March, April, and May have been in partnership for a number of years. The partners allocate all profits and losses on a 4:2:2 basis, respectively. Recently, each partner has become personally insolvent and, thus, the partners have decided to liquidate the business in hopes of remedying their personal financial problems. As of September 1, the partnership's balance sheet is as follows: $ 31,000 124,000 Cash Liabilities March, capital April, capital $108,000 59,000 95,000 Accounts receivable 100,000 Inventory Land, building, and equipment (net) 73,000 May, capital 66,000 Total liabilities Total assets $328,000 $328,000 and capital Prepare journal entries for the following transactions a. Sold all inventory for $76,000 cash. b. Paid $13,500 in liquidation expenses. c. Paid $60,000 of the partnership's liabilities. d. Collected $76,000 of the accounts receivable. e. Distributed safe payments of cash; the partners anticipate no further liquidation expenses. f. Sold remaining accounts receivable for 20 percent of face value. g. Sold land, building, and equipment for $37,000. h. Paid all remaining liabilities of the partnership. . Distributed cash held by the business to the partners.

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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xA A.
AaBbCcDdE
AaBbCcDdE AaBbCcDc AaBbCcDdEe AaBb( AaBbCcDdEe
Normal
No Spacing
Heading 1
Heading 2
Title
Subtitle
Styles
Pane
Dictate
Sensitivi
March, April, and May have been in partnership for a number of years. The
partners allocate all profits and losses on a 4:2:2 basis, respectively. Recently,
each partner has become personally insolvent and, thus, the partners have
decided to liquidate the business in hopes of remedying their personal
financial problems. As of September 1, the partnership's balance sheet is as
follows:
$ 31,000
124,000
100,000
Cash
Liabilities
March, capital
April, capital
$108,000
59,000
95,000
Accounts receivable
Inventory
Land, building, and
equipment (net)
73,000
May, capital
66,000
Total liabilities
Total assets
$328,000
$328,000
and capital
Prepare journal entries for the following transactions
a. Sold all inventory for $76,000 cash.
b. Paid $13,500 in liquidation expenses.
c. Paid $60,000 of the partnership's liabilities.
d. Collected $76,000 of the accounts receivable.
e. Distributed safe payments of cash; the partners anticipate no further
liquidation expenses.
f. Sold remaining accounts receivable for 20 percent of face value.
g. Sold land, building, and equipment for $37,000.
h. Paid all remaining liabilities of the partnership.
i. Distributed cash held by the business to the partners.
16
Focus
English (United States)
00
Transcribed Image Text:xA A. AaBbCcDdE AaBbCcDdE AaBbCcDc AaBbCcDdEe AaBb( AaBbCcDdEe Normal No Spacing Heading 1 Heading 2 Title Subtitle Styles Pane Dictate Sensitivi March, April, and May have been in partnership for a number of years. The partners allocate all profits and losses on a 4:2:2 basis, respectively. Recently, each partner has become personally insolvent and, thus, the partners have decided to liquidate the business in hopes of remedying their personal financial problems. As of September 1, the partnership's balance sheet is as follows: $ 31,000 124,000 100,000 Cash Liabilities March, capital April, capital $108,000 59,000 95,000 Accounts receivable Inventory Land, building, and equipment (net) 73,000 May, capital 66,000 Total liabilities Total assets $328,000 $328,000 and capital Prepare journal entries for the following transactions a. Sold all inventory for $76,000 cash. b. Paid $13,500 in liquidation expenses. c. Paid $60,000 of the partnership's liabilities. d. Collected $76,000 of the accounts receivable. e. Distributed safe payments of cash; the partners anticipate no further liquidation expenses. f. Sold remaining accounts receivable for 20 percent of face value. g. Sold land, building, and equipment for $37,000. h. Paid all remaining liabilities of the partnership. i. Distributed cash held by the business to the partners. 16 Focus English (United States) 00
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