The balance sheet of Ryan and Peter's partnership as of December 31, 2024, is given below. Liabilities Assets Cash Accounts Receivable Furniture Equipment Other assets Total assets O Furniture Equipment Gain on Disposal O Liquidation account Cash Ryan and Peter share profits in the ratio 3:2. They have decided to liquidate the partnership. They sold the furniture and equipment for $71,000. Which of the following is the correct journal entry for the sale transaction? O Cash 71,000 Furniture Equipment Cash Furniture Equipment O Loss on Disposal Cash $15,000 Accounts Payable 12,000 Other liabilities 24,000 Partners' Equity. 40,000 Ryan, Capital 8,000 Peter, Capital $99,000 Total liabilities and partners' equity Furniture Equipment 135,000 64,000 7,000 64,000 24,000 40,000 7,000 71,000 24,000 40,000 24,000 40,000 $15,000 24,000 24,000 47,000 30,000 30,000 $99,000
The balance sheet of Ryan and Peter's partnership as of December 31, 2024, is given below. Liabilities Assets Cash Accounts Receivable Furniture Equipment Other assets Total assets O Furniture Equipment Gain on Disposal O Liquidation account Cash Ryan and Peter share profits in the ratio 3:2. They have decided to liquidate the partnership. They sold the furniture and equipment for $71,000. Which of the following is the correct journal entry for the sale transaction? O Cash 71,000 Furniture Equipment Cash Furniture Equipment O Loss on Disposal Cash $15,000 Accounts Payable 12,000 Other liabilities 24,000 Partners' Equity. 40,000 Ryan, Capital 8,000 Peter, Capital $99,000 Total liabilities and partners' equity Furniture Equipment 135,000 64,000 7,000 64,000 24,000 40,000 7,000 71,000 24,000 40,000 24,000 40,000 $15,000 24,000 24,000 47,000 30,000 30,000 $99,000
Chapter11: Partnerships: Distributions, Transfer Of Interests, And Terminations
Section: Chapter Questions
Problem 48P
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32. Help me selecting the right answer. Thank you
Transcribed Image Text:The balance sheet of Ryan and Peter's partnership as of December 31, 2024, is given below.
Liabilities
Assets
Cash
Accounts Receivable
Furniture
Equipment
Other assets
Total assets
Furniture
Equipment
Gain on Disposal
Liquidation account
Cash
Ryan and Peter share profits in the ratio 3:2. They have decided to liquidate the partnership. They sold the furniture and equipment for
$71,000. Which of the following is the correct journal entry for the sale transaction?
Cash
71,000
Furniture
Equipment
Cash
Furniture
Equipment
Loss on Disposal
Cash
$15,000 Accounts Payable
12,000 Other liabilities
24,000 Partners' Equity.
40,000 Ryan, Capital
8,000 Peter, Capital
$99,000 Total liabilities and partners' equity
Furniture
Equipment
135,000
64,000
7,000
64,000
24,000
40,000
7,000
71,000
24,000
40,000
24,000
40,000
$15,000
24,000
24,000
47,000
30,000
30,000
$99,000
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