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 $ 63,000 220,000 Liabilities Alex, capital Bess, capital Total liabilities and capital %$446,500 132,000 104, 500 $ 283, 000 Total assets $ 283,000 Part A: Prepare journal entries for the following transactions that occurred in chronological order: a. Distributed safe cash payments to the partners. b. Pald $27,900 of the partnership's llabilities. c. Sold noncash assets for $236,500. d. Distributed safe cash payments to the partners. e. Paid remalning partnership llabilities of $18,600. f. Pald $4,300 in liquidation experises, 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 $ 63,000 220,000 Liabilities Alex, capital Bess, capital Total liabilities and capital %$446,500 132,000 104, 500 $ 283, 000 Total assets $ 283,000 Part A: Prepare journal entries for the following transactions that occurred in chronological order: a. Distributed safe cash payments to the partners. b. Pald $27,900 of the partnership's llabilities. c. Sold noncash assets for $236,500. d. Distributed safe cash payments to the partners. e. Paid remalning partnership llabilities of $18,600. f. Pald $4,300 in liquidation experises, 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,
Chapter21: Partnerships
Section: Chapter Questions
Problem 11BCRQ
Related questions
Question
Please answer required A,B
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:
Liabilities
Alex, capital
Bess, capital
Total liabilities and capital
$ 46,500
132,000
104, s00
$ 283,000
S 63,000
220,000
Cash
Noncash assets
Total assets
$ 283,000
Part A: Prepare journal entries for the following transactions that occurred in chronological order:
a. Distributed safe cash payments to the partners.
b. Paid $27,900 of the partnership's llabilities.
c. Sold noncash assets for $236,500.
d. Distributed safe cash payments to the partners.
e. Paid remalning partnership llabilities of $18.600.
f. Pald $4,300 in liquidation experises; 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.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning