Advanced Accounting
14th Edition
ISBN: 9781260247824
Author: Joe Ben Hoyle, Thomas F. Schaefer, Timothy S. Doupnik
Publisher: RENT MCG
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Textbook Question
Chapter 15, Problem 27P
March, April, and May have been in partnership for a number of years. The partners allocate all
Prepare
- a. Sold all inventory for $56,000 cash.
- b. Paid $7,500 in liquidation expenses.
- c. Paid $40,000 of the partnership’s liabilities.
- d. Collected $45,000 of the
accounts receivable . - e. Distributed safe cash balances: the partners anticipate no further liquidation expenses.
- f. Sold remaining accounts receivable for 30 percent of face value.
- g. Sold land, building, and equipment for $17,000.
- h. Paid all remaining liabilities of the partnership.
- i. Distributed cash held by the business to the partners.
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March, April, and May have been in partnership for a number of years. The partners allocate all profits and losses on a 2:3:1 basis, respectively. Recently, each partner has become personally insolvent and, thus, the partners have decided to liquidate the business in hopes of remedying their personal financial problems. As of September 1, the partnership’s balance sheet is as follows:
Prepare journal entries for the following transactions:
Sold all inventory for $56,000 cash.
Paid $7,500 in liquidation expenses.
Paid $40,000 of the partnership’s liabilities.
Collected $45,000 of the accounts receivable.
Distributed safe cash balances; the partners anticipate no further liquidation expenses.
Sold remaining accounts receivable for 30 percent of face value.
Sold land, building, and equipment for $17,000.
Paid all remaining liabilities of the partnership.
Distributed cash held by the business to the partners.
Please help me
March, April, and May have been in partnership for a number of years. The partners allocate all profits and losses on a 2:3:1 basis,
respectively. Recently, each partner has become personally insolvent and, thus, the partners have decided to liquidate the business in
hopes of remedying their personal financial problems. As of September 1, the partnership's balance sheet is as follows:
Cash
Accounts receivable
Inventory
Land, building, and equipment (net)
Total assets
a. Sold all inventory for $73,000 cash.
b. Paid $12,600 in liquidation expenses.
$ 28,000
118,000
97,000
64,000
$ 307,000
c. Paid $57,000 of the partnership's liabilities.
d. Collected $68,000 of the accounts receivable.
Prepare journal entries for the following transactions: (Do not round intermediate calculations. If no entry is required for a
transaction/event, select "No journal entry required" in the first account field.)
Liabilities
March, capital
April, capital
May, capital
Total liabilities and capital
e.…
Chapter 15 Solutions
Advanced Accounting
Ch. 15 - Prob. 1QCh. 15 - Prob. 2QCh. 15 - Prob. 3QCh. 15 - Prob. 4QCh. 15 - What is the purpose of a statement of liquidation?...Ch. 15 - Prob. 1PCh. 15 - Prob. 2PCh. 15 - Prob. 3PCh. 15 - Prob. 4PCh. 15 - A partnership is considering possible liquidation...
Ch. 15 - What is a predistribution plan? a. A list of the...Ch. 15 - Prob. 7PCh. 15 - Prob. 8PCh. 15 - Prob. 9PCh. 15 - Prob. 10PCh. 15 - Prob. 11PCh. 15 - Prob. 12PCh. 15 - Prob. 13PCh. 15 - Prob. 14PCh. 15 - Prob. 15PCh. 15 - Prob. 16PCh. 15 - Prob. 17PCh. 15 - Prob. 18PCh. 15 - Prob. 25PCh. 15 - Prob. 26PCh. 15 - March, April, and May have been in partnership for...Ch. 15 - Prob. 28PCh. 15 - Prob. 29P
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