The Field, Brown & Snow are partners and share income and losses equality. The partner decide to liquidate the partnership when their capital balances are as follows: Field, $129,400; Brown, $165,500; and Snow, $153,800. On May 31, the liquidation resulted in a loss of $407,400. QS 12-13 (Algo) Part 3 3. Assume that the partner with a deficit does not reimburse the partnership. Prepare journal entrie (a) to transfer the deficit to the other partners and (b) to record the final disbursement of cash to the partners.
The Field, Brown & Snow are partners and share income and losses equality. The partner decide to liquidate the partnership when their capital balances are as follows: Field, $129,400; Brown, $165,500; and Snow, $153,800. On May 31, the liquidation resulted in a loss of $407,400. QS 12-13 (Algo) Part 3 3. Assume that the partner with a deficit does not reimburse the partnership. Prepare journal entrie (a) to transfer the deficit to the other partners and (b) to record the final disbursement of cash to the partners.
Chapter10: Partnership Taxation
Section: Chapter Questions
Problem 18MCQ
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