=+EX 12-20 Distribution of cash upon liquidation obj. 4

✔ Bradley, $33,500 claim is to be paid in cash. Cohen and Cobb are to share equally in the net income or net loss of the new partnership.

Journalize the entries to record

(a) the adjustment of the assets to bring them into agreement with current market prices and

(b) the withdrawal of Gilbert from the partnership.

Matthews, Williams, and Shen share equally in net income and net losses. After the partnership sells all assets for cash, divides the losses on realization, and pays the liabilities, the balances in the capital accounts are as follows: Matthews, $28,000 Cr.;

Williams, $62,500 Cr.; Shen, $18,000 Dr.