Prepare journal entries for the following transactions: a. Distributed safe cash payments to the partners. b. Paid $27,900 of the partneship's liabilities. c. Sold noncash assets for $236,500. d. Distributed safe cash payments to the partners. e. Paid remaining partnership liabilities of $18,600. f. Paid $4,300 in liquidation expenses; no further expenses will be incurred. g. Distributed remaining cash held by the business to the partners. Part B: Prepare a final statement of partnership liquidation.
Alex and Bess have been in partnership for many years. The partners, who share
Cash $63,000
Noncash assets 220,000
Total $283,000
Liabilities $46,500
Alex, capital 132,000
Bess, capital 104,500
Total liabilities and capital $283,000
Part A: Prepare
a. Distributed safe cash payments to the partners.
b. Paid $27,900 of the partneship's liabilities.
c. Sold noncash assets for $236,500.
d. Distributed safe cash payments to the partners.
e. Paid remaining partnership liabilities of $18,600.
f. Paid $4,300 in liquidation expenses; no further expenses will be incurred.
g. Distributed remaining cash held by the business to the partners.
Part B: Prepare a final statement of partnership liquidation.
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