March, April, and May have been in partnership for a number of years. The partners allocate all profits and losses on a 2:3:1 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:

Problem 15-27 (LO 15-2) March, April, and May have been in partnership for a number of years. The partners allocate all profits and losses on a 2:3:1 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 partnership's balance sheet is as follows: Cash Accounts receivable Inventory Land, building, and equipment (net) Total assets $ 36,000 Liabilities 134,000 March, capital 117,000 April, capital 72,000 May, capital $ 359,000 Total liabilities and capital $ 142,000 46,000 100,000 71,000 $ 359,000 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 $81,000 cash. b. Paid $15,000 in liquidation expenses. C. Paid $65,000 of the partnership's liabilities. d. Collected $92,000 of the accounts receivable. e. Distributed safe cash balances; the partners anticipate no further liquidation expenses. f. Sold remaining accounts receivable for 30 percent of face value. g. Sold land, building, and equipment for $42,000. h. Paid all remaining liabilities of the partnership. i. Distributed cash held by the business to the partners. Answer is not complete. No Transaction General Journal Debit Credit Cash March, Capital April, Capital May, Capital Inventory 81,000 12,000 18,000 6,000 117,000 March, Capital April, Capital May, Capital Cash 5,000 7,500 2,500 15,000 65,000 Liabilities Cash 65,000 4 d. 92,000 Cash Accounts receivable 92,000 April, Capital May, Capital Cash Cash March, Capital April, Capital May, Capital Accounts receivable Cash March, Capital April, Capital May, Capital Land, building and equipment 8 Liabilities Cash March, Capital April, Capital May, Capital Cash Problem 15-27 (LO 15-2) March, April, and May have been in partnership for a number of years. The partners allocate all profits and losses on a 2:3:1 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 partnership's balance sheet is as follows: Cash Accounts receivable Inventory Land, building, and equipment (net) Total assets $ 36,000 Liabilities 134,000 March, capital 117,000 April, capital 72,000 May, capital $ 359,000 Total liabilities and capital $ 142,000 46,000 100,000 71,000 $ 359,000 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 $81,000 cash. b. Paid $15,000 in liquidation expenses. C. Paid $65,000 of the partnership's liabilities. d. Collected $92,000 of the accounts receivable. e. Distributed safe cash balances; the partners anticipate no further liquidation expenses. f. Sold remaining accounts receivable for 30 percent of face value. g. Sold land, building, and equipment for $42,000. h. Paid all remaining liabilities of the partnership. i. Distributed cash held by the business to the partners. Answer is not complete. No Transaction General Journal Debit Credit Cash March, Capital April, Capital May, Capital Inventory 81,000 12,000 18,000 6,000 117,000 March, Capital April, Capital May, Capital Cash 5,000 7,500 2,500 15,000 65,000 Liabilities Cash 65,000 4 d. 92,000 Cash Accounts receivable 92,000 April, Capital May, Capital Cash Cash March, Capital April, Capital May, Capital Accounts receivable Cash March, Capital April, Capital May, Capital Land, building and equipment 8 Liabilities Cash March, Capital April, Capital May, Capital Cash