PART I LIQUIDATING PARTNERSHIP- CAPITAL DEFICIENCY

1. ON NOVEMBER 30 2022, THE FIRM OF RUTH, ROSE AND RAMON DECIDED

TO LIQUIDATE THEIR PARTNERSHIP. THE PARTNERS HAVE CAPITAL

BALANCES OF $58,000, $72,000 AND $10,000 RESPECTIVELY. THE CASH

BALANCE IS $32,000, THE BOOK VALUE OF NONCASH ASSETS TOTAL

$128,000 AND LIABILITIES TOTAL $20,00. THE PARTNERS SHARE INCOME

AND LOSSES IMTHE RATIO OF 2:2:1

1. PREPARE A STATEMENT OF LIQUIDATION

2. RECORD THE JOURNALS ENTRY

2. ASSUME THE NONCASH ASSETS ARE SOLD FOR $55,000 IN CASH.

1. PREPARE A STATEMENT OF LIQUIDATION

2. RECORD THE JOURNALS ENTRY

3. MARIA AND SHAKIRA HAVE A CAPITAL OF $50,000 AND $45,000, HAVE OPERATED A SUCCESSFUL FIRM FOR MANY YEARS, SHARING NET INCOME AND NET LOSSES EQUALLY. TOM IS TO BE ADMITTED TO THE PARTNERSHIP ON DECEMBER 1, 2022 OF THE CURRENT YEAR, IN ACCORDANCE WITH THE FOLLOWING AGREEMENT:

TOM IS TO CONTRIBUTED $70,000 CASH TO THE PARTNERSHIP FOR A TOTAL OWNERSHIP EQUITY OF

40%.

12% OF INTEREST OF CAPITAL ENDING BALANCES

PREPARE THE JOURNAL ENTRY.

4. JOSE AND JESUS HAVE A CAPITAL OF $100,000 AND $80,000,SHARING NET INCOME AND NET LOSSES EQUALLY. JUAN IS TO BE ADMITTED TO THE PARTNERSHIP ON JULY 1 2022, IN ACCORDANCE WITH THE FOLLOWING AGREEMENT:

JUAN IS TO CONTRIBUTED $40,000 CASH TO THE PARTNERSHIP FOR A TOTAL OWNERSHIP EQUITY OF

25%.

THEY HAVE A SALARY ALLOWANCES OF $12,000 AND $14,000.

PREPARE THE JOURNAL ENTRY.