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g) After divding the income for the year, all parties agreed to liquidate the partnership. The values of the assets and liabilities are shown below.
g) After divding the income for the year, all parties agreed to liquidate the partnership. The values of the assets and liabilities are shown below. The furniture is sold for $87,480 and all other assets are sold at their given values. Any gains or losses from liquidation are split evenly among all partners. 87,480 Cash $576,830 Accounts Receivable 94,450 Net Equipment 219,050 Net Furniture 111,480 Accounts Payable 41,520 Bank Loan 138,040 Prepare the journal entries to sell the assets, distribute any gains or losses to the partners, pay the liabilities and distribute the cash to the partners. 16 Marks Date Account Title and Explanation Debit Credit dec31-20 Cash 373,270 Account payable 41,520 We have to have 4 transactions bank loan 138,040 here, follow the instructions. Loss on sale assets 24,000 assets 576,830 to record sale of non - cash assets for a gain payment of liabilities
| g) After divding the income for the year, all parties agreed to liquidate the partnership. The values of the assets and liabilities are shown below. The furniture is sold for $87,480 and all other assets are sold at their given values. Any gains or losses from liquidation are split evenly among all partners. | ||||||||||
| 87,480 | ||||||||||
| Cash | $576,830 | |||||||||
| Accounts Receivable | 94,450 | |||||||||
| Net Equipment | 219,050 | |||||||||
| Net Furniture | 111,480 | |||||||||
| Accounts Payable | 41,520 | |||||||||
| Bank Loan | 138,040 | |||||||||
| Prepare the journal entries to sell the assets, distribute any gains or losses to the partners, pay the liabilities and distribute the cash to the partners. | 16 Marks | |||||||||
| Date | Account Title and Explanation | Debit | Credit | |||||||
| dec31-20 | Cash | 373,270 | ||||||||
| Account payable | 41,520 | We have to have 4 transactions | ||||||||
| bank loan | 138,040 | here, follow the instructions. | ||||||||
| Loss on sale assets | 24,000 | |||||||||
| assets | 576,830 | |||||||||
| to record sale of non - cash assets for a gain payment of liabilities | ||||||||||
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Introduction to Managerial Accounting
Authors: Peter Brewer, Ray Garrison, Eric Noreen
7th edition
978-1259675539, 125967553X, 978-1259594168, 1259594165, 78025796, 978-0078025792
