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Matthews, Mitchell, and Michaels are partners in BG Land Development Company and share losses in a 5.3.2 ratio, respectively. The balance sheet on June 30, 20X1, when they decide to liquidate the business, is as follows: Liabilities and Capital Assets Cash Noncash Assets Total Assets $ 10,000 176,000 $186,000 Accounts Payable Mitchell, Loan Matthews, Capital Mitchell, Capital Michaels, Capital Total Liabilities and Equities The noncash assets are sold for $130,000. Required: a. Prepare a statement of partnership realization and liquidation $ 30,000 10,000 83,000 43,800 19,200 $156,000

Matthews, Mitchell, and Michaels are partners in BG Land Development Company and share losses in a 5.3.2 ratio, respectively. The balance sheet on June 30, 20X1, when they decide to liquidate the business, is as follows: Liabilities and Capital Assets Cash Noncash Assets Total Assets $ 10,000 176,000 $186,000 Accounts Payable Mitchell, Loan Matthews, Capital Mitchell, Capital Michaels, Capital Total Liabilities and Equities The noncash assets are sold for $130,000. Required: a. Prepare a statement of partnership realization and liquidation $ 30,000 10,000 83,000 43,800 19,200 $156,000

FINANCIAL ACCOUNTING
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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Matthews, Mitchell, and Michaels are partners in BG Land Development Company and share losses in a 5.3.2 ratio, respectively. The balance sheet on June 30, 20X1, when they decide to liquidate the business, is as follows: Liabilities and Capital Assets Cash Noncash Assets Total Assets Balances Sale of assets The noncash assets are sold for $130,000. Payment to creditors Outside Creditors Mitchell Required: a. Prepare a statement of partnership realization and liquidation. Payment to partners Balances View transaction list $ $ A $ 10,000 176,000 S $186,000 Cash B 0 S Accounts Payable Mitchell, Loan Matthews, Capital Mitchell, Capital Michaels, Capital Total Liabilities and Equities 0 $ 0 $ BG LAND DEVELOPMENT COMPANY Statement of Partnership Realization and Liquidation Lump-Sum Distribution Noncash Assets Journal entry worksheet C Record the sale of the assets. Accounts Payable 0$ 0 S 0 S Mitchell Loan 05 0 $ 0 S Matthews 0 S $ 50,000 10,000 83,000 43,800 19,200 $156,000 05 0 $ Capital Balances 0 $ 0 $ 0 $ Mitchell 0 $ OS b. Prepare the required journal entries to account for the liquidation of the BG Land Development Company. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 0 S Michaels 0 0 0
Transcribed Image Text:Matthews, Mitchell, and Michaels are partners in BG Land Development Company and share losses in a 5.3.2 ratio, respectively. The balance sheet on June 30, 20X1, when they decide to liquidate the business, is as follows: Liabilities and Capital Assets Cash Noncash Assets Total Assets Balances Sale of assets The noncash assets are sold for $130,000. Payment to creditors Outside Creditors Mitchell Required: a. Prepare a statement of partnership realization and liquidation. Payment to partners Balances View transaction list $ $ A $ 10,000 176,000 S $186,000 Cash B 0 S Accounts Payable Mitchell, Loan Matthews, Capital Mitchell, Capital Michaels, Capital Total Liabilities and Equities 0 $ 0 $ BG LAND DEVELOPMENT COMPANY Statement of Partnership Realization and Liquidation Lump-Sum Distribution Noncash Assets Journal entry worksheet C Record the sale of the assets. Accounts Payable 0$ 0 S 0 S Mitchell Loan 05 0 $ 0 S Matthews 0 S $ 50,000 10,000 83,000 43,800 19,200 $156,000 05 0 $ Capital Balances 0 $ 0 $ 0 $ Mitchell 0 $ OS b. Prepare the required journal entries to account for the liquidation of the BG Land Development Company. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 0 S Michaels 0 0 0
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