Exercise 16-1 The CPA Partnership operated by Cook, Parks, and Argo is being liquidated. A balance sheet prepared at this stage in their liquidation process is presented below. Cash Other Assets $38,000 47,000 Liabilities Parks, Loan Cook, Capital Parks, Capital Argo, Capital Total $19,000 11,000 29,000 9,000 17,000 $85,000 Total $85,000 The partners share profits and losses 30% (Cook), 50% (Parks), and 20% (Argo). The partners are all personally insolvent. (a) Your answer is correct. The partners wish to distribute the $38,000 in cash. Record in journal entry form the distribution of the available cash. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit Liabilities 19000 Cash 19000 (To record payment of liabilities) Cook, Capital 12800 Argo, Capital 62001 19000 Cash (To record distribution to partners) Your answer is partially correct. Try again. Record in journal entry form the completion of the liquidation process, assuming that the other assets of $47,000 are sold for $15,000. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit Cash 15000 Cook, Capital 9600 Parks, Capital 16000 Argo, Capital 6400 47000 Other Assets (To record sale of other assets) Parks, Loan 11000 X Cash 11000 (To record repayment of loan) Cook, Capital 14987 X Argo, Capital 8013 X Cash 23000 (To record distribution to partners)

Exercise 16-1 The CPA Partnership operated by Cook, Parks, and Argo is being liquidated. A balance sheet prepared at this stage in their liquidation process is presented below. Cash Other Assets $38,000 47,000 Liabilities Parks, Loan Cook, Capital Parks, Capital Argo, Capital Total $19,000 11,000 29,000 9,000 17,000 $85,000 Total $85,000 The partners share profits and losses 30% (Cook), 50% (Parks), and 20% (Argo). The partners are all personally insolvent. (a) Your answer is correct. The partners wish to distribute the $38,000 in cash. Record in journal entry form the distribution of the available cash. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit Liabilities 19000 Cash 19000 (To record payment of liabilities) Cook, Capital 12800 Argo, Capital 62001 19000 Cash (To record distribution to partners) Your answer is partially correct. Try again. Record in journal entry form the completion of the liquidation process, assuming that the other assets of $47,000 are sold for $15,000. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit Cash 15000 Cook, Capital 9600 Parks, Capital 16000 Argo, Capital 6400 47000 Other Assets (To record sale of other assets) Parks, Loan 11000 X Cash 11000 (To record repayment of loan) Cook, Capital 14987 X Argo, Capital 8013 X Cash 23000 (To record distribution to partners)