The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its business property. A balance sheet drawn up at this time shows the following account balances:Cash - $66,000Noncash - $231,000Liabilities - $46,000Frick, capital (60%) - $135,000Wilson, capital (20%) - $37,000Clarke, capital (20%) - $79,00Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation. The image presents a table structured to document transactions in a general journal. The table headers include:- **No**: Displays the sequential number of the transaction entry.- **Transaction**: Lists the transaction number.- **General Journal**: Describes the accounts affected by each transaction.- **Debit**: Typically, this column would show debit amounts.- **Credit**: Typically, this column would show credit amounts.For each transaction, the accounts involved are listed under the "General Journal" column. Here is the transcription of each entry:1. **Transaction 1**: - Clarke, Capital - Cash2. **Transaction 2**: - Cash - Frick, Capital - Wilson, Capital - Clarke, Capital3. **Transaction 3**: - Liabilities - Cash4. **Transaction 4**: - Frick, Capital - Wilson, Capital - Clarke, Capital - Cash5. **Transaction 5**: - Cash - Frick, Capital - Wilson, Capital - Clarke, Capital - Noncash assets6. **Transaction 6**: - Frick, Capital - Wilson, Capital - Clarke, Capital - CashEach transaction entry documents the flow of resources or obligations between different accounts. Typically, amounts would be listed under the "Debit" and "Credit" columns to specify how each transaction impacts these accounts, but no numerical values are provided in this table. The image displays a table with the following entries:- The first row has two columns filled with the number "7". The third column contains the text "Frick, Capital".- Subsequent rows have the entries: - "Wilson, Capital" - "Clarke, Capital" - "Cash"There are no additional graphs or diagrams within the image.

Particulars Debit Credit 1.ClarkeCapital 10,000 Cash 10,000 2. Cash 66,000 Frick Capital (60%of 28,000) 19,200 Wilson Capital (20%) 6400 Clarke Capital (20%) 6400 Non Cash Assets 98,0003.Liabilities 46,000 Cash 46,000 4.FrickCapital 30,000 WilsonCapital 2,000 ClarkeCapital 34,000 Cash 66,000 5.Cash 53,000 FrickCapital(60%) 48,000 WilsonCapital(20%) 16,000 ClarkeCapital(20%) 16,000 Non cash asset 133,0006.FrickCapital 4800 WilsonCapital 1600 ClarkeCapital 1600 Cash 8000 7.FrickCapital 33,000 WilsonCapital 11,000 ClarkeCapital 11,000 Cash 55,000

Answered: The partnership of Frick, Wilson, and…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its business property. A balance sheet drawn up at this time shows the following account balances:

Cash - $66,000

Noncash - $231,000

Liabilities - $46,000

Frick, capital (60%) - $135,000

Wilson, capital (20%) - $37,000

Clarke, capital (20%) - $79,00

Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation.

The image presents a table structured to document transactions in a general journal. The table headers include:

- **No**: Displays the sequential number of the transaction entry.
- **Transaction**: Lists the transaction number.
- **General Journal**: Describes the accounts affected by each transaction.
- **Debit**: Typically, this column would show debit amounts.
- **Credit**: Typically, this column would show credit amounts.

For each transaction, the accounts involved are listed under the "General Journal" column. Here is the transcription of each entry:

1. **Transaction 1**:
- Clarke, Capital
- Cash

2. **Transaction 2**:
- Cash
- Frick, Capital
- Wilson, Capital
- Clarke, Capital

3. **Transaction 3**:
- Liabilities
- Cash

4. **Transaction 4**:
- Frick, Capital
- Wilson, Capital
- Clarke, Capital
- Cash

5. **Transaction 5**:
- Cash
- Frick, Capital
- Wilson, Capital
- Clarke, Capital
- Noncash assets

6. **Transaction 6**:
- Frick, Capital
- Wilson, Capital
- Clarke, Capital
- Cash

Each transaction entry documents the flow of resources or obligations between different accounts. Typically, amounts would be listed under the "Debit" and "Credit" columns to specify how each transaction impacts these accounts, but no numerical values are provided in this table.

The image displays a table with the following entries:

- The first row has two columns filled with the number "7". The third column contains the text "Frick, Capital".
- Subsequent rows have the entries:
- "Wilson, Capital"
- "Clarke, Capital"
- "Cash"

There are no additional graphs or diagrams within the image.

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

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