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On August 3, the firm of Chapelle, Rock, and Pryor decided to liquidate its partnership. The partners have capital balances of $49,000, $69,000, and $11,000,

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On August 3, the firm of Chapelle, Rock, and Pryor decided to liquidate its partnership. The partners have capital balances of $49,000, $69,000, and $11,000, respectively. The cash balance is $23,000, the book values of noncash assets total $141,000, and liabilities total $35,000. The partners share income and losses in the ratio of 2:2:1 Required: 1. Prepare a statement of partnership liquidation, covering the period August 3-29, for each of the following independent assumptions a. All of the noncash assets are sold for $192,000 in cash, the creditors are paid, and the remaining cash is distributed to the partners. Enter any subtractions (balance deficiencies, payments, cash distributions, divisions of loss, tale of assets) as negative numbers using a minut sign. If there is no amount or an amount is zero, enter ** Chapette, Rock and Pryor Statement of Partnership Liquidation For Pario ALOUE 320 Cash Noncash Assets Liabilities Capital Chapello (2/5) Capital Rock (2 Balances before realization Sale of assets and division of gain Balances after realization Payment of labilities Balances after payment of liabilities Cash distributed to partners Final balances partners. Enter any minus sign. If there + Capital Rock (2/5) + Capital Pryor (1/5) ce pays the amount owed Es, cash distributions, nter "0". Previous Next > Play b. All of the noncash assets are sold for $65,000 in cash, the creditors are paid, the partner with the debit capital balance pays the amount owed to the firm, and the remaining cash is distributed to the partners. Enter any subtractions (balance deficiencies, payments, cash distributions, divisions of loss, sale of assets) as negative numbers using a minus sign. If there is no amount or an amount is zero, enter *0": Chapelle, Rock, sind Pryor Statement of Partnership Liquidation For Period August 3-29 Cash + Noncash Assets = Liabilities + Capital Chapelle (2/5) + Capital Rock (2/5 Balances before realization Sale of assets and division of loss Balances after realization Payment of liabilities Balances after payment of liabilities Receipt of deficiency Balances Cash distributed to partners Final balances 2. Assume the partner with the capital deficiency in part (b) declares bankruptcy and is unable to pay the deficiency 2. Assume the partner with the capital deficiency in part (b) declares bankruptcy and is unable to pay the deficiency. a. Journalize the entry to allocate the partner's deficiency. For a compound transaction, if an amount box does not require an entry, leave it blank ACCOUNT DEBIT CREDIT b. Journalize the entry to distribute the remaining cash. For a compound transaction, if an amount box does not require an entry, leave it blank. ACCOUNT DEBIT CREDIT

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