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 180,000, and any partners with a resulting deficits can and do pay the amount of their deficits Nicholas Jay, Kamla Paul, and Stephanie Ram plan to liquidate their partnership. They have always shared losses and gains in a 1:4:5ratio, and on the day of the liquidation their balance sheet appeared as follows:The Jaijairam CompanyBalance SheetDecember 20, 2016AssetsLiabilities and Owners' EquityCash$61,000Notes Payable$91,000Land204,000Nicholas Jay, Capital74,000Buildings186,000Kamla Paul, Capital206,000Stephanie Ram, Capital80,000Total Assets$451,000Total Liabilities & Owners' Equity$451,000

Partnership means where two or more person comes together to form the business and share profit and…

Answered: Nicholas Jay, Kamla Paul, and Stephanie…

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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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 180,000, and any partners with a resulting deficits can and do pay the amount of their deficits

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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