ADVANCED ACCOUNTING-EBOOK ACCESS
14th Edition
ISBN: 9781264157068
Author: Hoyle
Publisher: MCG
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Textbook Question
Chapter 15, Problem 27P
March, April, and May have been in
Prepare
- a. Sold all inventory for $56,000 cash.
- b. Paid $7,500 in liquidation expenses.
- c. Paid $40,000 of the partnership’s liabilities.
- d. Collected $45,000 of the accounts receivable.
- e. Distributed safe cash balances: the partners anticipate no further liquidation expenses.
- f. Sold remaining accounts receivable for 30 percent of face value.
- g. Sold land, building, and equipment for $17,000.
- h. Paid all remaining liabilities of the partnership.
- i. Distributed cash held by the business to the partners.
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March, April, and May have been in partnership for a number of years. The partners allocate all profits and losses on a 2:3:1 basis, respectively. Recently, each partner has become personally insolvent and, thus, the partners have decided to liquidate the business in hopes of remedying their personal financial problems. As of September 1, the partnership’s balance sheet is as follows:
Prepare journal entries for the following transactions:
Sold all inventory for $56,000 cash.
Paid $7,500 in liquidation expenses.
Paid $40,000 of the partnership’s liabilities.
Collected $45,000 of the accounts receivable.
Distributed safe cash balances; the partners anticipate no further liquidation expenses.
Sold remaining accounts receivable for 30 percent of face value.
Sold land, building, and equipment for $17,000.
Paid all remaining liabilities of the partnership.
Distributed cash held by the business to the partners.
Please help me
March, April, and May have been in partnership for a number of years. The partners allocate all profits and losses on a 2:3:1 basis,
respectively. Recently, each partner has become personally insolvent and, thus, the partners have decided to liquidate the business in
hopes of remedying their personal financial problems. As of September 1, the partnership's balance sheet is as follows:
Cash
Accounts receivable
Inventory
Land, building, and equipment (net)
Total assets
a. Sold all inventory for $73,000 cash.
b. Paid $12,600 in liquidation expenses.
$ 28,000
118,000
97,000
64,000
$ 307,000
c. Paid $57,000 of the partnership's liabilities.
d. Collected $68,000 of the accounts receivable.
Prepare journal entries for the following transactions: (Do not round intermediate calculations. If no entry is required for a
transaction/event, select "No journal entry required" in the first account field.)
Liabilities
March, capital
April, capital
May, capital
Total liabilities and capital
e.…
Chapter 15 Solutions
ADVANCED ACCOUNTING-EBOOK ACCESS
Ch. 15 - Prob. 1QCh. 15 - Prob. 2QCh. 15 - Prob. 3QCh. 15 - Prob. 4QCh. 15 - What is the purpose of a statement of liquidation?...Ch. 15 - Prob. 1PCh. 15 - Prob. 2PCh. 15 - Prob. 3PCh. 15 - Prob. 4PCh. 15 - A partnership is considering possible liquidation...
