J. Morgan and M. Halsted are partners who share income and loss in a 3:1 ratio. After several unprofitable periods, the two partners decided to liquidate their partnership. The current period's income or loss is closed to the partners' capital accounts according to the sharing agreement. Immediately before liquidation, the partnership balance sheet shows: land, $100,000; accounts payable, $80,000; J. Morgan, Capital, $15,000; and M. Halsted, Capital, $5,000. On January 15, the land was sold for $110,000 cash. On January 16, the partnership settled its liabilities. On January 31, the remaining cash was distributed to the partners. Prepare the January 15 journal entry for the partnership to record the allocation of the gain or loss from liquidation to the partners. View transaction list Journal entry worksheet 1 January 13, the land was $110,000 casi. On January 10, the partnership settled its liabilities. On January 31, the remaining cash was distributed to the partners. Prepare the January 15 journal entry for the partnership to record the allocation of the gain or loss from liquidation to the partners. Note: Enter debits before credits. Date Jan 15 Record entry General Journal Clear entry Debit Credit View general journal
J. Morgan and M. Halsted are partners who share income and loss in a 3:1 ratio. After several unprofitable periods, the two partners decided to liquidate their partnership. The current period's income or loss is closed to the partners' capital accounts according to the sharing agreement. Immediately before liquidation, the partnership balance sheet shows: land, $100,000; accounts payable, $80,000; J. Morgan, Capital, $15,000; and M. Halsted, Capital, $5,000. On January 15, the land was sold for $110,000 cash. On January 16, the partnership settled its liabilities. On January 31, the remaining cash was distributed to the partners. Prepare the January 15 journal entry for the partnership to record the allocation of the gain or loss from liquidation to the partners. View transaction list Journal entry worksheet 1 January 13, the land was $110,000 casi. On January 10, the partnership settled its liabilities. On January 31, the remaining cash was distributed to the partners. Prepare the January 15 journal entry for the partnership to record the allocation of the gain or loss from liquidation to the partners. Note: Enter debits before credits. Date Jan 15 Record entry General Journal Clear entry Debit Credit View general journal
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Knowledge Check 01
J. Morgan and M. Halsted are partners who share income and loss in a 3:1 ratio. After several unprofitable periods, the two partners
decided to liquidate their partnership. The current period's income or loss is closed to the partners' capital accounts according to the
sharing agreement. Immediately before liquidation, the partnership balance sheet shows: land, $100,000; accounts payable, $80,000;
J. Morgan, Capital, $15,000; and M. Halsted, Capital, $5,000. On January 15, the land was sold for $110,000 cash. On January 16, the
partnership settled its liabilities. On January 31, the remaining cash was distributed to the partners. Prepare the January 15 journal
entry for the partnership to record the allocation of the gain or loss from liquidation to the partners.
View transaction list
Journal entry worksheet
1
a
barua , the land was to $110,000 cash. On January 10,
the partnership settled its liabilities. On January 31, the remaining cash was
distributed to the partners. Prepare the January 15 journal entry for the
partnership to record the allocation of the gain or loss from liquidation to the
partners.
Note: Enter debits before credits.
Date
Jan 15
Record entry
General Journal
Clear entry
Debit
Credit
View general journal
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