A Explanation Journal entry for the given transactions Date Accounts and Explanation Post Ref. Debit Amount Credit Amount a. Person B's Capital $ 5,000 Cash $ 5,000 (To record safe cash payment distributed to partners) b. Liabilities $ 30,000 Cash $ 30,000 (To record partnership 's liabilities paid) c. Cash $ 160,000 Person A's Capital $ 6,000 Person B's Capital $ 4,000 Non cash assets $ 150,000 (To record non cash assets sold) d. Person A's Capital $ 93,000 Person B's Capital $ 67,000 Cash $ 160,000 (To record safe cash payments distributed to the partners) e. Liabilities $ 10,000 Cash $ 10,000 (To record the payment of remaining partnership liabilities) f. Person A's Capital $ 2,400 Person B's Capital $ 1,600 Cash $ 4,000 (To record the payment of liquidation expenses) g. Person A's Capital $ 600 Person B's Capital $ 400 Cash $ 1,000 (To record the distribution of remaining cash to partners) Table: (1) The firm has $40,000 liabilities which are to be paid at the time of liquidation and the firm incurs liquidation expenses which are to be paid of $5,000 and the cash available with the firm is $50,000. Hence, after paying these expenses the firm will be left with $5,000 cash balance. Assume that non cash assets are sold for $150,000... B To determine Prepare a final statement of partnership liquidation.

13th Edition

ISBN: 9781266295744

Author: Hoyle

Publisher: MCG

See similar textbooks

Question

Chapter 15, Problem 21P

To determine

Prepare journal entries for the given transactions.

To determine

Prepare a final statement of partnership liquidation.

Expert Solution & Answer

Chapter 15 Solutions

ADV. ACCT CONNECT STAND ALONE

Ch. 15 - Prob. 1Q Ch. 15 - Prob. 2Q Ch. 15 - Prob. 3Q Ch. 15 - Prob. 4Q Ch. 15 - What is the purpose of a statement of liquidation?...Ch. 15 - Prob. 6Q Ch. 15 - Prob. 7Q Ch. 15 - Prob. 8Q Ch. 15 - What is the purpose of a proposed schedule of...Ch. 15 - Prob. 10Q

Knowledge Booster

Recommended textbooks for you

Century 21 Accounting Multicolumn Journal
Accounting
ISBN:9781337679503
Author:Gilbertson
Publisher:Cengage
SWFT Essntl Tax Individ/Bus Entities 2020
Accounting
ISBN:9780357391266
Author:Nellen
Publisher:Cengage
SWFT Comprehensive Volume 2019
Accounting
ISBN:9780357233306
Author:Maloney
Publisher:Cengage
SWFT Comprehensive Vol 2020
Accounting
ISBN:9780357391723
Author:Maloney
Publisher:Cengage
SWFT Corp Partner Estates Trusts
Accounting
ISBN:9780357161548
Author:Raabe
Publisher:Cengage
SWFT Individual Income Taxes
Accounting
ISBN:9780357391365
Author:YOUNG
Publisher:Cengage