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Craig, Joshi, and Meng decide to liquidate their partnership as of Dec. 3 1 , Yr 1 0 . The below trial balance provides information
Craig, Joshi, and Meng decide to liquidate their partnership as of Dec. Yr The below trial balance provides information relating to Yr operations, and account balances prior to closing. Note that Joshi withdrew $ from his partnership account on July Yr
According to the partnership agreement, profits and losses are distributed as follows:
Annual Salary Allowance: Craig $ Joshi $ and Meng $
Interest on Beginning Partners' Capital Account:
Remaining is allocated evenly to all partners
According to the partnership agreement, upon liquidation profits or losses are allocated:
Craig
Joshi
Meng
Requirments:
Calculate Net Income.
Prepare a schedule showing the distribution of Yr net income.
Prepare yearend journal entries to close the Yr net earnings to the partners and close Joshi's cash withdrawal.
Calculate the partners' capital balances after the closing.
Calculate the gain or loss on sell of noncash assets.
Enter the calculated partners' capital balances from step into the Liquidation Schedule as well as the balances for Cash, NonCash Assets and liabilities see the trial balance
Prepare a liquidation schedule. Be sure to use the calculated partners' capital balances. Noncash assets were sold for $
Prepare the liquidation journal entries related to:
a Sell of noncash assets on Jan
b Distribution of gain or loss to partners on Jan
c Payment of liabilities on Jan
d Payment by partners if needed to bring account to zero from a negative balance on Jan
e Distribute remaining cash to partners on Jan
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