The ABC Partnership is to be liquidated. The ledger shows the following: Cash $ 70,000 Noncash Assets 220,000 Liabilities 90,000 A, Capital 85,000 B, Capital 90,000 C, Capital 25,000 A,B, and C's income ratios are 5:3:2, respectively. The non-cash assets are sold for $170,000. Instructions Prepare a schedule of liquidation using the following chart: Cash NC assets Liabilities A, Cap B, Cap C, Cap Beg Balance Sale of assets Balance Pay liabilities Balance Distribute cash End Balance Prepare the 4 journal entries to record the liquidation of the partnership
The ABC
Cash $ 70,000
Noncash Assets 220,000
Liabilities 90,000
A, Capital 85,000
B, Capital 90,000
C, Capital 25,000
A,B, and C's income ratios are 5:3:2, respectively. The non-cash assets are sold for $170,000.
Instructions
- Prepare a schedule of liquidation using the following chart:
Cash NC assets Liabilities A, Cap B, Cap C, Cap
Beg Balance
Sale of assets
Balance
Pay liabilities
Balance
Distribute cash
End Balance
- Prepare the 4
journal entries to record the liquidation of the partnership
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