The Danica, Gaga & Oprah partnership was begun with investments by the partners as follows: Danica,$190; Gaga, $340; and Oprah, $550. Danica, Gaga, and Oprah share income and losses in a 1:1:2 ratio (inpercents: Danica, 25%; Gaga, 25%; and Oprah, 50%). The partners decide to liquidate the partnership aftera few months. On July 31, after all assets were sold and all creditors were paid, only $80 in partnershipcash remain. Assume that Danica cannot cover the deficit. Prepare journal entries (a) to transfer the deficit of Danica to the other partners and (b) to record the final disbursement of cash to partners.

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 4CE
icon
Related questions
Question

The Danica, Gaga & Oprah partnership was begun with investments by the partners as follows: Danica,
$190; Gaga, $340; and Oprah, $550. Danica, Gaga, and Oprah share income and losses in a 1:1:2 ratio (in
percents: Danica, 25%; Gaga, 25%; and Oprah, 50%). The partners decide to liquidate the partnership after
a few months. On July 31, after all assets were sold and all creditors were paid, only $80 in partnership
cash remain. Assume that Danica cannot cover the deficit. Prepare journal entries (a) to transfer the deficit of Danica
to the other partners and (b) to record the final disbursement of cash to partners.

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 3 images

Blurred answer
Knowledge Booster
Partners and Partnerships
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
SWFT Individual Income Taxes
SWFT Individual Income Taxes
Accounting
ISBN:
9780357391365
Author:
YOUNG
Publisher:
Cengage
SWFT Essntl Tax Individ/Bus Entities 2020
SWFT Essntl Tax Individ/Bus Entities 2020
Accounting
ISBN:
9780357391266
Author:
Nellen
Publisher:
Cengage
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
CONCEPTS IN FED.TAX., 2020-W/ACCESS
CONCEPTS IN FED.TAX., 2020-W/ACCESS
Accounting
ISBN:
9780357110362
Author:
Murphy
Publisher:
CENGAGE L
SWFT Corp Partner Estates Trusts
SWFT Corp Partner Estates Trusts
Accounting
ISBN:
9780357161548
Author:
Raabe
Publisher:
Cengage