Partners in Sunland Partnership decided to liquidate the partnership on June 30, 2021, when the balances in the partnerships accounts were as follows:
Partners in Sunland Partnership decided to liquidate the partnership on June 30, 2021, when the balances in the partnerships accounts were as follows: Cash $28,700 Accounts Receivable $24,600 Equipment $42,800 Accumulated Depreciation $14,800 Accounts Payable $26,600 A. Hunt, Capital $37,000 K. Lally, Capital $16,500 D. Portman, Capital $1,200 liquidation The partners share profit and loss 5:3:2 for Hunt, Lally, and Portman, respectively. Complete the schedule assuming the noncash assets were sold for $52,600, liabilities are paid, and the cash is distributed appropriately. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg. (45).) Accounts Receivable Item Cash Equipment Balances before liquidation $ Sale of noncash assets Payment of liabilities Allocation of cash Prepare the journal entries for the liquidation of the partnership assuming the noncash assets were sold for $52,600, liabilities are paid, and the cash is distributed appropriately. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit June 30 > > > (To record realization of assets.) June 30 (Payment on account.) June 30 > (To record final distribution to partners.) Complete the schedule assuming the assets were sold for $39,600, liabilities are paid, and any deficiencies will be paid by the deficient partner. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45). Round answers to decimal places, e.g. 5,275.) Item Cash Accounts Receivable Balances before liquidation $ $ $ Sales of noncash assets and loss on sale of assets Payment of liabilities Payment of deficiency Allocation of cash Prepare the journal entries assuming the assets were sold for $39,600, liabilities are paid, and any deficiencies will be paid by the deficient partner. Include the journal entries to record the distribution of cash. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.) Debit Credit Date Account Titles and Explanation June 30
