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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
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
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please answer competely required  a,b

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: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.
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
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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