Caruso, Evans, and Weisman are partners in a retail lighting store. They share income and losses in

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Caruso, Evans, and Weisman are partners in a retail lighting store. They share income and losses in the ratio of 2:2:1, respectively. The partners have agreed to liquidate the partnership. Here is the partnership balance sheet before the liquidation:


Caruso, Evans, and Weisman are partners in a retail lighting


The other assets were sold on September 1, 2010, for $720,000. Accounts payables were paid on September 4, 2010. The remaining cash was distributed to the partners on September 11, 2010.

Required
1. Prepare a statement of Liquidation.
2. Prepare the following entries in journal form:
a. The sale of the other assets,
b. Payment of the accounts payable,
c. The distribution of the loss from realization, and
d. The distribution to the partners of the remaining cash.

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...
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Principles Of Financial Accounting

ISBN: 9780538755160

11th Edition

Authors: Belverd E Needles, Marian Powers

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