John, Jake, and Joe are partners with capital accounts of $90,000, $78,000, and $64,000 respectively. They share

Question:

John, Jake, and Joe are partners with capital accounts of $90,000, $78,000, and $64,000 respectively. They share profits and losses in the ratio of 30:40:30. When the partners decide to liquidate, the business has $70,000 in cash, noncash assets totaling $260,000, and $98,000 in liabilities. The noncash assets are sold for $270,000, and the creditors are paid.

Required:

A. Prepare a schedule of partnership liquidation.

B. Prepare journal entries to record each of the following transactions.

(1) The sale of the noncash assets.

(2) The payment to the creditors.

(3) The distribution of cash to the partners.

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...