Problem 12-03A-C

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

Problem 12-03A a-c (Video) The partners in Sunland Company decide to liquidate the firm when the balance sheet shows the following. Cash Accounts receivable Allowance for doubtful accounts Inventory Equipment Accumulated depreciation-equipment Sunland Company Balance Sheet May 31, 2020 Liabilities and Owners' Equity $29,100 Notes payable $13,700 25,400 Accounts payable 27,200 (1,300) Salaries and wages payable 3,500 34,300 A. Jamison, capital 32,400 21,000 S. Moyer, capital 24,150 (5,000) P. Roper, capital 2,550 $ 103,500 $103,500 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 $54,850 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. Debit No. Account Titles and Explanation HE Credit 1. Cash 54,850 Allowance for Doubtful Accounts (1,300) Accumulated Depreciation-Equipment (5,000) Loss on Realization Accounts Receivable 25,400 34,300 Inventory 21,000 Equipment 2. A. Jamison, Capital S. Moyer, Capital P. Roper, Capital Loss on Realization 13,700 Notes Payable 27,200 Accounts Payable 3,500 2 Salaries and Wages Payable Cane Inc. All Rights Reserved. A Cash 44,400 4. Cash P. Roper, Capital 5. A. Jamison, Capital S. Moyer, Capital Cash LINK TO TEXT Post to the cash and capital accounts. (Post entries in the order of journal entries the column for the normal balance for the account.) Cash Bal. S. Moyer, Capital S. Moyer, Capital A. Jamison, Capital P. Rober, Capital LINK TO TEXT Assume that Roper is unable to pay the capital deficiency. (Credit account titles are auto manually.) (1) Prepare the entry to allocate Roper's debit balance to Jamison and Moyer. (2) Prepare the entry to record the final distribution of cash. No. Account Titles and Explanation Debit Credit A. Jamison, Capital S. Moyer, Capital P. Roper, Capital 2. A. Jamison, Capital S. Moyer, Capitan Accounts Receivable Click t out lite