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

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

Wildhorse Company Balance Sheet May 31, 2020
Assets					Liabilities and Owners Equity
Cash		$28,900			Notes payable		$13,400
Accounts receivable		24,100			Accounts payable		27,500
Allowance for doubtful accounts		(1,300	)		Salaries and wages payable		4,400
Inventory		34,900			A. Jamison, capital		32,700
Equipment		20,400			S. Moyer, capital		20,500
Accumulated depreciationequipment		(5,800	)		P. Roper, capital		2,700
		$101,200					$101,200

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 $51,600 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.

(c)

Assume that Roper is unable to pay the capital deficiency. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

(1)		Prepare the entry to allocate Ropers debit balance to Jamison and Moyer.
(2)		Prepare the entry to record the final distribution of cash.

No.	Account Titles and Explanation	Debit	Credit
1.	select an account title to record the first transaction	enter a debit amount	enter a credit amount
	select an account title to record the first transaction	enter a debit amount	enter a credit amount
	select an account title to record the first transaction	enter a debit amount	enter a credit amount
2.	select an account title to record the second transaction	enter a debit amount	enter a credit amount
	select an account title to record the second transaction	enter a debit amount	enter a credit amount
	select an account title to record the second transaction	enter a debit amount	enter a credit amount

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