Alex and Bess have been in partnership for many years. The partners, who share profits and losses on a 60:40 basis, respectively,. wish to retire and have agreed to liquidate the business. Liquidation expenses are estimated to be $5,500. At the date the partnership ceases operations, the balance sheet is as follows: Cash Noncash assets $ 51,000 100,000 $ 40,500 60,000 50,500 Liabilities Alex, capital Bess, capital Total assets $ 151,000 Total liabilities and capital $ 151,000 Part A: Prepare journal entries for the following transactions that occurred in chronological order: a. Distributed safe cash payments to the partners. b. Paid $24,300 of the partnership's liabilities. c. Sold noncash assets for $110,500. d. Distributed safe cash payments to the partners. e. Paid remaining partnership liabilities of $16,200. f. Paid $4,400 in liquidation expenses; no further expenses will be incurred. g. Distributed remaining cash held by the business to the partners. Part B: Prepare a final statement of partnership liquidation.
Alex and Bess have been in partnership for many years. The partners, who share profits and losses on a 60:40 basis, respectively,. wish to retire and have agreed to liquidate the business. Liquidation expenses are estimated to be $5,500. At the date the partnership ceases operations, the balance sheet is as follows: Cash Noncash assets $ 51,000 100,000 $ 40,500 60,000 50,500 Liabilities Alex, capital Bess, capital Total assets $ 151,000 Total liabilities and capital $ 151,000 Part A: Prepare journal entries for the following transactions that occurred in chronological order: a. Distributed safe cash payments to the partners. b. Paid $24,300 of the partnership's liabilities. c. Sold noncash assets for $110,500. d. Distributed safe cash payments to the partners. e. Paid remaining partnership liabilities of $16,200. f. Paid $4,400 in liquidation expenses; no further expenses will be incurred. g. Distributed remaining cash held by the business to the partners. Part B: Prepare a final statement of partnership liquidation.
Chapter11: Partnerships: Distributions, Transfer Of Interests, And Terminations
Section: Chapter Questions
Problem 4BCRQ
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I need help finding the answers for c, d, e, f & g.
Transcribed Image Text:No
Transaction
General Journal
Debit
Credit
1
a.
Bess, Capital
5,000
Cash
5,000
2
b
Liabilities
24,300 O
Cash
24,300 O
3
C.
Cash
110,500 O
Alex, Capital
Bess, Capital
Noncash assets
4
d.
Alex, Capital
Bess, Capital
Cash
e.
Liabilities
Cash
6
f.
Alex, Capital
Bess, Capital
Cash
Transcribed Image Text:Alex and Bess have been in partnership for many years. The partners, who share profits and losses on a 60:40 basis, respectively,
wish to retire and have agreed to liquidate the business. Liquidation expenses are estimated to be $5,500. At the date the partnership
ceases operations, the balance sheet is as follows:
$ 51,000
100,000
Liabilities
2$
40,500
60,000
50,500
Cash
Noncash assets
Alex, capital
Bess, capital
Total assets
$ 151,000
Total liabilities and capital
$ 151,000
Part A: Prepare journal entries for the following transactions that occurred in chronological order:
a. Distributed safe cash payments to the partners.
b. Paid $24,300 of the partnership's liabilities.
c. Sold noncash assets for $110,500.
d. Distributed safe cash payments to the partners.
e. Paid remaining partnership liabilities of $16,200.
f. Paid $4,400 in liquidation expenses; no further expenses will be incurred.
g. Distributed remaining cash held by the business to the partners.
Part B: Prepare a final statement of partnership liquidation.
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