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I having trouble with problem C. The partners in Crane Company decide to liquidate the firm when the balance sheet shows the following. Assets Cash
I having trouble with problem C.
The partners in Crane Company decide to liquidate the firm when the balance sheet shows the following. Assets Cash Accounts receivable Allowance for doubtful accounts Inventory Equipment Accumulated depreciation-equipment Crane Company Balance Sheet May 31, 2020 Liabilities and Owners' Equity $30,000 Notes payable $13,700 24,200 Accounts payable 27,200 (1,200) Salaries and wages payable 4,000 34,600 A. Jamison, capital 32,600 21,200 S. Moyer, capital 23,100 (5,200) P. Roper, capital 3,000 $103,600 $103,600 The partners share income and loss 5:3:2. During the process of liquidation, the following transactions were completed in the following sequence. 1. A total of $50,600 was received from converting noncash assets into cash. 2. Gain or loss on realization was allocated to partners. 3. Liabilities were paid in full. 4. P. Roper paid his capital deficiency. 5. Cash was paid to the partners with credit balances. Prepare the entries to record the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Credit 1. Cash Allowance for Doubtful Accounts Accumulated Depreciation Equipment Loss on Realization 23000 Accounts Receivable IN 24200 34600 Inventory T T Equipment L I 11500 21200 A. Jamison, Capital S. Mayer, Capital e. Roper, Capital Realization 4600 Loss on Realization i 23000 3. Notes Payable Accounts Payable U 13700 _ 27200_ 4000 Salaries and Wages Payable blev Cash 44900 L 1500 P. Roper, Capital 1500 s a Jamison, Capital S. Moyer, Capital Cash Your answer is correct. Post to the cash and capital accounts. (Post entries in the order of journal entries presented in the previous part. If ending balance is O enter O in the column for the normal balance for the account.) Cash 44900 37300 32600 3000 1600 (c) Your answer is partially correct. Try again. Assume that Roper is unable to pay the capital deficiency. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (1) Prepare the entry to allocate Roper's debit balance to Jamison and Moyer. (2) Prepare the entry to record the final distribution of cash. No. Account Titles and Explanation Debit Credit 1. P. Roper, Capital 1600 TA. Jamison, Capital 1000 S. Moyer, Capital 600 2. A. Jamison, Capital S. Moyer, Capital 600 P. Roper, Capital 1600Step by Step Solution
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