Question
On December 31, Nola Company has cash $ 32,000, noncash assets $ 157,000, and liabilities $ 86,000. Capital balances were Harper $ 63,000 and Kahle
On December 31, Nola Company has cash $ 32,000, noncash assets $ 157,000, and liabilities $ 86,000. Capital balances were Harper $ 63,000 and Kahle $ 40,000. The firm is liquidated, and the noncash assets are sold for $ 116,000. Harper and Kahle share income in a 70: 30 ratio. Prepare entries to record (a) the sale of noncash assets and (b) the allocation of the gain (loss) on liquidation to the partners. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.)
Account Titles and Explanation | Debit | Credit | |
---|---|---|---|
(a) | select an account title CashNoncash AssetsHarper, DrawingsSuppliesKahle, DrawingsHarper, CapitalGain on RealizationLoss on RealizationKahle, Capital | enter a debit amount | enter a credit amount |
select an account title Harper, CapitalCashSuppliesNoncash AssetsKahle, DrawingsKahle, CapitalHarper, DrawingsGain on RealizationLoss on Realization | enter a debit amount | enter a credit amount | |
select an account title Harper, CapitalNoncash AssetsGain on RealizationCashKahle, DrawingsLoss on RealizationHarper, DrawingsSuppliesKahle, Capital | enter a debit amount | enter a credit amount | |
(b) | select an account title Harper, DrawingsSuppliesKahle, CapitalKahle, DrawingsLoss on RealizationNoncash AssetsHarper, CapitalCashGain on Realization | enter a debit amount | enter a credit amount |
select an account title SuppliesHarper, CapitalHarper, DrawingsKahle, CapitalNoncash AssetsKahle, DrawingsCashGain on RealizationLoss on Realization | enter a debit amount | enter a credit amount | |
select an account title Loss on RealizationHarper, CapitalNoncash AssetsKahle, CapitalCashGain on RealizationSuppliesHarper, DrawingsKahle, Drawings | enter a debit amount | enter a credit amount |
Norris, Madson, and Howell have income ratios of 5:3:2 and capital balances of $ 42,840, $ 39,060, and $ 35,280, respectively. Noncash assets are sold at a gain and allocated to the partners. After creditors are paid, $ 129,780 of cash is available for distribution to the partners. How much cash should be paid to Madson?
Cash | $ enter the amount of cash to be paid in dollars |
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