• 1

  Record the sale of inventory.

• 2

  Record the cash paid for liquidation expenses.

• 3

  Record the settlement of liabilities.

• 4

  Record the cash received from accounts receivables.

• 5

  Record the distribution of safe cash to partners.

• 6

  Record the cash received from balance accounts receivables.

• 7

  Record the distribution of cash received from sale proceeds of land, building and equipments.

• 8

  Record the settlement of balance liabilities.

• 9

  Record the distribution of cash in hand to partners.

March, April, and may have been in partnership for a number of years. The partners allocate all profits and losses on a 3:3.2 basis, respectively. Recently, each partner has become personally Insolvent and, thus, the partners have decided to liquidate the business in hopes of remedying their personal financial problems. As of September 1, the partnership's balance sheet is as follows: Cash Accounts receivable Inventory Land, building, and equipment (net) Total assets $ 16,eee Liabilities 94,eee March, capital 85, eee April, capital 43, eee May, capital $ 238,eee Total liabilities and capital $ 74, eee 33, eee 80, eee 51, eee $ 238, eee Prepare journal entries for the following transactions: (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. Sold all Inventory for $61,000 cash. b. Pald $9,000 in liquidation expenses. c. Pald $45,000 of the partnership's liabilities. d. Collected $55,000 of the accounts receivable. e. Distributed safe payments of cash; the partners anticipate no further liquidation expenses. f. Sold remaining accounts receivable for 20 percent of face value. g. Sold land, building, and equipment for $22.000. h. Pald all remaining liabilities of the partnership. 1. Distributed cash held by the business to the partners. Answer is complete but not entirely correct. No Transaction General Journal Credit Debit 61.000 1 Cash March, Capital April, Capital May, Capital Inventory ololololo 9.000 9.000 6.000 85,000 2 b. March, Capital April, Capital May, Capital Cash olololol 3,375 3.375 2.250 9.000 Liabilities 45.000 olo Cash 45.000 4 d. 55.000 Cash Accounts receivable OO 55.000 5 April, Capital March, Capital Cash 30,313 15.688 46.000 X 6 f. Cash March, Capital April, Capital May, Capital Accounts receivable OOO OOOOO OOOOO 7.800 11,700 11,700 7.800 39,000 7 9 Cash March, Capital April, Capital May, Capital Land, building and equipment 22.000 7.875 7.875 5.250 43,000 8 h 29.000 Liabilities Cash OO 29.000 9 i March, Capital April, Capital May, Capital Cash OOOO 24.000 x 24,000 16.000 64.000 >>