roblem Alex and Bess have been in partnership for many years. The partners, who share profits and losses on a 70:30 basis, respectively, wish to retire and have agreed to liquidate the business. Liquidation expenses are estimated to be $7,000. At the date the partnership ceases operations, the balance sheet is as follows: Cash Noncash assets $ 54,000 130,000 Liabilities Alex, capital Bess, capital $ 42,0 91,0 51,0
roblem Alex and Bess have been in partnership for many years. The partners, who share profits and losses on a 70:30 basis, respectively, wish to retire and have agreed to liquidate the business. Liquidation expenses are estimated to be $7,000. At the date the partnership ceases operations, the balance sheet is as follows: Cash Noncash assets $ 54,000 130,000 Liabilities Alex, capital Bess, capital $ 42,0 91,0 51,0
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
please answer competely required a,b
Transcribed Image Text:Problem 15-21 (Algo) (LO 15-2, 15-3, 15-5)
Alex and Bess have been in partnership for many years. The partners, who share
profits and losses on a 70:30 basis, respectively, wish to retire and have agreed to
liquidate the business. Liquidation expenses are estimated to be $7,000. At the date
the partnership ceases operations, the balance sheet is as follows:
$ 54,000
130,000
Cash
Liabilities
$ 42,0
Noncash assets
Alex, capital
Bess, capital
91,0
51,0
$ 184,0
Total assets
$ 184,000
Total liabilities and capital
Part A: Prepare journal entries for the following transactions that occurred in
chronological order:
a. Distributed safe cash payments to the partners.
b. Paid $25,200 of the partnership's liabilities.
c. Sold noncash assets for $142.000.
d. Distributed safe cash payments to the partners.
e. Paid remaining partnership liabilities of $16,800.
f. Paid $5,600 in liquidation expenses; no further expenses will be incurred.
g. Distributed remaining cash held by the business to the partners.
Transcribed Image Text:Required A
Required B
Prepare a final statement of partnership liquidation. (Amounts to be deducted should be
ALEX AND BESS PARTNERSHIP
Statement of Partnerep Liquidation
Non-cash
Assets
Cash
Liabilities Alex, Capital Bess
Beginning balances
Distribution to partners
Paid liabilities
Sold noncash assets
Updated balances
Distribution to partners
Updated balances
Paid liabilities
Paid liquidation expenses
Updated balances
Distribution to partners
Closing balances
< Required A
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