, Capital (Dr.) $18,480; and Ellis, Capital (Cr.) $34,080. The income ratios of the three partners are 3:4:3, respectively. Prepare the entry to record the absorption of Quaney's capital deficiency by the other partners and the distribution of cash to the partners with credit balances. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Oakley, Capital Ellis, Capital Quaney, Capital (To record write-off of capital deficiency) Oakley, Capital Ellis, Capital Cash (To record distribution of cash to the partners) Debit 14605 19474 33795 14606 Credit 34079 48401 2

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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