Fred and George have been in partnership for many years. Thepartners, who share profits ad losses on a 60:40 basis,respecitvely, wish to retire and have agreed to liquidate thebusiness. Liquidation expenses are estimated to be 10,000. At thedate the partnership ceases operations, the balance sheet is asfollows:
Cash 100,000
Noncash assets 200,000
Total assets 300,000
Liabilities 80,000
Fred, Capital 100,000
George, Capital 120,000
Total liabilities and capital 300,000
Prepare journal entries for the following transactions:
a. Distributed safe cash payments to the partners.
b. Paid $40,000 of the partnership's liabilities.
c. Sold noncash assets for 220,000.
d. Distibuted safe cash payments to the partners.
e. Paid all remaining partnership liabilities of 40,000.
f. Paid 8,000 in liquidation expenses; no further expenses willbe incurred.
g. Distributed remaining cash held by the business to thepartners.
Prepare a final statement of partnership liquidation.
Fred and George have been in partnership for many years. Thepartners, who share profits ad losses on a 60:40 basis,respecitvely, wish to retire and have agreed to liquidate thebusiness. Liquidation expenses are estimated to be 10,000. At thedate the partnership ceases operations, the balance sheet is asfollows:
Cash 100,000
Noncash assets 200,000
Total assets 300,000
Liabilities 80,000
Fred, Capital 100,000
George, Capital 120,000
Total liabilities and capital 300,000
Prepare journal entries for the following transactions:
a. Distributed safe cash payments to the partners.
b. Paid $40,000 of the partnership's liabilities.
c. Sold noncash assets for 220,000.
d. Distibuted safe cash payments to the partners.
e. Paid all remaining partnership liabilities of 40,000.
f. Paid 8,000 in liquidation expenses; no further expenses willbe incurred.
g. Distributed remaining cash held by the business to thepartners.
Prepare a final statement of partnership liquidation.
Related questions
Fred and George have been in partnership for many years. Thepartners, who share profits and losses on a 60:40 basis,respectively, wish to retire and have agreed to liquidate thebusiness. Liquidation expenses are estimated to be $10,000. At thedate the partnership ceases operations, the balance sheet is asfollows: |
| Cash | $ | 100,000 | Liabilities | $ | 80,000 |
| Noncash assets | 200,000 | Fred, capital | 100,000 | ||
| George, capital | 120,000 | ||||
| Total assets | $ | 300,000 | Total liabilitiesand capital | $ | 300,000 |
| 1. | Prepare journal entries for the following transactions:(Do not round intermediate calculations. If no entry isrequired for a transaction/event, select "No journal entryrequired" in the first account field.) |
| a. | Distributed safe cash paymentsto the partners. |
| b. | Paid $40,000 of thepartnershipâs liabilities. |
| c. | Sold noncash assets for$220,000. |
| d. | Distributed safe cash paymentsto the partners. |
| e. | Paid all remaining partnershipliabilities of $40,000. |
| f. | Paid $8,000 in liquidationexpenses; no further expenses will be incurred. |
| g. | Distributed remaining cash heldby the business to the partners. |
Fred and George have been in partnership for many years. Thepartners, who share profits and losses on a 60:40 basis,respectively, wish to retire and have agreed to liquidate thebusiness. Liquidation expenses are estimated to be $10,000. At thedate the partnership ceases operations, the balance sheet is asfollows: |
| Cash | $ | 100,000 | Liabilities | $ | 80,000 |
| Noncash assets | 200,000 | Fred, capital | 100,000 | ||
| George, capital | 120,000 | ||||
| Total assets | $ | 300,000 | Total liabilitiesand capital | $ | 300,000 |
| 1. | Prepare journal entries for the following transactions:(Do not round intermediate calculations. If no entry isrequired for a transaction/event, select "No journal entryrequired" in the first account field.) |
| a. |
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