P12-3A

Problems: Set A 567 A The partners in Crawford Company decide to liquidate the firm when the balance Prepare entries with a capital p12 sheet shows the following. CRAWFORD COMPANY Balance Sheet May 31, 2017 deficiency in liquidation of a partnership LO 3) GLS Assets Liabilities and Owners' Equit 27,500 Notes payable 25,000 Accounts payable Cash Accounts receivable Allowance for doubtful accounts Inventory Equipment Accumulated depreciation--equipment $ 13,500 27,000 (1,000) Salaries and wages payable 4,000 33,000 21,000 3,000 $101,500 34,500 21,000 A. Jamison, capital S. Moyer, capital P. Roper, capital (5,500) $101,500 The partners share income and loss 5:3:2. During the process of liquidation, the following transactions were completed in the following sequence I. A total of $51,000 was received from converting noncash assets into cash. 2. Gain 3. Liabilities were paid in full. 4. P. Roper paid his capital deficiency or loss on realization was allocated to partners. 5. Cash was paid to the partners with credit balances. Instructions (a) Loss on realization e) Prepare the entries to record the transactions $23,000 Cash paid: to Jamison $21,500; to Moyer $14,100 b) Post to the cash and capital accounts. ume that Roper is unable to pay the capital deficiency (1) Prepare the entry to allocate Roper's debit balance to Jamison and Moyer 2) Prepare the entry to record the final distribution of cash. c Donley $52.000, Journalize admission of