College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN: 9781305666160
Author: James A. Heintz, Robert W. Parry
Publisher: Cengage Learning
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Chapter 19, Problem 5SEB
To determine
Prepare the entries for the sale and the allocation of gain.
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Immediately prior to the process of liquidation, partners M, N, and O have capital balances of $70,000, $20,000, and $30,000 respectively. There is a cash balance of $10,000, noncash assets total $160,000, and liabilities total $50,000. The partners share net income and losses in the ratio of 2:2:1.
Journalize the entries to record the liquidation outlined below, using “Assets” as the account title for the noncash assets and “Liabilities” as the account title for all creditors' claims.
(a)
Sold the noncash assets for $80,000 in cash.
(b)
Divided the loss on realization.
(c)
Paid the liabilities.
(d)
Received cash from the partner with the deficiency.
(e)
Distributed the cash to the partners.
(for each Journal Entry, omit the 4th journalizing step of providing a brief explanation)
JOURNAL
Date Post. DR CR
(a)…
A balance sheet for the partnership of A, B,
and C, who share profits 2:1:1, shows the
following balances just before liquidation:
Cash: P48,000
Other assets: 238,000
Liabilities: 80,000
A, Capital: 88,000
B, Capital: 62,000
C, Capital: 56,000
On the first month of liquidation, certain non-
cash assets were sold resulting to a loss of
P23,000. Liquidation expenses of P4,000
were paid, and additional liquidation expenses
of P3,200 are withheld to anticipate payment
before liquidation is completed. After
creditors were paid, partner B received
P13,000 on the initial installment.
Determine total payment to partners on the
initial installment.
A balance sheet for the partnership of A, B, and C, who
share profits 2:1:1, shows the following balances just
before liquidation:
Cash: P48,000
Other assets: 238,000
Liabilities: 80,000
A, Capital: 88,000
B, Capital: 62,000
C, Capital: 56,000
On the first month of liquidation, certain non-cash assets
were sold resulting to a loss of P23,000. Liquidation
expenses of P4,000 were paid, and additional liquidation
expenses of P3,200 are withheld to anticipate payment
before liquidation is completed. After creditors were paid,
partner B received P13,000 on the initial installment.
Determine the total book value of the non-cash assets on
the first month.
Chapter 19 Solutions
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Ch. 19 - Prob. 1TFCh. 19 - Prob. 2TFCh. 19 - Prob. 3TFCh. 19 - Prob. 4TFCh. 19 - Prob. 5TFCh. 19 - Prob. 1MCCh. 19 - Prob. 2MCCh. 19 - Prob. 3MCCh. 19 - Prob. 4MCCh. 19 - Prob. 5MC
Ch. 19 - Prob. 1CECh. 19 - Prob. 2CECh. 19 - Prob. 3CECh. 19 - Prob. 4CECh. 19 - Prob. 5CECh. 19 - Prob. 1RQCh. 19 - Prob. 2RQCh. 19 - Prob. 3RQCh. 19 - Prob. 4RQCh. 19 - Prob. 5RQCh. 19 - Prob. 6RQCh. 19 - Prob. 7RQCh. 19 - Prob. 8RQCh. 19 - Prob. 9RQCh. 19 - Prob. 1SEACh. 19 - Prob. 2SEACh. 19 - Prob. 3SEACh. 19 - Prob. 4SEACh. 19 - ENTRIES: PARTNERSHIP LIQUIDATION On liquidation of...Ch. 19 - Prob. 6SPACh. 19 - Prob. 7SPACh. 19 - Prob. 8SPACh. 19 - Prob. 9SPACh. 19 - STATEMENT OF PARTNER SHIP LIQUIDATION WITH LOSS...Ch. 19 - Prob. 1SEBCh. 19 - Prob. 2SEBCh. 19 - Prob. 3SEBCh. 19 - Prob. 4SEBCh. 19 - Prob. 5SEBCh. 19 - Prob. 6SPBCh. 19 - Prob. 7SPBCh. 19 - ENTRIES FOR DISSOLUTION OF PARTNERSHIP Cummings...Ch. 19 - Prob. 9SPBCh. 19 - STATEMENT OF PARTNER SHIP LIQUIDATION WITH LOSS...Ch. 19 - Prob. 1MYWCh. 19 - Prob. 1ECCh. 19 - Prob. 1MPCh. 19 - Prob. 1CPCh. 19 - Prob. 1COP
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