E 17-2 Liquidation—Journal entries After closing entries were made on December 31, 2016, the ledger of Mac, Nan, and Obe contained the following balances: Cash $39,000 Accounts payable $5,000 Inventory 16,000 Mac capital (40%) 15,000 Nan capital (30%) 8,000 Obe capital (30%) 27,000 Due to unsuccessful operations, the partners decide to liquidate the business. During January some of the inventory is sold at cost for $10,000, and on January 31, 2017, all available cash is distributed. It is not known if the remaining inventory items can be sold. Required Prepare all journal entries necessary to account for the transactions of the partnership during January 2017.
E 17-2 Liquidation—Journal entries After closing entries were made on December 31, 2016, the ledger of Mac, Nan, and Obe contained the following balances: Cash $39,000 Accounts payable $5,000 Inventory 16,000 Mac capital (40%) 15,000 Nan capital (30%) 8,000 Obe capital (30%) 27,000 Due to unsuccessful operations, the partners decide to liquidate the business. During January some of the inventory is sold at cost for $10,000, and on January 31, 2017, all available cash is distributed. It is not known if the remaining inventory items can be sold. Required Prepare all journal entries necessary to account for the transactions of the partnership during January 2017.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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E 17-2 Liquidation—Journal entries
After closing entries were made on December 31, 2016, the ledger of Mac, Nan, and Obe contained the following balances:
|
Cash |
$39,000 |
Accounts payable |
$5,000 |
|
Inventory |
16,000 |
Mac capital (40%) |
15,000 |
|
|
|
Nan capital (30%) |
8,000 |
|
|
|
Obe capital (30%) |
27,000 |
Due to unsuccessful operations, the partners decide to liquidate the business. During January some of the inventory is sold at cost for $10,000, and on January 31, 2017, all available cash is distributed. It is not known if the remaining inventory items can be sold.
Required
Prepare all journal entries necessary to account for the transactions of the
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