AGAK is a partnership owned by Anderson, George, and Krueger, who share profits and losses in the ratio of 1:3:4. The account balances of the partnership at June 30 follow.

Requirements
1. Prepare the June 30 entries to close the revenue, expense, income summary, and drawing accounts.
2. Insert the opening capital balances in the partners€™ capital accounts, post the closing entries to their accounts, and determine each partner€™s ending capital.
3. Prepare the June 30 entries to liquidate the partnership assuming the noncash assets are sold for$118,000.

Transcribed Image Text:

AGAK Adjusted Trial Balance June 30, 2012 Debit S 17,000 114,000 Credit Account Title Cash Noncash assets Notes payable Anderson, capital George, capital Krueger, capital Anderson, drawing George, drawing Krueger, drawing Sales revenue Salary expense Rent expense Totals S 28,000 23,000 40,000 49,000 9,000 29,000 53,000 166,000 76,000 8,000_