Alfredo, Befoe, and Cefoe decided to liquidate their partnership. The accounts prior to liquidation are below: BALANCE-SHEET - Prior to liquidation ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Cash $10,000 Acct-Pay $30,000 A-Rec 60,000 Note-Pay 5,000 Allowance-Bad-Debt -10,000 50,000 Office Supplies 5,000 Inventory 30,000 A-Capital 40,000 Building 80,000 B-Capital 40,000 Acc-Depreciation -30,000 50,000 C-Capital 30,000 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ Total Assets $145,000 Total Liability + Equity $145,000 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- The partners share income and losses 2:2:1. Prepare journal entries for liquidation. Sold A-Rec for $50,000 Sold Inventory for $25,000 Sold Building for $100,000 Sold supplies for $5,000
Alfredo, Befoe, and Cefoe decided to liquidate their
BALANCE-SHEET - Prior to liquidation
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Cash $10,000 Acct-Pay $30,000
A-Rec 60,000 Note-Pay 5,000
Allowance-Bad-Debt -10,000 50,000
Office Supplies 5,000
Inventory 30,000 A-Capital 40,000
Building 80,000 B-Capital 40,000
Acc-
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Total Assets $145,000 Total Liability + Equity $145,000
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
The partners share income and losses 2:2:1. Prepare
Sold A-Rec for $50,000 Sold Inventory for $25,000 Sold Building for $100,000 Sold supplies for $5,000
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