Question 2 Q:12
LOT is a partnership owned by Liver, Oza, and Tackman. The partners' profit-and-loss-sharing ratio is 2:2:1, respectively. The adjusted trial balance of the partnership at November 30, 2024, follows: (Click the icon to view the trial balance.) Read the requirements. Requirement 1. Prepare a statement of partners' equity for the month ended November 30 , 2024. Use a separate column for each partner in the statement of partners' equity. Assume no new capital contributions during November. Requirement 2. Prepare the four closing entries for the month ended November 30, 2024. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Close expenses for the period. (Prepare a single compound journal entry.) Close Income Summary. (Prepare a single compound journal entry.) Close withdrawals. (Prepare a single compound journal entry.) Requirement 3. Tackman decides to withdraw from the partnership on December 1, 2024. Her settlement includes all the Merchandise Inventory and all of the Cash in exchange for her equity interest in the partnership. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Requirement 4. Immediately after Tackman's withdrawal, Liver and Oza decide to liquidate the partnership. They sell the building for $118,000 Then they pay the liabilities and distribute the cash to complete the liquidation. Journalize these liquidation entries. Assume the profit-and-loss-sharing ratios remain the same. (Record debits first, then credits. Select the explanation on the last line of the journal entry table Journalize the sale of the non-cash assets for $118,000. Journalize the payoff of liabilities. Journalize the distribution of the remaining cash to the partners. Data table Requirements 1. Prepare a statement of partners' equity for the month ended November 30 , 2024. Use a separate column for each partner in the statement of partners' equity. Assume no new capital contributions during November. 2. Prepare the four closing entries for the month ended November 30, 2024. 3. Tackman decides to withdraw from the partnership on December 1, 2024. Her settlement includes all the Merchandise Inventory and all of the Cash in exchange for her equity interest in the partnership. 4. Immediately after Tackman's withdrawal, Liver and Oza decide to liquidate the partnership. They sell the building for $118,000. Then they pay the liabilities and distribute the cash to complete the liquidation. Journalize these liquidation entries. Assume the profit-and-loss-sharing ratios remain the same
