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Appalachian Company at December 31 has cash $40,000, Accounts Receivable $50,000, Allowance for Doubtful Accounts $10,000, Inventory $60,000, Equipment $175,000, Accum Depreciation- Equip $75,000, Accounts
Appalachian Company at December 31 has cash $40,000, Accounts Receivable $50,000, Allowance for Doubtful Accounts $10,000, Inventory $60,000, Equipment $175,000, Accum Depreciation- Equip $75,000, Accounts Payable $110,000, and the following capital balances: Hoffman $90,000 and Mena $40,000. The firm is liquidated, and $220,000 in cash is received for the noncash assets. Hoffman and Mena income ratios are 60% and 40%, respectively. | ||||||||
2 | Journalize the liquidation of the assets. | |||||||
3 | Journalize the distribution of the gain/loss on liquidation. | |||||||
4 | Journalize the paying of liabilities. | |||||||
5 | Journalize the distribution to each owner. | |||||||
The Felton and Burchell Partnership has partner capital account balances as follows: | ||||||||
Felton, Capital | $550,000 | |||||||
Burchell, Capital | 200,000 | |||||||
The partners share income and losses in the ratio of 60% to Felton and 40% to Burchell. | ||||||||
Prepare the journal entry on the books of the partnership to record the admission of Santos as a new partner under the following circumstance. | ||||||||
6 | Santos pays $400,000 to Felton and $150,000 to Burchell for one-half of each of their ownership interest in a personal transaction. |
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