Stateel Question 7 (20 Marks) Allen, Bradley and Comstock, whose balance sheet information follows, have decided...

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Stateel Question 7 (20 Marks) Allen, Bradley and Comstock, whose balance sheet information follows, have decided to liquidate their partnership. The General Ledger shows these balances on May 31, 2020. Cash $20,000 Accounts Receivable 15,000 Inventories 40,000 Machinery 45,000 $120,000 Accounts Payable $14,000 Allen, Capital Bradley, Capital Comstock, Capital 17,200 24,000 64,800 $120,000 Cash received from the sale of all assets was $35,200. The partners have agreed to share gains and losses equally and have substantial investments in marketable securities other than their investments in the business. Thus, any partner with a deficit will contribute the necessary amount. Required: 1. Calculate the overall gain or loss on the sale of non-cash assets and show the amount applicable to each partner. 2. Prepare general journal entries to record: (a) (b) (c) (d) the sale of non-cash assets with allocation to partner's Capital of any gain or loss on the sale, as calculated in Req. 1. the payment to creditors. the disposition of any partner's deficit (if any). the final distribution of cash to the partners. Focus Stateel Question 7 (20 Marks) Allen, Bradley and Comstock, whose balance sheet information follows, have decided to liquidate their partnership. The General Ledger shows these balances on May 31, 2020. Cash $20,000 Accounts Receivable 15,000 Inventories 40,000 Machinery 45,000 $120,000 Accounts Payable $14,000 Allen, Capital Bradley, Capital Comstock, Capital 17,200 24,000 64,800 $120,000 Cash received from the sale of all assets was $35,200. The partners have agreed to share gains and losses equally and have substantial investments in marketable securities other than their investments in the business. Thus, any partner with a deficit will contribute the necessary amount. Required: 1. Calculate the overall gain or loss on the sale of non-cash assets and show the amount applicable to each partner. 2. Prepare general journal entries to record: (a) (b) (c) (d) the sale of non-cash assets with allocation to partner's Capital of any gain or loss on the sale, as calculated in Req. 1. the payment to creditors. the disposition of any partner's deficit (if any). the final distribution of cash to the partners. Focus