Quinn, Mellissa, and Harper are liquidating their partnership. They have no agreement for sharing profits and losses. The ending capital account balances are Quin, $13,000; Mellissa, $13,000; Harper, ($2,000). There is $60,000 in cash to be distributed to the partners. The journal entry to record the distribution should be Quinn, CapitalMellissa, CapitalHarper, Capital20,00020,00020,000Cash60,000Quinn, Capital30,00030,000Mellissa, CapitalCash60,000Cash60,000Quinn, Capital60,000Cash12,00046,000Harper, Capital2,00060,000|Quinn, CapitalMellissa, CapitalQuinn, Capital60,00030,00030,000CashHarper, Capital

Journal entry - It refers to the process where the business transactions are recorded in the books…

Answered: Quinn, Mellissa, and Harper are…

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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Quinn, Mellissa, and Harper are liquidating their partnership. They have no agreement for sharing profits and losses. The ending capital account balances are Quin, $13,000; Mellissa, $13,000; Harper, ($2,000). There is $60,000 in cash to be distributed to the partners. The journal entry to record the distribution should be

Quinn, Capital
Mellissa, Capital
Harper, Capital
20,000
20,000
20,000
Cash
60,000
Quinn, Capital
30,000
30,000
Mellissa, Capital
Cash
60,000
Cash
60,000
Quinn, Capital
60,000
Cash
12,000
46,000
Harper, Capital
2,000
60,000|
Quinn, Capital
Mellissa, Capital
Quinn, Capital
60,000
30,000
30,000
Cash
Harper, Capital

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

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