Prepare the journal entries to allocate any gain or loss due to the sale of assets, and to record cash distribution.
Prepare the journal entries to allocate any gain or loss due to the sale of assets, and to record cash distribution.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:Paul, Kris, and Nancy operate a small law firm under a limited liability
partnership. However, due to some internal conflicts, all the partners have
agreed to end the partnership. The following items remained in the balance
sheet on July 20, 2020 after all the assets have been liquidated. The net
asset amount is also given in the table below.
$479,000
$461,600
$77,000
Nancy, Capital $219,000
Paul, Capital $183,000
Net Assets
Cash
Kris, Capital
Prepare the journal entries to allocate any gain or loss due to the sale of
assets, and to record cash distribution.
Do not enter dollar signs or commas in the input boxes.
Enter the debit accounts in alphabetical order.
Date
Account Title and Explanation
Debit
Credit
Jul 20
To allocate the gain or loss on sale
of net assets
Jul 20
To record cash distribution among
partners
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