Question
The balance sheet of Ryan and Peter's partnership as of December 31, 2024, is given below. Assets Liabilities Cash $15,000 Accounts Payable $15,000 Accounts Receivable
The balance sheet of Ryan and Peter's partnership as of December 31, 2024, is given below. Assets Liabilities Cash $15,000 Accounts Payable $15,000 Accounts Receivable 12,000 Other liabilities Furniture Partners' Equity Equipment Ryan, Capital 30,000 Other assets 8,000 Peter, Capital 30,000 Total assets Total liabilities and partners' equity Ryan and Peter share profits in the ratio 3:2. They have decided to liquidate the partnership. They sold the furniture and equipment for . Which of the following is the correct journal entry for the sale transaction?
| Liquidation account | 139,000 | |
| Cash | 73,000 | |
| Furniture | 27,000 | |
| Equipment | 39,000 |
B.
| Cash | 73,000 | |
| Furniture | 27,000 | |
| Equipment | 39,000 | |
| Gain on Disposal | 7,000 |
C.
| Cash | 66,000 | |
| Furniture | 27,000 | |
| Equipment | 39,000 |
D.
| Loss on Disposal | 7,000 | |
| Cash | 66,000 | |
| Furniture | 27,000 | |
| Equipment | 46,000 |
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International Business
Authors: Ricky W. Griffin, Michael W. Pustay
9th Edition
013489877X, 978-0134898773
