Just cant get I
March, April, and May have been in partnership for a number of years. The partners allocate all profits and losses on a 4:2:2 basis, respectively. Recently, each partner has become personally insolvent and, thus, the partners have decided to liquidate the business in hopes of remedying their personal financial problems. As of September 1, the partnerships balance sheet is as follows: Cash Accounts receivable Inventory Land, building, and equipment (net) Total assets $ 35,000 Liabilities 132,000 March, capital 122,000 April, capital 71,000 May, capital $360,000 Total liabilities and capital $ 131,000 60,000 99,000 70,000 $360,000 Prepare journal entries for the following transactions: (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) a. Sold all inventory for $80,000 cash. b. Paid $14,700 in liquidation expenses. c. Paid $64,000 of the partnership's liabilities. d. Collected $84,000 of the accounts receivable. e. Distributed safe cash balances; the partners anticipate no further liquidation expenses. f. Sold remaining accounts receivable for 35 percent of face value. g. Sold land, building, and equipment for $41,000. h. Paid all remaining liabilities of the partnership. i. Distributed cash held by the business to the partners. March, Capital April, Capital May, Capital Cash 1,050 525 X 525 2,100 X March, April, and May have been in partnership for a number of years. The partners allocate all profits and losses on a 4:2:2 basis, respectively. Recently, each partner has become personally insolvent and, thus, the partners have decided to liquidate the business in hopes of remedying their personal financial problems. As of September 1, the partnerships balance sheet is as follows: Cash Accounts receivable Inventory Land, building, and equipment (net) Total assets $ 35,000 Liabilities 132,000 March, capital 122,000 April, capital 71,000 May, capital $360,000 Total liabilities and capital $ 131,000 60,000 99,000 70,000 $360,000 Prepare journal entries for the following transactions: (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) a. Sold all inventory for $80,000 cash. b. Paid $14,700 in liquidation expenses. c. Paid $64,000 of the partnership's liabilities. d. Collected $84,000 of the accounts receivable. e. Distributed safe cash balances; the partners anticipate no further liquidation expenses. f. Sold remaining accounts receivable for 35 percent of face value. g. Sold land, building, and equipment for $41,000. h. Paid all remaining liabilities of the partnership. i. Distributed cash held by the business to the partners. March, Capital April, Capital May, Capital Cash 1,050 525 X 525 2,100 X
