Granger Company wishes to liquidate the firm by distributing the companys cash to the three partners. Prior
Question:
Granger Company wishes to liquidate the firm by distributing the company’s cash to the three partners. Prior to the distribution of cash, the company’s balances are: Cash $66,000; Moffit, Capital (Cr.) $47,000; Nation, Capital (Dr.) $21,000; and Davis, Capital (Cr.) $40,000. The income ratios of the three partners are 3 : 3 : 4, respectively. Prepare the entry to record the absorption of Nation’s capital deficiency by the other partners and the distribution of cash to the partners with credit balances.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Accounting Principles
ISBN: 978-0470534793
10th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Question Posted: