From the following, journalize the (a) sale of assets and (b) loss or gain from liquidation realization.

Question:

From the following, journalize the (a) sale of assets and (b) loss or gain from liquidation realization. Given:

Cash............................$ 3,500

Other Assets...................18,000

Liabilities........................4,200

Meade, Capital..................5,300

Carter, Capital..................7,500

Elaine, Capital..................8,600

Partners agreed to share losses or gains in a 4:2:5 ratio and sold other assets for $24,000.

Liquidation
Liquidation in finance and economics is the process of bringing a business to an end and distributing its assets to claimants. It is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations when they are due....