Danks, Vernersen, and Walsh are liquidating their partnership. Before selling the assets and paying the liabilities, the capital balances are Danks $40,000; Vernersen, $26,000; and Walsh, $16,000. The profit-and-loss-sharing ratio has been 3:1:1 for Danks, Vernersen, and Walsh, respectively. The partnership has $65,000 cash, $42,000 non-cash assets, and $25,000 accounts payable. Read the requirements. Requirement 1. Assuming the partnership sells the non-cash assets for $49,000, record the journal entries for the sale of non-cash assets, allocation of gain distribution of remaining cash to partners. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) loss on liquidation, the payment of the outstanding liabilities, and the Journalize the sale of the non-cash assets for $49,000. Date Accounts and Explanation Debit Credit Requirements Dec. 31 1. Assuming the partnership sells the non-cash assets for $49,000, record the journal entries for the sale of non-cash assets, allocation of gain or loss on liquidation, the payment of the outstanding liabilities, and the distribution of remaining cash to partners. 2. Assuming the partnership sells the non-cash assets for $17,000, record the journal entries for the sale of non-cash assets, allocation of gain or loss on liquidation, the payment of the outstanding liabilities, and the distribution of remaining cash to partners. Print Done
Danks, Vernersen, and Walsh are liquidating their partnership. Before selling the assets and paying the liabilities, the capital balances are Danks $40,000; Vernersen, $26,000; and Walsh, $16,000. The profit-and-loss-sharing ratio has been 3:1:1 for Danks, Vernersen, and Walsh, respectively. The partnership has $65,000 cash, $42,000 non-cash assets, and $25,000 accounts payable. Read the requirements. Requirement 1. Assuming the partnership sells the non-cash assets for $49,000, record the journal entries for the sale of non-cash assets, allocation of gain distribution of remaining cash to partners. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) loss on liquidation, the payment of the outstanding liabilities, and the Journalize the sale of the non-cash assets for $49,000. Date Accounts and Explanation Debit Credit Requirements Dec. 31 1. Assuming the partnership sells the non-cash assets for $49,000, record the journal entries for the sale of non-cash assets, allocation of gain or loss on liquidation, the payment of the outstanding liabilities, and the distribution of remaining cash to partners. 2. Assuming the partnership sells the non-cash assets for $17,000, record the journal entries for the sale of non-cash assets, allocation of gain or loss on liquidation, the payment of the outstanding liabilities, and the distribution of remaining cash to partners. Print Done
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:**Transcription for Educational Website**
**Danks, Vernersen, and Walsh are liquidating their partnership.** Before selling the assets and paying the liabilities, the capital balances are Danks: $40,000; Vernersen: $26,000; and Walsh: $16,000. The profit-and-loss-sharing ratio has been 3:1:1 for Danks, Vernersen, and Walsh, respectively. The partnership has $65,000 cash, $42,000 non-cash assets, and $25,000 accounts payable.
**Requirements:**
**Requirement 1.** Assuming the partnership sells the non-cash assets for $49,000, record the journal entries for the sale of non-cash assets, allocation of gain or loss on liquidation, the payment of the outstanding liabilities, and the distribution of remaining cash to partners. *(Record debits first, then credits. Select the explanation on the last line of the journal entry table.)*
Journalize the sale of the non-cash assets for $49,000.
| Date | Accounts and Explanation | Debit | Credit |
|----------|--------------------------|-------|--------|
| Dec. 31 | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
**Requirements (detailed):**
1. Assuming the partnership sells the non-cash assets for $49,000, record the journal entries for the sale of non-cash assets, allocation of gain or loss on liquidation, the payment of the outstanding liabilities, and the distribution of remaining cash to partners.
2. Assuming the partnership sells the non-cash assets for $17,000, record the journal entries for the sale of non-cash assets, allocation of gain or loss on liquidation, the payment of the outstanding liabilities, and the distribution of remaining cash to partners.
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