RColAVD(20QS 11-15 Partnership liquidation-gain on sale of equipment LO5 excelSam, Andrew, and Mary were partners in Gem Skateboard Company. The partners shared profits and losses 3:2:3, respectively. On April1, 2020, the partnership showed the following account balances just prior to liquidation:Account balances immediatelyprior to liquidation.….........Equipment was sold for $175,000. Prepare the journal entry to record the final distribution of cash.Files to submitSubmit SUAccum.Deprec. Sam, Andrew, Mary,Cash Equipment Equipment Capital Capital CapitalCancel$32,000 $151,000 $36,000 $65,000 $48,000 $34,000

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

QS 11-15 Partnership liquidation-gain on sale of equipment LO5 eXcel Sam, Andrew, and Mary were partners in Gem Skateboard Company. The partners shared profits and losses 3:2:3, respectively. On April 1, 2020, the partnership showed the following account balances just prior to liquidation: Accum. Deprec. Sam, Andrew, Mary, Cash Equipment Equipment Capital Capital Capital Account balances immediately prior to liquidation......... Equipment was sold for $175,000. Prepare the journal entry to record the final distribution of cash. $32,000 $151,000 $36,000 $65,000 $48,000 $34,000

QS 11-15 Partnership liquidation-gain on sale of equipment LO5 eXcel Sam, Andrew, and Mary were partners in Gem Skateboard Company. The partners shared profits and losses 3:2:3, respectively. On April 1, 2020, the partnership showed the following account balances just prior to liquidation: Accum. Deprec. Sam, Andrew, Mary, Cash Equipment Equipment Capital Capital Capital Account balances immediately prior to liquidation......... Equipment was sold for $175,000. Prepare the journal entry to record the final distribution of cash. $32,000 $151,000 $36,000 $65,000 $48,000 $34,000

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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A-7
xA A. AaBbCcDdE AaBbCcDdE AaBbCcDc AaBbCcDdEe AaBb( AaBbCcDdEe Normal No Spacing Heading 1 Heading 2 Title Subtitle Styles Pane Dictate Sensitivi March, April, and May have been in partnership for a number of years. The partners allocate all profits and losses on a 4:2:2 basis, respectively. Recently, each partner has become personally insolvent and, thus, the partners have decided to liquidate the business in hopes of remedying their personal financial problems. As of September 1, the partnership's balance sheet is as follows: $ 31,000 124,000 100,000 Cash Liabilities March, capital April, capital $108,000 59,000 95,000 Accounts receivable Inventory Land, building, and equipment (net) 73,000 May, capital 66,000 Total liabilities Total assets $328,000 $328,000 and capital Prepare journal entries for the following transactions a. Sold all inventory for $76,000 cash. b. Paid $13,500 in liquidation expenses. c. Paid $60,000 of the partnership's liabilities. d. Collected $76,000 of the…
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Acct 102
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