Ch. 15 - What is a predistribution plan? a. A list of the...Ch. 15 - Prob. 7PCh. 15 - Prob. 8PCh. 15 - Prob. 9PCh. 15 - Prob. 10PCh. 15 - Prob. 11PCh. 15 - Prob. 12PCh. 15 - Prob. 13PCh. 15 - Prob. 14PCh. 15 - Prob. 15PCh. 15 - Prob. 16PCh. 15 - Prob. 17PCh. 15 - Prob. 18PCh. 15 - Prob. 25PCh. 15 - Prob. 26PCh. 15 - March, April, and May have been in partnership for...Ch. 15 - Prob. 28PCh. 15 - Prob. 29P
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- March, April, and May have been in partnership for a number of years. The partners allocate all profits and losses on a 4:2:2 basis, respectively. Recently, each partner has become personally insolvent and, thus, the partners have decided to liquidate the business in hopes of remedying their personal financial problems. As of September 1, the partnership's balance sheet is as follows: $ 31,000 $ 108,000 59,000 95,000 66,000 Cash Liabilities March, capital April, capital May, capital Total liabilities and capital Accounts receivable Inventory Land, building, and equipment (net) 124,000 100,000 73,000 Total assets $ 328,000 $ 328,000 Prepare journal entries for the following transactions: (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) a. Sold all inventory for $76,000 cash. b. Paid $13,500 in liquidation expenses. c. Paid $60,000 of the partnership's liabilities. d. Collected…arrow_forwardMartha Wheaton, Bess Chen, and Sam Smith were partners in an urban Calgary tea shop called Wake and showed the following account balances as of December 31, 2023: Account balances December 31, 2023 Due to difficulties, the partners decided to liquidate the partnership. The land and building were sold for $700,000 on January 1, 2024. The partners share any profit (loss) in the ratio of 2:1:1 for Wheaton, Chen, and Smith, respectively. Required: Complete the schedule. Prepare the entry to distribute the remaining cash to the partners assuming any deficiencies are paid by the partners. (Negative answers should be indicated by a minus sign.) Account balances December 31, 2023 Sale of land and building. Balance Payment of liabilities Balance Martha Accum. Deprec. Building Bess Chen, Wheaton, Accounts Payable Sam Smith, Capital Land Capital Capital Cash Building $191,000 $838,000 $487,000 $215,000 $135,000 $330,000 $(59,000) $351,000 Absorption of deficiency Balance Accum. Building Deprec.…arrow_forwardAnthony and Erin start a partnership with capital contributions of $64,300 and $94,800, respectively. Over the course of the year, Anthony withdraws $2,300 from the business in order to meet his personal expenses. Which of the following is the correct journal entry to close Anthony's withdrawals account at the end of the year? O Anthony, Withdrawals 2,300 Anthony, Capital O Anthony, Withdrawals Cash 0 0 0 O Anthony, Capital Anthony, Withdrawals O Cash Anthony, Withdrawals 2,300 2,300 2,300 2,300 2,300 2,300 2,300arrow_forward
- Godoarrow_forwardAfter the accounts are closed on April 10, prior to liquidating the partnership, the capital accounts of Zach Fairchild, Austin Lowes, and Amber Howard are $34,000, $6,000, and $26,500, respectively. Cash and noncash assets total $8,000 and $66,500, respectively. Amounts owed to creditors total $8,000. The partners share income and losses in the ratio of 1:1:2. Between April 10 and April 30, the noncash assets are sold for $35,300, the partner with the capital deficiency pays the deficiency to the partnership, and the liabilities are paid. Required: 1. Prepare a statement of partnership liquidation, indicating (a) the sale of assets and division of loss, (b) the payment of liabilities, (c) the receipt of the deficiency (from the appropriate partner), and (d) the distribution of cash. Enter any subtractions (balance deficiencies, payments, cash distributions, divisions of loss, sale of assets) as negative numbers using a minus sign. If there is no amount or an amount is zero, enter…arrow_forwardAfter the accounts are closed on April 10, prior to liquidating the partnership, the capital accounts of Zach Fairchild, Austin Lowes, and Amber Howard are $37,100, $6,600, and $30,000, respectively. Cash and noncash assets total $8,800 and $74,100, respectively. Amounts owed to creditors total $9,200. The partners share income and losses in the ratio of 1:1:2. Between April 10 and April 30, the noncash assets are sold for $39,300, the partner with the capital deficiency pays the deficiency to the partnership, and the liabilities are paid. Required: 1. Prepare a statement of partnership liquidation, indicating (a) the sale of assets and division of loss, (b) the payment of liabilities, (c) the receipt of the deficiency (from the appropriate partner), and (d) the distribution of cash. Enter any subtractions (balance deficiencies, payments, cash distributions, divisions of loss, sale of assets) as negative numbers using a minus sign. If there is no amount or an amount is zero, enter…arrow_forward
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