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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

NOWV2 | Online teach X b My Questions | bartleby /ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=D&inprogress%=false E Calculator A summary of the liquidation process whereby cash is distributed to the partners based on the balances in their capital accounts. Statement of Partnership Liquidation After closing the accounts on July 1, prior to liquidating the partnership, the capital account balances of Gold, Porter, and Sims are $27,600, $39,300, and $17,400, respectively. noncash assets, and liabilities total $44,100, $72,900, and $32,700, respectively. Between July 1 and July 29, the noncash assets are sold for $58,500, the liabilities are paid, an- remaining cash is distributed to the partners. The partners share net income and loss in the ratio of 3:2:1. Prepare a statement of partnership liquidation for the period July 1-29. Enter any subtractions (balance deficiencies, payments, cash distributions, divisions of loss, sale of assets) negative…
Q7,8
1
ss
vi.6
6
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, $131,250; Brown, $165,000; and Snow, $153,750. On May 31, the liquidation resulted in a loss of $405,000. 3. Assume that the partner with a deficit does not reimburse the partnership. Prepare journal entries (a) to transfer the deficit to the other partners and (b) to record the final disbursement of cash to the partners.
2
During a liquidation, if a partner's capital account balance drops below zero, what should happen? Multiple Choice The partner with a deficit contributes enough assets to offset the deficit balance. The other partners file a legal suit against the partner with the deficit balance. The partner with the highest capital balance contributes sufficient assets to eliminate the deficit. The deficit balance is removed from the accounting records with only the remaining partners sharing in future gains and losses.