Martha Wheaton, Bess Chen, and Sam Smith were partners in an urban Calgary tea shop called Wake and showed the following account balances as of December 31, 2023: Account balances December 31, 2023 Accum. Deprec. Building Martha Accounts Wheaton, Payable Capital Bess Sam Chen, Smith, Capital Capital Building Land Cash $201,000 $858,000 $497,000 $225,000 $145,000 $350,000 $(69,000) $361,000 Due to difficulties, the partners decided to liquidate the partnership. The land and building were sold for $730,000 on January 1, 2024. The partners share any profit (loss) in the ratio of 2:1:1 for Wheaton, Chen, and Smith, respectively. Capital deficiencies at liquidation are absorbed by the remaining partners in Wake according to their profit (loss) ratio. Required: Complete the schedule. Prepare the entry to distribute the remaining cash to the partners. (Negative answers should be indicated by a minus sign.)

Martha Wheaton, Bess Chen, and Sam Smith were partners in an urban Calgary tea shop called Wake and showed the following account balances as of December 31, 2023: Account balances December 31, 2023 Accum. Deprec. Building Martha Accounts Wheaton, Payable Capital Bess Sam Chen, Smith, Capital Capital Building Land Cash $201,000 $858,000 $497,000 $225,000 $145,000 $350,000 $(69,000) $361,000 Due to difficulties, the partners decided to liquidate the partnership. The land and building were sold for $730,000 on January 1, 2024. The partners share any profit (loss) in the ratio of 2:1:1 for Wheaton, Chen, and Smith, respectively. Capital deficiencies at liquidation are absorbed by the remaining partners in Wake according to their profit (loss) ratio. Required: Complete the schedule. Prepare the entry to distribute the remaining cash to the partners. (Negative answers should be indicated by a minus sign.)

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter19: Accounting For Partnerships

Section: Chapter Questions

Problem 1CE

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Martha Wheaton, Bess Chen, and Sam Smith were partners in an urban Calgary tea shop called Wake and showed the following account balances as of December 31, 2020. Martha San Accum. Deprec. Building Bess Chen, Smith, Cash Building Accounts Payable Wheaton, Capital Land Capital Capital Account balances December 31, 2020 $188,000 $832,000 $484,000 $212,000 $132,000 $324,000 $(56,000) $340,000 Due to difficulties, the partners decided to liquidate the partnership. The land and building were sold for $691,000 on January 1, 2021. The partners share any profit (loss) in the ratio of 2:1:1 for Wheaton, Chen, and Smith, respectively Capital deficiencies of liquidation are absorbed by the remaining partners according to their income (loss) ratio. Required: Complete the schedule. Prepare the entry to distribute the remaining cash to the partners. (Negative answers should be indicated by a minus sign.) Accum Cash Building Land Deprec.. Building Smith Accounts Payable 132,000 s Martha Wheaton,…
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Yi Min started an engineering firm called Min Engineering. He began operations and completed seventransactions in May, which included his initial investment of $18,000 cash. After those seven transactions,the ledger included the following accounts with normal balances. Cash . . . . . . . . . . . . . . . . . . $37,600Office supplies. . . . . . . . . . 890Prepaid insurance. . . . . . . 4,600Office equipment. . . . . . . $12,900Accounts payable. . . . . . . 12,900Y. Min, Capital. . . . . . . . . . 18,000Y. Min, Withdrawals . . . . . . . . . . . $ 3,370Engineering fees earned. . . . . . . 36,000Rent expense. . . . . . . . . . . . . . . . 7,540 Required 1. Prepare a trial balance for this business as of the end of May. 2. The following seven transactions produced the account balances shown above. a. Y. Min invested $18,000 cash in the business. b. Paid $7,540 cash for monthly rent expense for May. c. Paid $4,600 cash in advance for the annual insurance premium beginning the next period. d.…
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