Nicholas Jay, Kamla Paul, and Stephanie Ram plan to liquidate their partnership. They have always shared losses and gains in a 1:4:5 ratio, and on the day of the liquidation their balance sheet appeared as follows: Assets Cash Land Buildings The Jaijairam Company Balance Sheet December 20, 2016 Liabilities and Owners' Equity $63,000 Notes Payable 208,000 Nicholas Jay, Capital 179,000 Kamla Paul, Capital Stephanie Ram, Capital $450,000 Total Liabilities & Owners' Equity $94,000 73,000 202,000 81,000 $450,000 Total Assets Under the following four independent assumptions, prepare the journal entries for the sale of the "land" and "buildings", allocation of any loss or gain, any deficit(s), the payment of the liability, and the distributions to the partners, if: 1) The "Land" and "Buildings" were sold for $417,000. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Do not use dollar signs ($) when entering amounts. To see comma-formatted numbers reflected in your final answers, you must enter your answers with commas. Round answers to 2 decimal places, e.g. 5,275.25.) Debit Credit Date Account Titles and Explanation 2016 Dec. 20 (To record the sale and realization of noncash assets) (To allocate the loss or gain on realization to partners) (To record payment of partnership liability) (To record distribution of cash to partners) 2) The "Land" and "Buildings" were sold for $307,000. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Do not use dollar signs ($) when entering amounts. To see comma-formatted numbers reflected in your final answers, you must enter your answers with commas. Round answers to 2 decimal places, e.g. 5,275.25.) Debit Credit Date Account Titles and Explanation 2016 Dec. 20 (To record the sale and realization of noncash assets) (To allocate the loss or gain on realization to partners) 20 (To record payment of partnership liability) (To record distribution of cash to partners) 3) The "Land" and "Buildings" were sold for $172,000, and any partners with a resulting deficits can and do pay the amount of their deficits. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Do not use dollar signs ($) when entering amounts. To see comma-formatted numbers reflected in your final answers, you must enter your answers with commas. Round answers to 2 decimal places, e.g. 5,275.25.) Debit Credit Date Account Titles and Explanation 2016 Dec. 20 (To record the sale and realization of noncash assets) (To allocate the loss or gain on realization to partners) (To record payment of the capital deficiency by Stephanie) (To record payment of partnership liability) (To record distribution of cash to partners) 4) The "Land" and "Buildings" were sold for $127,000, and the partners with deficits have no assets other than those invested in the business. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Do not use dollar signs ($) when entering amounts. To see comma-formatted numbers reflected in your final answers, you must enter your answers with commas. Round answers to 2 decimal places, e.g. 5,275.25.) Debit Credit Date Account Titles and Explanation 2016 Dec. 20 (To record the sale and realization of noncash assets) (To allocate the loss or gain on realization to partners) (To record write-off of the capital deficiency by Stephanie Ram) (To record payment of partnership liability) (To record distribution of cash to partners)
