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The Field, Brown & Snow are partners and share income and losses equality. The partner decide to liquidate the partnership when their capital balances are as follows: Field, $$129,300$; Brown, $$166,700$; and Snow, $$155,900.$ On May $31,$ the liquidation resulted in a loss of $$405,300.$

Compute the capital account balance of each partner after the loss from liquidation is allocated.

Note: Losses and negative capital balances, if any, should be entered with a minus sign.

$\backslash$table$[[,$Field,Brown,Snow,Total$],[$Initial investments,,$$129,300,,$$$,166,700,,$$$,155,900,$$$,451,900],[$Loss allocation,$\frac{1}{3},135,100,\frac{1}{3},,135,100,\frac{1}{3},,135,100,,405,300],[$Capital balances,,$$,(5,800),,$$$,31,600,,$$$,\backslash$table$[[20,800]],$$$,857,200]]$

Assume that the partner with a deficit pays cash to cover the deficit. Prepare the journal entries on May $31$ to record $($a$)$ the cash received to cover the deficit and $(b)$ the final disbursement of cash to the partners.

Journal entry worksheet

$2$

Record the cash received to cover the deficit.

Note: Enter debits before credits.

$\backslash$table$[[$Transaction$,$General Journal,Debit,Credit$],[($a$),,,],[,,,],[,,,],[,,,],[,,,],[,,,]]$

Assume that the partner with a deficit pays cash to cover the deficit. Prepare the journal entries on May $31$ to record $($a$)$ the cas received to cover the deficit and $($b$)$ the final disbursement of cash to the partners.

Journal entry worksheet

$12$

Record the final disbursement of cash to the partners.

Note: Enter debits before credits.

$\backslash$table$[[$Transaction$,$General Journal,Debit,Credit$],[($b$),,,],[,,,],[,,,],[,,,],[,,,],[,,,]]$

Assume that the partner with a deficit does not reimburse the partnership. Prepare journal entries $($a$)$ to transfer the deficit to the other partners and $($b$)$ to record the final disbursement of cash to the partners.

Journal entry worksheet

$2$

Record transfer of Field's deficit to the other partners.

Note: Enter debits before credits.

$\backslash$table$[[$Transaction$,$General Journal,Debit,Credit$],[($a$),,,],[,,,],[,,,],[,,,],[,,,]]$

Assume that the partner with a deficit does not reimburse the partnership. Prepare journal entries $($a$)$ to transfer the deficit to the other partners and $($b$)$ to record the final disbursement of cash to the partners.

Journal entry worksheet

$$

Record the final disbursement of cash to the partners.

Note: Enter debits before credits.

$\backslash$table$[[$Transaction$,$General Journal,Debit,Credit$],[($b$),,,],[,,,],[,,,],[,,,],[,,,]]$