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Parts A and B Please and Thank you Alex and Bess have been in partnership for many years. The partners, who share profits and losses
Parts A and B Please and Thank you
Alex and Bess have been in partnership for many years. The partners, who share profits and losses on a 60:40 basis, respectively, wish to retire and have agreed to liquidate the business. Liquidation expenses are estimated to be $9,500. At the date the partnership ceases operations, the balance sheet is as follows: $ Cash Noncash assets 71,000 300,000 Liabilities Alex, capital Bess, capital Total liabilities and capital $ 61,000 180,000 130,000 $ 371,000 Total assets $ 371,000 Part A: Prepare journal entries for the following transactions that occurred in chronological order: a. Distributed safe cash payments to the partners. b. Paid $36,600 of the partnership's liabilities. c. Sold noncash assets for $310,000. d. Distributed safe cash payments to the partners. e. Paid remaining partnership liabilities of $24,400. f. Paid $8,500 in liquidation expenses; no further expenses will be incurred. g. Distributed remaining cash held by the business to the partners. Part B: Prepare a final statement of partnership liquidationStep by Step Solution
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