mcdonalds. is shutting down business and liquidating. The balances below will be used for the liquidation. john and brad share profits and losses equally. Cash $3,000 Notes Payable $7,500 vehicle 30,000 Less: Accumulated Depreciation 15,000 Bert, Capital 9,000 Ernie, Capital 1,500 Total Assets $18,000 Total Liabilities and Partner's equity $18,000 Sesame Street Co. Balance Sheet December 31, 2020 Assets Liabilities Partners' Equity The vehicle has been sold for $10,500 cash and neither partner has sufficient assets to pay any capital deficits. REQUIRED: Prepare the journal entries for the sale of the vehicle and the distribution of the cash to the proper parties on January 1, 2021 below.
mcdonalds. is shutting down business and liquidating. The balances below will be used for the liquidation. john and brad share profits and losses equally. Cash $3,000 Notes Payable $7,500 vehicle 30,000 Less: Accumulated Depreciation 15,000 Bert, Capital 9,000 Ernie, Capital 1,500 Total Assets $18,000 Total Liabilities and Partner's equity $18,000 Sesame Street Co. Balance Sheet December 31, 2020 Assets Liabilities Partners' Equity The vehicle has been sold for $10,500 cash and neither partner has sufficient assets to pay any capital deficits. REQUIRED: Prepare the journal entries for the sale of the vehicle and the distribution of the cash to the proper parties on January 1, 2021 below.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![mcdonalds. is shutting down business and
liquidating. The balances below will be used
for the liquidation. john and brad share profits
and losses equally. Cash $3,000 Notes
Payable $7,500 vehicle 30,000 Less:
Accumulated Depreciation 15,000 Bert,
Capital 9,000 Ernie, Capital 1,500 Total Assets
$18,000 Total Liabilities and Partner's equity
$18,000 Sesame Street Co. Balance Sheet
December 31, 2020 Assets Liabilities Partners'
Equity The vehicle has been sold for $10,500
cash and neither partner has sufficient assets
to pay any capital deficits. REQUIRED: Prepare
the journal entries for the sale of the vehicle
and the distribution of the cash to the proper
parties on January 1, 2021 below.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0668b52e-7726-4fc1-8b33-b8d860314cb7%2F2a227e2a-b9f0-419b-9f02-aa587235f75f%2Fs7s1gmo_processed.jpeg&w=3840&q=75)
Transcribed Image Text:mcdonalds. is shutting down business and
liquidating. The balances below will be used
for the liquidation. john and brad share profits
and losses equally. Cash $3,000 Notes
Payable $7,500 vehicle 30,000 Less:
Accumulated Depreciation 15,000 Bert,
Capital 9,000 Ernie, Capital 1,500 Total Assets
$18,000 Total Liabilities and Partner's equity
$18,000 Sesame Street Co. Balance Sheet
December 31, 2020 Assets Liabilities Partners'
Equity The vehicle has been sold for $10,500
cash and neither partner has sufficient assets
to pay any capital deficits. REQUIRED: Prepare
the journal entries for the sale of the vehicle
and the distribution of the cash to the proper
parties on January 1, 2021 below.
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