Question
The BT Partnership has decided to liquidate after an unsuccessful few years. The following balance sheet is shown for BT Partnership after the closing of
The BT Partnership has decided to liquidate after an unsuccessful few years. The following balance sheet is shown for BT Partnership after the closing of the business and the preparation of financial statements on December 31, 2020. The partners share income and losses equally.
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| BT Partnerships |
| ||
|
| Balance Sheet |
| ||
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| December 31, 2020 |
| ||
| Assets |
|
| Liabilities |
|
| Cash | $4,000 |
| Notes Payable | $2,000 |
| Truck | 40,000 |
| Partners' Equity |
|
| Less: Accumulated Depreciation | 20,000 |
| Bachman, Capital | 12,000 |
|
|
|
| Turner, Capital | 10,000 |
| Total Assets | $24,000 |
| Total Liabilities and Partner's equity | $24,000 |
The truck has been sold for $18,000 cash.
REQUIRED: Prepare the journal entries for the sale of the inventory and the distribution of the cash to the proper parties on January 1, 2021 below. The partner does not have sufficient personal assets to pay any deficits.
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Advanced Financial Reporting And Analysis
Authors: John Dunn, Margaret Stewart
1st Edition
0470973609, 9780470973608
