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Required: 1. Prepare a Statement of Partnership Liquidatfion 2. Prepare thejournal entries torecordthe liquidation of the partnership

Required: 1. Prepare a Statement of Partnership Liquidatfion 2. Prepare thejournal entries torecordthe liquidation of the partnership

FINANCIAL ACCOUNTING
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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CASE 3 Partners), Jand K share profits and loses equally. On March 31, 2020, the partners voted toliquidate the partnership when itsassets, liabilities, andcapital were as follows: Cash 77.000 Liabilities 440,000 Note receivable from K 60,500 Loans: Other noncash assets 660,000 22,000 88,000 Capital 82,500 82,500 K 82,500 797,500 797,500 Assume the following: a) All the noncash assetsof P660,000 were sold for P297,000 b) Kinstructedthe partneship to wite off the P60,500 he borrowed from the Rartnership c) All partnerscoud eliminate any deficits in ther capital accounts through offset or contribution, or both d) All cash was distributed to outside creditors and partners Required: 1. Prepare a Statement of Partnership Liquidation 2. Prepare thejournal entries torecordthe liquidation of the partnership
Transcribed Image Text:CASE 3 Partners), Jand K share profits and loses equally. On March 31, 2020, the partners voted toliquidate the partnership when itsassets, liabilities, andcapital were as follows: Cash 77.000 Liabilities 440,000 Note receivable from K 60,500 Loans: Other noncash assets 660,000 22,000 88,000 Capital 82,500 82,500 K 82,500 797,500 797,500 Assume the following: a) All the noncash assetsof P660,000 were sold for P297,000 b) Kinstructedthe partneship to wite off the P60,500 he borrowed from the Rartnership c) All partnerscoud eliminate any deficits in ther capital accounts through offset or contribution, or both d) All cash was distributed to outside creditors and partners Required: 1. Prepare a Statement of Partnership Liquidation 2. Prepare thejournal entries torecordthe liquidation of the partnership
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