Prior to the distribution of cash to the partners, the accounts in the Carla Vista Company are Cash $ 30,400; Vogel, Capital (Cr.) $ 20,200; Utech, Capital (Cr.) $ 18,200; and Pena, Capital (Dr.) $ 8,000. The income ratios are 5:3:2, respectively. Carla Vista Company decides to liquidate the company.
Prior to the distribution of cash to the partners, the accounts in the Carla Vista Company are Cash $ 30,400; Vogel, Capital (Cr.) $ 20,200; Utech, Capital (Cr.) $ 18,200; and Pena, Capital (Dr.) $ 8,000. The income ratios are 5:3:2, respectively. Carla Vista Company decides to liquidate the company.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Solve problems (a) and (b) completely and correctly please
Transcribed Image Text:Prior to the distribution of cash to the partners, the accounts in the Carla Vista Company are Cash $ 30,400; Vogel, Capital (Cr.) $
20,200; Utech, Capital (Cr.) $ 18,200; and Pena, Capital (Dr.) $ 8,000. The income ratios are 5:3:2, respectively. Carla Vista Company
decides to liquidate the company.
(a)
Prepare the entry to record (1) Pena's payment of $ 8,000 in cash to the partnership and (2) the distribution of cash to the
partners with credit balances. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
No. Account Titles and Explanation
Debit
Credit
(1)
(2)
Transcribed Image Text:(b).
Prepare the entry to record (1) the absorption of Pena's capital deficiency by the other partners and (2) the distribution of cash to
the partners with credit balances. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
No. Account Titles and Explanation
Debit
Credit
(1)
(2)
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