Answered: The partnership of Frick, Wilson, and…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter15: Financial Statements And Year-end Accounting For A Merchandising Business

Section: Chapter Questions

Problem 4TF

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The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its business property. A balance sheet drawn up at this time shows the following account balances:

Cash - $66,000

Noncash - $231,000

Liabilities - $46,000

Frick, capital (60%) - $135,000

Wilson, capital (20%) - $37,000

Clarke, capital (20%) - $79,00

Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation.

No
Transaction
General Journal
Debit
Credit
1
1
Clarke, Capital
Cash
Cash
Frick, Capital
Wilson, Capital
Clarke, Capital
3
Liabilities
Cash
4
4
Frick, Capital
Wilson, Capital
Clarke, Capital
Cash
Cash
Frick, Capital
Wilson, Capital
Clarke, Capital
Noncash assets
Frick, Capital
Wilson, Capital
6.
Clarke, Capital
Cash
2.

7
7
Frick, Capital
Wilson, Capital
Clarke, Capital
Cash

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