Problem 12-03A a-c (Part Level Submission) (Video)

The partners in Sandhill Company decide to liquidate the firm when the balance sheet shows the following.

Sandhill Company Balance Sheet May 31, 2020
Assets					Liabilities and Owners Equity
Cash		$29,200			Notes payable		$13,700
Accounts receivable		24,900			Accounts payable		26,900
Allowance for doubtful accounts		(1,200	)		Salaries and wages payable		3,500
Inventory		34,100			A. Jamison, capital		32,800
Equipment		21,700			S. Moyer, capital		23,550
Accumulated depreciationequipment		(5,400	)		P. Roper, capital		2,850
		$103,300					$103,300

The partners share income and loss 5:3:2. During the process of liquidation, the following transactions were completed in the following sequence.

1.		A total of $52,250 was received from converting noncash assets into cash.
2.		Gain or loss on realization was allocated to partners.
3.		Liabilities were paid in full.
4.		P. Roper paid his capital deficiency.
5.		Cash was paid to the partners with credit balances.

(a)

Prepare the entries to record the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.	Account Titles and Explanation	Debit	Credit
1.
2.
3.
4.
5.