The partners in Blossom Company decide to liquidate the firm when the balance sheet shows the following. Blossom Company Balance Sheet May 31, 2027 Assets Liabilities and Owners' Equity Cash $28,000 Notes payable $13,000 Accounts receivable 24,000 Accounts payable 26,500 Allowance for doubtful accounts (1,000) Salaries and wages payable 3,500 Inventory 34,000 A. Jamison, capital 32,000 Equipment 20,000 S. Moyer, capital 22,750 Accumulated depreciation-equipment (5,000 ) P. Roper, capital 2,250 $100,000 $100,000 The partners share income and loss 5:3:2. During the process of liquidation, the following transactions were complete 1. A total of $54,750 was received from converting noncash assets into cash. 2. Gain or loss on realization was allocated to partners. 3. Liabilities were paid in full. 4. P. Roper paid his capital deficiency. 5. Cash was paid to the partners with credit balances. (a) Prepare the entries to record the transactions. (Credit account titles are automatically indented when amount is entered.
The partners in Blossom Company decide to liquidate the firm when the balance sheet shows the following. Blossom Company Balance Sheet May 31, 2027 Assets Liabilities and Owners' Equity Cash $28,000 Notes payable $13,000 Accounts receivable 24,000 Accounts payable 26,500 Allowance for doubtful accounts (1,000) Salaries and wages payable 3,500 Inventory 34,000 A. Jamison, capital 32,000 Equipment 20,000 S. Moyer, capital 22,750 Accumulated depreciation-equipment (5,000 ) P. Roper, capital 2,250 $100,000 $100,000 The partners share income and loss 5:3:2. During the process of liquidation, the following transactions were complete 1. A total of $54,750 was received from converting noncash assets into cash. 2. Gain or loss on realization was allocated to partners. 3. Liabilities were paid in full. 4. P. Roper paid his capital deficiency. 5. Cash was paid to the partners with credit balances. (a) Prepare the entries to record the transactions. (Credit account titles are automatically indented when amount is entered.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The partners in Blossom Company decide to liquidate the firm when the balance sheet shows the following.
Blossom Company
Balance Sheet
May 31, 2027
Assets
Liabilities and Owners' Equity
Cash
$28,000
Notes payable
$13,000
Accounts receivable
24,000
Accounts payable
26,500
Allowance for doubtful accounts
(1,000) Salaries and wages payable
3,500
Inventory
34,000
A. Jamison, capital
32,000
Equipment
20,000
S. Moyer, capital
22,750
Accumulated depreciation-equipment
(5,000 )
P. Roper, capital
2,250
$100,000
$100,000
The partners share income and loss 5:3:2. During the process of liquidation, the following transactions were complete
1.
A total of $54,750 was received from converting noncash assets into cash.
2.
Gain or loss on realization was allocated to partners.
3.
Liabilities were paid in full.
4.
P. Roper paid his capital deficiency.
5.
Cash was paid to the partners with credit balances.
(a)
Prepare the entries to record the transactions. (Credit account titles are automatically indented when amount is entered.
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