Fitzee, Chesher and Klotia have a partnership. They share income on the basis of the following ratio: 2:3:5. Each partner has the following capital balances respectively $220,000, $250,000, and $145,000. They decided to liquidate their business on July 3 because they wanted to pursue other interests. They had a big liquidation sale and they sold all non-cash assets for $445,000. They have the following accounts: Cash $200,000 Supplies $50,000 Equipment $150,000 Truck $65,000 Building $300,000 AP $200,000 Prepare all of the journal entries to close this business General Journal Page Particulars Credits ate PR Debits
Fitzee, Chesher and Klotia have a partnership. They share income on the basis of the following ratio: 2:3:5. Each partner has the following capital balances respectively $220,000, $250,000, and $145,000. They decided to liquidate their business on July 3 because they wanted to pursue other interests. They had a big liquidation sale and they sold all non-cash assets for $445,000. They have the following accounts: Cash $200,000 Supplies $50,000 Equipment $150,000 Truck $65,000 Building $300,000 AP $200,000 Prepare all of the journal entries to close this business General Journal Page Particulars Credits ate PR Debits
Chapter4: Gross Income: Concepts And Inclusions
Section: Chapter Questions
Problem 43P
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Transcribed Image Text:Fitzee, Chesher and Klotia have a partnership. They share income on the basis of the
following ratio: 2:3:5. Each partner has the following capital balances respectively
$220,000, $250,000, and $145,000. They decided to liquidate their business on July 3
because they wanted to pursue other interests. They had a big liquidation sale and they
sold all non-cash assets for $445,000. They have the following accounts:
Cash
$200,000
Supplies
$50,000
Equipment
$150,000
Truck
$65,000
Building
$300,000
AP
$200,000
Prepare all of the journal entries to close this business
General Journal
Page
Date
Particulars
PR
Debits
Credits
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ISBN:
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Author:
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Publisher:
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