Danks, Vernersen, and Walsh are liquidating their partnership. Before selling the assets and paying the liabilities, the capital balances are Danks $40,000; Vernersen, $26,000; and Walsh, $16,000. The profit-and-loss-sharing ratio has been 3:1:1 for Danks, Vernersen, and Walsh, respectively. The partnership has $65,000 cash, $42,000 non-cash assets, and $25,000 accounts payable. Read the requirements. Requirement 1. Assuming the partnership sells the non-cash assets for $49,000, record the journal entries for the sale of non-cash assets, allocation of gain distribution of remaining cash to partners. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) loss on liquidation, the payment of the outstanding liabilities, and the Journalize the sale of the non-cash assets for $49,000. Date Accounts and Explanation Debit Credit Requirements Dec. 31 1. Assuming the partnership sells the non-cash assets for $49,000, record the journal entries for the sale of non-cash assets, allocation of gain or loss on liquidation, the payment of the outstanding liabilities, and the distribution of remaining cash to partners. 2. Assuming the partnership sells the non-cash assets for $17,000, record the journal entries for the sale of non-cash assets, allocation of gain or loss on liquidation, the payment of the outstanding liabilities, and the distribution of remaining cash to partners. Print Done
Danks, Vernersen, and Walsh are liquidating their partnership. Before selling the assets and paying the liabilities, the capital balances are Danks $40,000; Vernersen, $26,000; and Walsh, $16,000. The profit-and-loss-sharing ratio has been 3:1:1 for Danks, Vernersen, and Walsh, respectively. The partnership has $65,000 cash, $42,000 non-cash assets, and $25,000 accounts payable. Read the requirements. Requirement 1. Assuming the partnership sells the non-cash assets for $49,000, record the journal entries for the sale of non-cash assets, allocation of gain distribution of remaining cash to partners. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) loss on liquidation, the payment of the outstanding liabilities, and the Journalize the sale of the non-cash assets for $49,000. Date Accounts and Explanation Debit Credit Requirements Dec. 31 1. Assuming the partnership sells the non-cash assets for $49,000, record the journal entries for the sale of non-cash assets, allocation of gain or loss on liquidation, the payment of the outstanding liabilities, and the distribution of remaining cash to partners. 2. Assuming the partnership sells the non-cash assets for $17,000, record the journal entries for the sale of non-cash assets, allocation of gain or loss on liquidation, the payment of the outstanding liabilities, and the distribution of remaining cash to partners. Print Done
Chapter4: Gross Income: Concepts And Inclusions
Section: Chapter Questions
Problem 43P
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Transcribed Image Text:Danks, Vernersen, and Walsh are liquidating their partnership. Before selling the assets and paying the liabilities, the capital balances are Danks $40,000; Vernersen, $26,000; and Walsh, $16,000. The profit-and-loss-sharing ratio
has been 3:1:1 for Danks, Vernersen, and Walsh, respectively. The partnership has $65,000 cash, $42,000 non-cash assets, and $25,000 accounts payable.
Read the requirements.
.... .
Requirement 1. Assuming the partnership sells the non-cash assets for $49,000, record the journal entries for the sale of non-cash assets, allocation of gain or loss on liquidation, the payment of the outstanding liabilities, and the
distribution of remaining cash to partners. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)
Journalize the sale of the non-cash assets for $49,000.
Date
Accounts and Explanation
Requirements
Debit
Credit
Dec. 31
1. Assuming the partnership sells the non-cash assets for $49,000, record the journal entries
for the sale of non-cash assets, allocation of gain or loss on liquidation, the payment of the
outstanding liabilities, and the distribution of remaining cash to partners.
2. Assuming the partnership sells the non-cash assets for $17,000, record the journal entries
for the sale of non-cash assets, allocation of gain or loss on liquidation, the payment of the
outstanding liabilities, and the distribution of remaining cash to partners.
Print
Done
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