P12-3C The partners in Pawnee Company decide to liquidate the firm when the balance sheet shows the following. PAWNEE COMPANY Balance Sheet April 30, 2012 Assets Liabilities and Owners' Equity $16,000 24,000 Cash $28,000 19,000 (1,000) 28,000 17,000 (10,000) $81,000 Notes payable Accounts payable Salaries and Wages payable Neeley, capital Hannah, capital Doonan, capital Accounts receivable Allowance for doubtful accounts Inventory Equipment Accumulated depreciation-equipment 2,000 23,000 11,200 4,800 $81,000 Total Total The partners share income and loss 5:3:2. During the process of liquidation, the transactions be- low were completed in the following sequence. 1. A total of $43,000 was received from converting noncash assets into cash. 2. Liabilities were paid in full. 3. Cash was paid to the partners with credit balances. Instructions (a) Prepare a cash distribution schedule. (b) Prepare the entries to record the transactions. (c) Post to the cash and capital accounts.

P12-3C The partners in Pawnee Company decide to liquidate the firm when the balance sheet shows the following. PAWNEE COMPANY Balance Sheet April 30, 2012 Assets Liabilities and Owners' Equity $16,000 24,000 Cash $28,000 19,000 (1,000) 28,000 17,000 (10,000) $81,000 Notes payable Accounts payable Salaries and Wages payable Neeley, capital Hannah, capital Doonan, capital Accounts receivable Allowance for doubtful accounts Inventory Equipment Accumulated depreciation-equipment 2,000 23,000 11,200 4,800 $81,000 Total Total The partners share income and loss 5:3:2. During the process of liquidation, the transactions be- low were completed in the following sequence. 1. A total of $43,000 was received from converting noncash assets into cash. 2. Liabilities were paid in full. 3. Cash was paid to the partners with credit balances. Instructions (a) Prepare a cash distribution schedule. (b) Prepare the entries to record the transactions. (c) Post to the cash and capital accounts.

Name: P12-3CPrepare entries and schedule ofcash payments in liquidation ofa
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Description: P12-3CPrepare entries and schedule ofcash payments in liquidation ofa partnershipThe partners in Pawnee Company decide to liquidate the firm when the balance sheetshows the following.(SO 5)PAWNEE COMPANYGLSBalance SheetApril 30, 2012AssetsLiabilitie

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter19: Accounting For Partnerships

Section: Chapter Questions

Problem 5CE

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