Current Attempt in Progress

Sedgwick Company at December $31$ has cash $$20,000,$ noncash assets $$100,000,$ liabilities $$55,000,$ and the following capital balances: Floyd $$45,000$ and DeWitt $$20,000.$ The firm is liquidated, and $$105,000$ in cash is received for the noncash assets. Floyd and DeWitt income ratios are $60\%$ and $40\%,$ respectively. Sedgwick Company decides to liquidate the partnership.

Prepare the entries to record: $($Credit account titles are automatically indented when amount is entered. Do not indent manually.$)$

a$.$ The sale of noncash assets.

b$.$ The allocation of the gain or loss on realization to the partners.

c$.$ Payment of creditors.

d$.$ Distribution of cash to the partners.

Account Titles and Explanation

Debit

Credit

a$.$

b$.$