AP12-3A The partners in New Yorker Company decide to liquidate the firm when the balance sheet shows the following. NEW YORKER COMPANY Balance Sheet May 31, 2010 Assets Liabilities and Owners' Equity Cash $27,200 Notes payable $13,390 Accounts receivable 24,900 Accounts payable 26,910 Allowance for doubtful accounts (1,350) Wages payable 3,990 Merchandise inventory 34,650 M. Mantle, Capital 32,990 Equipment 21,100 W. Mays, Capital 21,054 Accumulated depreciation-equipment (5,430) D. Snider, Capital 2,736 Total $101,070 Total $101,070 The partners share income and loss 5 : 3 : 2. During the process of liquidation, the following transactions were completed in the following sequence. 1. A total of $56,590 was received from converting noncash assets into cash. 2. Gain or loss on realization was allocated to partners. 3. Liabilities were paid in full. 4. D. Snider paid his capital deficiency. 5. Cash was paid to the partners with credit balances. Post to the cash and capital accounts. Cash Bal. (3) (1) (5) (4) M. Mantle, Capital (2) Bal. (5) W. Mays, Capital (2) Bal. (5) D. Snider, Capital (2) Bal. (4) Assume that Snider is unable to pay the capital deficiency.(For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.) 1. Prepare the entry to allocate Snider's debit balance to Mantle and Mays. 2. Prepare the entry to record the final distribution of cash. Account/Description Debit Credit 1. 2. Prepare the entries to record the transactions. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.) Account/Description Debit Credit 1. (To record realization of noncash assets) 2. (To allocate gain (loss) to partner's capital accounts) 3. (To record payment of liabilities) 4. (To record receipt of cash from D. Snider on account of capital deficiency.) 5. Click here if you would like to Show Work for this question Link to Text 1 Question Attempts: 0 of 3 used Save for late Submit Answer Copyright 2000-2011 by John Wiley & Sons, Inc. or related companies. All rights reserved