Alex and Bess have been in partnership for many years. The partners, who share profits and...
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Alex and Bess have been in partnership for many years. The partners, who share profits and losses on a 70:30 basis, respectively, wish to retire and have agreed to liquidate the business. Liquidation expenses are estimated to be $7,500. At the date the partnership ceases operations, the balance sheet is as follows: Cash Noncash assets Total assets $ 67,000 260,000 $ 327,000 Liabilities Alex, capital Bess, capital Total liabilities and capital Part A: Prepare journal entries for the following transactions that occurred in chronological order: a. Distributed safe cash payments to the partners. b. Paid $29,100 of the partnership's liabilities. c. Sold noncash assets for $278,500. d. Distributed safe cash payments to the partners. e. Paid remaining partnership liabilities of $19,400. f. Paid $5,900 in liquidation expenses; no further expenses will be incurred. g. Distributed remaining cash held by the business to the partners. Part B: Prepare a final statement of partnership liquidation. Required A Required B Complete this question by entering your answers in the tabs below. $ 48,500 182,000 96,500 $ 327,000 Prepare journal entries for the following transactions that occurred in chronological order: (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. Distributed safe cash payments to the partners. b. Paid $29,100 of the partnership's liabilities. c. Sold noncash assets for $278,500. d. Distributed safe cash payments to the partners. e. Paid remaining partnership liabilities of $19,400. f. Paid $5,900 in liquidation expenses; no further expenses will be incurred. g. Distributed remaining cash held by the business to the partners. Show less A Journal entry worksheet 1 2 3 Record the initial distribution of available cash based on safe capital balance. Note: Enter debits before credits. Transaction a. 4 5 6 7 Record entry General Journal Clear entry < Required A Debit Credit View general Journal Required B > > Journal entry worksheet 1 2 Transaction b. 3 Record the payment of the partnership's liabilities. Note: Enter debits before credits. Record entry 4 5 6 7 General Journal Clear entry < Required A Debit Credit View general Journal Required B > > Journal entry worksheet 1 2 3 Record the sale of noncash assets. Note: Enter debits before credits. Transaction C. 4 5 6 7 Record entry General Journal Clear entry < Required A Debit Credit View general Journal Required B > > Journal entry worksheet 1 Record the entry to distribute safe cash payments to the partners. 1 2 3 Note: Enter debits before credits. Transaction d. Record entry 5 6 7 General Journal Clear entry < Required A Debit Credit View general Journal Required B > > Journal entry worksheet 1 2 3 Note: Enter debits before credits. Transaction e. Record the payment of all remaining partnership liabilities. 4 Record entry 5 General Journal 6 7 Clear entry < Required A Debit Credit View general Journal Required B > > Journal entry worksheet 1 2 3 Record the payment of liquidation expenses. Note: Enter debits before credits. Transaction f. 4 5 Record entry General Journal Clear entry (O 7 < Required A Debit Credit View general Journal Required B > > Journal entry worksheet 1 2 3 4 5 6 Record the entry to distribute remaining cash held by the business to the partners. Note: Enter debits before credits. Transaction g. Record entry General Journal 7 Clear entry < Required A Debit Credit View general Journal Required B > Complete this question by entering your answers in the tabs below. Required A Required B Prepare a final statement of partnership liquidation. (Amounts to be deducted should be entered in minus sign.) Beginning balances Distribution to partners Paid liabilities Sold noncash assets Updated balances Distribution to partners Updated balances Paid liabilities Paid liquidation expenses Updated balances Distribution to partners Closing balances ALEX AND BESS PARTNERSHIP Statement of Partnership Liquidation Cash Non-cash Assets < Required A Liabilities Alex, Capital Bess, Capital Required B > Alex and Bess have been in partnership for many years. The partners, who share profits and losses on a 70:30 basis, respectively, wish to retire and have agreed to liquidate the business. Liquidation expenses are estimated to be $7,500. At the date the partnership ceases operations, the balance sheet is as follows: Cash Noncash assets Total assets $ 67,000 260,000 $ 327,000 Liabilities Alex, capital Bess, capital Total liabilities and capital Part A: Prepare journal entries for the following transactions that occurred in chronological order: a. Distributed safe cash payments to the partners. b. Paid $29,100 of the partnership's liabilities. c. Sold noncash assets for $278,500. d. Distributed safe cash payments to the partners. e. Paid remaining partnership liabilities of $19,400. f. Paid $5,900 in liquidation expenses; no further expenses will be incurred. g. Distributed remaining cash held by the business to the partners. Part B: Prepare a final statement of partnership liquidation. Required A Required B Complete this question by entering your answers in the tabs below. $ 48,500 182,000 96,500 $ 327,000 Prepare journal entries for the following transactions that occurred in chronological order: (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. Distributed safe cash payments to the partners. b. Paid $29,100 of the partnership's liabilities. c. Sold noncash assets for $278,500. d. Distributed safe cash payments to the partners. e. Paid remaining partnership liabilities of $19,400. f. Paid $5,900 in liquidation expenses; no further expenses will be incurred. g. Distributed remaining cash held by the business to the partners. Show less A Journal entry worksheet 1 2 3 Record the initial distribution of available cash based on safe capital balance. Note: Enter debits before credits. Transaction a. 4 5 6 7 Record entry General Journal Clear entry < Required A Debit Credit View general Journal Required B > > Journal entry worksheet 1 2 Transaction b. 3 Record the payment of the partnership's liabilities. Note: Enter debits before credits. Record entry 4 5 6 7 General Journal Clear entry < Required A Debit Credit View general Journal Required B > > Journal entry worksheet 1 2 3 Record the sale of noncash assets. Note: Enter debits before credits. Transaction C. 4 5 6 7 Record entry General Journal Clear entry < Required A Debit Credit View general Journal Required B > > Journal entry worksheet 1 Record the entry to distribute safe cash payments to the partners. 1 2 3 Note: Enter debits before credits. Transaction d. Record entry 5 6 7 General Journal Clear entry < Required A Debit Credit View general Journal Required B > > Journal entry worksheet 1 2 3 Note: Enter debits before credits. Transaction e. Record the payment of all remaining partnership liabilities. 4 Record entry 5 General Journal 6 7 Clear entry < Required A Debit Credit View general Journal Required B > > Journal entry worksheet 1 2 3 Record the payment of liquidation expenses. Note: Enter debits before credits. Transaction f. 4 5 Record entry General Journal Clear entry (O 7 < Required A Debit Credit View general Journal Required B > > Journal entry worksheet 1 2 3 4 5 6 Record the entry to distribute remaining cash held by the business to the partners. Note: Enter debits before credits. Transaction g. Record entry General Journal 7 Clear entry < Required A Debit Credit View general Journal Required B > Complete this question by entering your answers in the tabs below. Required A Required B Prepare a final statement of partnership liquidation. (Amounts to be deducted should be entered in minus sign.) Beginning balances Distribution to partners Paid liabilities Sold noncash assets Updated balances Distribution to partners Updated balances Paid liabilities Paid liquidation expenses Updated balances Distribution to partners Closing balances ALEX AND BESS PARTNERSHIP Statement of Partnership Liquidation Cash Non-cash Assets < Required A Liabilities Alex, Capital Bess, Capital Required B >
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a Distributed safe cash payments to the partners Partner Capital Alex 67000 070 46900 Partner Capita... View the full answer
Related Book For
Advanced Accounting
ISBN: 9781260247824
14th Edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
Posted Date:
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