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: The Jaijairam Company Balance Sheet December 20, 2016 Assets Liabilities and Owners' Equity Cash $ 60,000 Notes Payable $ 93,000 Land 200,000 Nicholas Jay, Capital 71,000 Buildings 198.000 Kamla Paul, Capital 210,000 Stephanie Ram, Capital 84,000 Total Assets $ 458,000 Total Liabilities & Owners' Equity $ 458,000 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 $ 428,000. (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 Cash 428,000 Gain on Realization 30,000 Land 200,000 Buildings 198,000 (To record the sale and realization of noncash assets) 20 (To allocate the loss or gain on realization to partners) 20 (To record payment of partnership liability) 20 > (To record distribution of cash to partners) 2) The "Land" and "Buildings" were sold for $ 308,000. (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.) Date Account Titles and Explanation Debit Credit 2016 Dec. 20 Cash 308,000 Loss on Realization 90,000 Land 200,000 Buildings 198,000 (To record the sale and realization of noncash assets) 20 (To allocate the loss or gain on realization to partners) 20 (To record payment of partnership liability) 20 (To record distribution of cash to partners) 3) The "Land" and "Buildings" were sold for $ 178,000, 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.) Date Account Titles and Explanation Debit Credit 2016 Dec. 20 Cash 178,000 Loss on Realization 220,000 Land 200,000 Buildings 198,000 (To record the sale and realization of noncash assets) ZU > (To allocate the loss or gain on realization to partners) 20 (To record payment of the capital deficiency by Stephanie) 20 (To record payment of partnership liability) 20 (To record payment of partnership liability) 20 (To record distribution of cash to partners) 4) The "Land" and "Buildings" were sold for $ 138,000, 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.) Date Account Titles and Explanation Debit Credit 2016 Dec. 20 Cash 138,000 Loss on Realization 260,000 Land 200,000 Buildings 198,000 (To record the sale and realization of noncash assets) 20
