Nicholas Jay, Kamla Paul, and Stephanie Ram plan to liquidate their partnership. They have always shared losses and gains in a 1:4:5 ratio, and on the day of the liquidation their balance sheet appeared as follows: The Jaijairam Company Balance Sheet December 20, 2016 Assets Liabilities and Owners' Equity Cash $61,000 Notes Payable $91,000 Land 204,000 Nicholas Jay, Capital 74,000 Buildings 186,000 Kamla Paul, Capital 206,000 Stephanie Ram, Capital 80,000 Total Assets $451,000 Total Liabilities & Owners' Equity $451,000
Nicholas Jay, Kamla Paul, and Stephanie Ram plan to liquidate their partnership. They have always shared losses and gains in a 1:4:5 ratio, and on the day of the liquidation their balance sheet appeared as follows: The Jaijairam Company Balance Sheet December 20, 2016 Assets Liabilities and Owners' Equity Cash $61,000 Notes Payable $91,000 Land 204,000 Nicholas Jay, Capital 74,000 Buildings 186,000 Kamla Paul, Capital 206,000 Stephanie Ram, Capital 80,000 Total Assets $451,000 Total Liabilities & Owners' Equity $451,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Under the following four independent assumptions, prepare the journal entries for the sale of the land and buildings, allocation of any loss or gain,any deficits, the payment of the liability, and the distributions to the partners if:
A) the land and buildings were sold for 130,000, and the partners with deficits have no assets other than those invested in the business
Transcribed Image Text:Nicholas Jay, Kamla Paul, and Stephanie Ram plan to liquidate their partnership. They have always shared losses and gains in a 1:4:5
ratio, and on the day of the liquidation their balance sheet appeared as follows:
The Jaijairam Company
Balance Sheet
December 20, 2016
Assets
Liabilities and Owners' Equity
Cash
$61,000
Notes Payable
$91,000
Land
204,000
Nicholas Jay, Capital
74,000
Buildings
186,000
Kamla Paul, Capital
206,000
Stephanie Ram, Capital
80,000
Total Assets
$451,000
Total Liabilities & Owners' Equity
$451,000
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