Question
Matthews, Mitchell, and Michaels are partners in BG Land Development Company and share losses in a 5:3:2 ratio, respectively. The balance sheet on June 30,
Matthews, Mitchell, and Michaels are partners in BG Land Development Company and share losses in a 5:3:2 ratio, respectively. The balance sheet on June 30, 20X1, when they decide to liquidate the business, is as follows:
| Assets | Liabilities and Capital | ||
|---|---|---|---|
| Cash | $ 16,000 | Accounts Payable | $ 36,000 |
| Noncash Assets | 158,000 | Mitchell, Loan | 13,000 |
| Matthews, Capital | 77,000 | ||
| Mitchell, Capital | 34,400 | ||
| Michaels, Capital | 13,600 | ||
| Total Assets | $ 174,000 | Total Liabilities and Equities | $ 174,000 |
The noncash assets are sold for $120,000.
Required:
Prepare a statement of partnership realization and liquidation.
Prepare the required journal entries to account for the liquidation of BG Land Development Company.
Complete this question by entering your answers in the tabs below.
Required A
Prepare a statement of partnership realization and liquidation.
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Required B
Prepare the required journal entries to account for the liquidation of BG Land Development Company. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Journal entry worksheet
Record the sale of the assets.
Note: Enter debits before credits.
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Fundamental Managerial Accounting Concepts
Authors: Edmonds, Tsay, olds
6th Edition
71220720, 78110890, 9780071220729, 978-0078110894
