Please help me March, April, and May have been inpartnership for a number of years. Thepartners allocate all profits and losses on a2:3:1 basis, respectively. Recently, eachpartner has become personally insolventand, thus, the partners have decided toliquidate the business in hopes ofremedying their personal financialproblems. As of September 1, thepartnership's balance sheet is as follows:CashAccounts receivableInventoryLand, building, and equipment (net)Total assetsPrepare journal entries for the followingtransactions: (Do not round intermediatecalculations. If no entry is required for atransaction/event, select "No journal entryrequired" in the first account field.)Sold all inventory for $78,000 cash.Paid $14,100 in liquidation expenses.Paid $62,000 of the partnership's liabilities.Collected $83,000 of the accounts receivable.Distributed safe payments of cash; thepartners anticipate no further liquidationexpenses.Sold remaining accounts receivable for 30percent of face value.Sold land, building, and equipment for$39,000.Paid all remaining liabilities of thepartnership.Distributed cash held by the business to thepartners.$$33,000128,000111,00066,000338,000LiabilitiesMarch, capitalApril, capitalMay, capitalTotal liabilities and capital$$131,00042,00097,00068,000338,000

Liquidation of partnership seems to be a procedure in which a partnership's operations come to an…

March, April, and May have been in partnership for a number of years. The partners allocate all profits and losses on a 2:3:1 basis, respectively. Recently, each partner has become personally insolvent and, thus, the partners have decided to liquidate the business in hopes of remedying their personal financial problems. As of September 1, the partnership's balance sheet is as follows:

March, April, and May have been in partnership for a number of years. The partners allocate all profits and losses on a 2:3:1 basis, respectively. Recently, each partner has become personally insolvent and, thus, the partners have decided to liquidate the business in hopes of remedying their personal financial problems. As of September 1, the partnership's balance sheet is as follows:

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter10: Partnerships: Formation, Operation, And Basis

Section: Chapter Questions

Problem 39P

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