PARTNERSHIP CLOSES

Abe, Babe, and Cabe decided to liquidate their partnership. The accounts prior to liquidation are below:

BALANCE SHEET - Prior to Liquidation

Cash $20,000 A-Pay $40,000

A-Rec 70,000

Allow-Bad-Debt - 10,000 60,000

Inventory 30,000 A-Capital 50,000

Building 80,000 B-Capital 40,000

Acc-Depr - 30,000 50,000 C-Capital 30,000

TOTAL ASSETS $16,000 Total Liab + Equity $160,000

The partners share income and losses 2:2:1. Prepare journal entries for liquidation.

a. Sold A-Rec for $50,000 b. Sold Inventory for $20,000 c. Sold Building for $90,000