dont give answer in image format Alex and Bess have been in partnership for many years. The partners, who share profits and losses on a 60:40 basis, respectively,wish to retire and have agreed to liquidate the business. Liquidation expenses are estimated to be $5,000. At the date the partnershipceases operations, the balance sheet is as follows:CashNoncash assetsTotal assets$50,000150,000$ 200,000Part A: Prepare journal entries for the following transactions that occurred in chronological order:a. Distributed safe cash payments to the partners.b. Paid $30,000 of the partnership's liabilities.c. Sold noncash assets for $160,000.d. Distributed safe cash payments to the partners.e. Paid remaining partnership liabilities of $10,000.f. Paid $4,000 in liquidation expenses; no further expenses will be incurred.g. Distributed remaining cash held by the business to the partners.LiabilitiesAlex, capitalBess, capitalTotal liabilities and capitalPart B: Prepare a final statement of partnership liquidation.Required AComplete this question by entering your answers in the tabs below.Beginning balancesDistribution to partnersPaid liabilitiesSold noncash assetsUpdated balancesDistribution to partnersRequired BPrepare a final statement of partnership liquidation. (Amounts to be deducted should be entered in minus sign.)ALEX AND BESS PARTNERSHIPStatement of Partnership LiquidationCashNon-cashAssets$ 40,00090,00070,000$ 200,000Liabilities Alex, Capital Bess, Capital

A business combination is the union of the small business units into one. The new combined unit is…

Prepare a final statement of partnership liquidation. (Amounts to be deducted should be entered in minus sign.) ALEX AND BESS PARTNERSHIP Statement of Partnership Liquidation Cash Non-cash Assets Beginning balances Distribution to partners Paid liabilities Sold noncash assets Updated balances Distribution to partners Liabilities Alex, Capital Bess, Capital

Prepare a final statement of partnership liquidation. (Amounts to be deducted should be entered in minus sign.) ALEX AND BESS PARTNERSHIP Statement of Partnership Liquidation Cash Non-cash Assets Beginning balances Distribution to partners Paid liabilities Sold noncash assets Updated balances Distribution to partners Liabilities Alex, Capital Bess, Capital

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter23: Accounting For Partnerships

Section: Chapter Questions

Problem 3AP

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Arun and Margot want to admit Tammy as a third partner for their partnership. Their capital balances prior to Tammys admission are $50,000 each. Prepare a schedule showing how the bonus should be divided among the three, assuming the profit or loss agreement will be 1:3 once Tammy has been admitted and her contribution is: A. $20,000 B. $80,000 C. $50,000. In addition, show the resulting journal entries to each of the three partners capital accounts.
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The Statement of Financial Position of the XY partnership on December 31, 2018, appears below. $ 60,000 LIABILITIES $ 60,000 CASH OTHER ASSETS TOTAL ASSETS 200,000 a. $260,000 X, CAPITAL Y, CAPITAL TOTAL LIABILITIES AND CAPITAL 90,000 110,000 $260,000 X and Y share profits and losses in the ratio 50:50. Each of the following questions is independent of the others. Prepare journal entries for each of the following: Use bonus method where appropriate and show all computations. Refer to the above information. Assume that Z purchases a one-fourth proportionate capital interest directly from Y for a total of $60,000. (Direct purchase) b. Refer to the above information. Assume Z invests $60,000 cash into the XY partnership for a one-fourth interest in partnership capital and profits. c. Refer to the above information. Assume that Z invests $80,000 cash into the XY partnership for a one-fifth interest in partnership capital and profits.
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After the tangible assets have been adjusted to current market prices, the capital accounts of Grayson Jackson and Harry Barge have balances of $44,920 and $60,890, respectively. Lewan Gorman is to be admitted to the partnership, contributing $32,080 cash to the partnership, for which he is to receive an ownership equity of $36,650. All partners share equally in income. Required: a. On December 31, journalize the entry to record the admission of Gorman, who is to receive a bonus of $4,570. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. b. What are the capital balances of each partner after the admission of the new partner? c. Why are tangible assets adjusted to current market prices, prior to admitting a new partner? Chart of…
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