Lewis, Zapata, and Fowler share equally in net income and net losses. After the partnership sells all assets for cash, divides the losses on realization, and pays the liabilities, the balances in the capital accounts are as follows: Lewis, $26,300 Cr.; Zapata, $57,900 Cr.; Fowler, $16,800 Dr. a. What term is applied to the debit balance in Fowler's capital account? Deficiency b. What is the amount of cash on hand? $ c. Journalize the transaction that must take place for Lewis and Zapata to receive cash in the liquidation process equal to their capital account balances. If an amount box does not require an entry, leave it blank.
Liquidating Partnerships—Capital Deficiency
Lewis, Zapata, and Fowler share equally in net income and net losses. After the
a. What term is applied to the debit balance in Fowler's capital account?
Deficiency
b. What is the amount of cash on hand?
$
c. Journalize the transaction that must take place for Lewis and Zapata to receive cash in the liquidation process equal to their capital account balances. If an amount box does not require an entry, leave it blank.
| Cash | |||
| Fowler, Capital |
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 1 images
