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need help with this assignment, due tommorrow, thank you Part B (2020) a. On December 31, 2020 new partner D invests other assets into the
need help with this assignment, due tommorrow, thank you
Part B (2020) a. On December 31, 2020 new partner D invests other assets into the partnership for a one- quarter ownership interest. An equal amount of capital is contributed by A, B, and C to make up the difference. At December 31, 2020, the partners' capital balances are as follows: A $200,000 B 180,000 190,000 $570,000 Fair value of other assets from D $50,000 b. Immediately after this, partner withdraws from the partnership. She is paid in cash the balance in her capital account plus a bonus, contributed equally from the capital balances of A, B, and D. Bonus paid to C $ 18,000 Part C (2021 and 2022) The trial balance of A, B, and D at December 31, 2021 after all adjustments have been made is as follows: Adjusted Balances Account Title Debit Credit Cash 83,000 Other Assets 80,000 Accounts Payable 140,000 A, Capital 7,000 B, Capital 7,000 C, Capital 9,000 163,000 163,000 On January 1, 2022 the partnership is liquidated. Other assets are sold for: $144,000 Gains and losses are liquidated in a ratio of: A B -2 D 5 Required 6 Print out the "Part. Liqu." page (see tab below). Complete the schedule. Assume any partner deficiency (debit ance) is repaid with cash by the applicable partner. 7 Prepare the journal entries to record the liquidation. GENERAL JOURNAL Credit Description Debit 2019 Dec. 31 A 140,000 A, Withdrawals B, Withdrawals C, Withdrawals Salaries - A Salaries - B Salaries - 150,000 500,000 B Dec. 31 Fees Revenue Office Expenses Income Summary Dec. 31 Income Summary A, Capital B, Capital C. Capital 69,500 52,000 A, B, and C GENERAL JOURNAL 2020 Description Debit Credit A. Dec. 31 50,000 155,000 Other Assets D, Capital A, Capital B, Capital C, Capital 35,000 35,000 35,000 B. 155,000 173,000 Dec. 31 C, Capital Cash A, Capital B, Capital D, Capital 6,000 6,000 6,000 B Total $200,000 (360,000) $100,000 Amount of profit Salary allocation Balance Interest allocation: Opening cap. 3,500 Rate 5% 5% 5% $60,000 3,000 3,500 (10,000) (170,000) B Balance Fixed ratio allocation B Balance Allocated to partners ($170,000) ($34,000) 2 3 5 ($170,000) 170,000 $0 $52,000 A, B, and C Trial Balance At December 31, 2019 Adjusting Entries Debit Credit # # Unadjusted Balances Debit Credit 90,000 300,000 50,000 160,000 Adjusted Balances Debit Credit 90,000 300000 50,000 110.000 110,000 180,000 140,000 200,000 78,500 Account Title Cash Accounts Receivable Accounts Payable A, Capital A, Withdrawals B, Capital B, Withdrawals C, Capital C, Withdrawals Income Summary Fees Revenue Office Expense Salaries Expense - A Salaries Expense - B Salaries Expense - C 278,500 150,000 200,000 500,000 300,000 0 140,000 300,000 110,000 140,000 150,000 1,090,000 0 0 0 790,000 1,090,000 1,100,000 790,0 A, B, and c Income Statement For the Year Ended December 31, 2019 Fees Revenue Office Expenes $200,000 Partnerhsip Profit A, B, and c Statement of Partners' Capital For the Year Ended December 31, 2019 Total $540,000 $200,000 B $69,500 Bal. at Jan 1, 2019 Partnership Profit Withdrawals ($140,000) $340,000 $128,500 $92,000 $119,500 Bal. at Dec 31, 2019 A, B, and C Balance Sheet At December 31, 2019 Liabilities Assets $50,000 Acct Payable Cash Acct Receivable $90,000 $300,000 Partners' Equity Capital Capital Capital $128,500 340,000 $390,000 $390,000 A, B, and D Statement of Partnership Liquidation For the Day Ending January 1, 2022 Accounts payable Cash Other assets Partners' capit B 7,000 D $80,000 140,000 7,ood 83,000 144,000 (80,000) Ratio 2 19,200 3 5 19,800 41,000 Opening balance Sale of other Assets Allocation of gain (loss) Amount 64000 B 64000 D 64000 Balances Payment of Liabilities Balances Repayment of Debt Balances Distribution of Cash Balances 140,000 (140,000) 19,800 26,200 41,000 87,000 87,000 (87,000) 41,000 (41,000) (26,200)Step by Step Solution
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