Alex and Bess have been in partnership for many years. The partners, who share profits and losses on a 60:40 basis, respectively, wish to retire and have agreed to liquidate the business. Liquidation expenses are estimated to be $6,000. At the date the partnership ceases operations, the balance sheet is as follows: 47,000 138,000 109,000 Cash Noncash assets 230,000 Alex, capital 64,000 Liabilities Bess, capital 294,000 Ttal liabilities and capital 294,000 Total assets$ Part A: Prepare journal entries for the following transactions: a. Distributed safe cash payments to the partners. b. Paid $28,200 of the partnership's liabilities. c. Sold noncash assets for $247,000. d. Distributed safe cash payments to the partners e. Paid remaining partnership liabilities of $18,800. f. Paid $4,700 in liquidation expenses; no further expenses will be incurred. g. Distributed remaining cash held by the business to the partners. Part B: Prepare a final statement of partnership liquidation. Required A Required B 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. Distributed safe cash payments to the partners b. Paid $28,200 of the partnership's liabilities. c. Sold noncash assets for $247,000. d. Distributed safe cash payments to the partners e. Paid remaining partnership liabilities of $18,800 f. Paid $4,700 in liquidation expenses; no further expenses will be incurred. g. Distributed remaining cash held by the business to the partners Show lessA Prepare a final statement of partnership liquidation ALEX AND BESS PARTNERSHIP Statement of Partnership Liquidation Non-cash Assets Cash Liabilities Alex, Capital Bess, Capital Beginning balances Distribution to partners Paid liabilities Sold noncash assets Updated balances Distribution to partners Updated balances Paid liabilities Paid liquidation expenses Updated balances Distribution to partners Closing balances Alex and Bess have been in partnership for many years. The partners, who share profits and losses on a 60:40 basis, respectively, wish to retire and have agreed to liquidate the business. Liquidation expenses are estimated to be $6,000. At the date the partnership ceases operations, the balance sheet is as follows: 47,000 138,000 109,000 Cash Noncash assets 230,000 Alex, capital 64,000 Liabilities Bess, capital 294,000 Ttal liabilities and capital 294,000 Total assets$ Part A: Prepare journal entries for the following transactions: a. Distributed safe cash payments to the partners. b. Paid $28,200 of the partnership's liabilities. c. Sold noncash assets for $247,000. d. Distributed safe cash payments to the partners e. Paid remaining partnership liabilities of $18,800. f. Paid $4,700 in liquidation expenses; no further expenses will be incurred. g. Distributed remaining cash held by the business to the partners. Part B: Prepare a final statement of partnership liquidation. Required A Required B 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. Distributed safe cash payments to the partners b. Paid $28,200 of the partnership's liabilities. c. Sold noncash assets for $247,000. d. Distributed safe cash payments to the partners e. Paid remaining partnership liabilities of $18,800 f. Paid $4,700 in liquidation expenses; no further expenses will be incurred. g. Distributed remaining cash held by the business to the partners Show lessA Prepare a final statement of partnership liquidation ALEX AND BESS PARTNERSHIP Statement of Partnership Liquidation Non-cash Assets Cash Liabilities Alex, Capital Bess, Capital Beginning balances Distribution to partners Paid liabilities Sold noncash assets Updated balances Distribution to partners Updated balances Paid liabilities Paid liquidation expenses Updated balances Distribution to partners Closing balances
