Prepare journal entries for the following transactions: a. Distributed safe cash payments to the partners. b. Paid $27,900 of the partneship's liabilities. c. Sold noncash assets for $236,500. d. Distributed safe cash payments to the partners. e. Paid remaining partnership liabilities of $18,600. f. Paid $4,300 in liquidation expenses; no further expenses will be incurred. g. Distributed remaining cash held by the business to the partners. Part B: Prepare a final statement of partnership liquidation.

Question

 Alex and Bess have been in partnership for many years. The partners, who share profits and losses on a 60:40 basis, respectively, wish to retire and have agreed to liquidate the busines. Liquidation expenses are estimated to be $5,500. At the date the partnership ceases operations, the balance sheet is as follows:

Cash                                          $63,000

Noncash assets                           220,000

  Total                                             $283,000

Liabilities                                     $46,500                                 

Alex, capital                                  132,000

Bess, capital                                 104,500

Total liabilities and capital                $283,000

Part A: Prepare journal entries for the following transactions:

a. Distributed safe cash payments to the partners.

b. Paid $27,900 of the partneship's liabilities.

c. Sold noncash assets for $236,500.

d. Distributed safe cash payments to the partners.

e. Paid remaining partnership liabilities of $18,600.

f. Paid $4,300 in liquidation expenses; no further expenses will be incurred.

g. Distributed remaining cash held by the business to the partners.

Part B: Prepare a final statement of partnership liquidation.

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Accounting

Financial Accounting

Accounting Vs Bookkeeping

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: Head owns 80% of Shoulders. Head reports Dividends of $300,000. Shoulders reports Net Income of $500...

A: As posted multiple sub parts we are answering only first three sub parts kindly repost the unanswere...

Q: Riley acquired a non-current asset on 1 October 20W9 (ie 10 years before 20X9) at a cost of $100,000...

A: We have the following information: Riley acquired a non-current asset on 1 October 20W9 (ie 10 year...

Q: Which of the following statements is (are) not consistentwith generally accepted accounting principl...

A: Click to see the answer

Q: Milford Corporation pays its employees on the fifteenth of each month. Accrued, but unpaid,salaries ...

A: Adjusting journal entry: To record any unrecognized income or expenses for the period company made a...

Q: Wexler, Inc.’s income statement showed total expenses for the year to be $50,000. If the com-pany’s ...

A: Net income: It refers to the excess of a company's sales revenue over its operating expenses and oth...

Q: A company could sell a building for $250,000 or lease it for $2,500 per month. What would need to be...

A: Differential Analysis:   Differential analysis refers to the analysis of differential revenue that c...

Q: What is meant by the term unearned revenue? Where should an unearned revenue account appear in the f...

A: Revenue: It refers to the amount earned by a business from selling its goods or services to the cust...

Q: Gamma purchases a motor vehicle on 30 September 20X1 for $15,000 on credit. Gamma has a policy of de...

A: We have the following information Gamma purchases a motor vehicle on 30 September 20X1 for $15,000 ...

Q: Freeman Furnishings has summarized its data as shown. Direct labor hours will be used as the activit...

A: Managerial accounting is the branch of accounting used to generate reports for the purpose of decisi...

Q: Use the following information to determine the break-even point in sales dollars: Unit sales 49,200 ...

A: Break-even point in the sales dollars states the level of production or  the aggregate units produce...

Q: Required information [The following information applies to the questions displayed below.] Aztec Ind...

A: Overhead rate:  Overhead rate calculated based Machine hours or Direct labor hours, in given questio...

Q: Required information [The following information applies to the questions displayed below.] Aztec Ind...

A: Activity based costing: Activity based costing is a costing method used by the company to assign the...

Q: Prepare a contribution margin format income statement China Imports, Inc.,sold 18,000 units in May. ...

A: Contribution margin:   Contribution margin refers to the process or theory that is used to judge the...

Q: What does it mean when ROI has decreased even though net income hasincreased?

A: Return on investment (ROI): This financial ratio evaluates how efficiently the assets are used in ea...

Q: Which of the following is provided by a trial balance inwhich total debits equal total credits?a. Pr...

A: Trial balance: Trial balance is a statement contains all ledger accounts balances.

Q: Indicate all correct answers. In the accounting cycle:a. Transactions are posted before they are jou...

A: Click to see the answer

Q: You would like to retire in 50 years as a millionaire. If you have $1000 today, what rate of return ...

A: Given: Number of years = 50  Future value = $1,000,000 Present value = $1,000  

Q: Vidhi is investing in some rental property in Collegeville and is investigating her income from the ...

A: Given:

Q: Green Company purchased a piece of machinery on credit for $10,000. Briefly state the way thistransa...

A: Accounting equation: It is consist of three components which are as follow: Assets Liabilities Equi...

Q: Scope Limitations. D. Brady has been engaged as the auditor of Patriot Company and is currently plan...

A: a.  

Q: Fill in the missing items for the following inventories;   Beginning balance                        ...

A: Closing balance of inventories is the beginning inventories, plus any additions made during the year...

Q: Explain how liquidity measures can be influenced by the inventory cost flow assumption used.

A: Inventory Cost Flow Assumptions means the different techniques of measurement of cost of inventory s...

Q: CVP analysis—effects of change in cost structure; breakeven Austin, Inc.,produces small-scale replic...

A: Hello, since your question has multiple parts we will solve the first question for you. If you want ...

Q: SEC Independence and Nonaudit Services. Is independence impaired on these SEC filing audits accordin...

A: Securities and Exchange Commission (SEC):   It is a government body established to safeguard the inv...

Q: Transactions are first journalized and then posted to ledger accounts. In this exercise, however,you...

A: Journal entry: It is prepared to record the financial and non financial transaction of the business ...

Q: Dorsey Company manufactures three products from a common input in a joint processing operation. Join...

A: Financial advantage (disadvantage) of further processing = Incremental Revenue from further Processi...

Q: Equipment with an estimated market value of $29,149 is offered for sale at $45,171. The equipment is...

A: Note: When any assets is purchased then that assets should always be recorded in the books at acquis...

Q: Complete the information in the cost computations shown here:

A: Click to see the answer

Q: Perpetual Inventory Using FIFO The following units of a particular item were available for sale duri...

A: Perpetual system: Perpetual system is one of the systems to record the inventory flow. It calculates...

Q: An example of a period cost isa. the salary of a production supervisor.b. the raw materials used in ...

A: Period cost: It can be defined as the cost that is not directly related to the process of production...

Q: Which of the following would be considered the most significant problem for internal auditif the chi...

A: Audit: Audit is the process of verification of the compliance of the financial statements. It proces...

Q: Afler the accounts have been adjusted at December 31, the end of the fiscal year, the following bala...

A: Trial Balance: Trial balance is a statement in which closing balance of all ledger accounts are tran...

Q: Find for Armstrong Company and Blair Company : Asset Turnover Ratios - (a) Fixed Asset turnover (ti...

A: Ratio analysis helps in understanding financial statements. Ratio analysis gives a knowledge of the ...

Q: Compute Aztec's departmental overhead rate for the mixing department based on machine hours.

A: Answer:   $0.75 per MH

Q: 15. Stevens owns 60% of David. In 2020 Stevens has net income of $80,000 and David has net income of...

A: A Non-controlling interest is also considered as a minority interest. This is the portion of subsidi...

Q: please very soon full explanation

A: Interest is the amount received or paid over and above the principal amount. It is a kind of fee pai...