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The partners in Salmon Company decide to liquidate the firm when the balance sheet shows the following. SALMON COMPANY Balance Sheet April 30, 2017 Cash
The partners in Salmon Company decide to liquidate the firm when the balance sheet shows the following. SALMON COMPANY Balance Sheet April 30, 2017 Cash $28,000, Notes payable$ 16,000, Accounts receivable 19,000, Accounts payable 24,000, Allowance for doubtful accounts (1,000) Salaries and wages 2,000, Inventory 28,000, Equipment 17,000, , Accumulated depreciation equipment (10,000) Melton, capital 23,000, Peters, capital 11,200, Abbott, capital 4,800. The partners share income and loss 5:2:3. A total of $33,000 was received from converting noncash assets into cash Instructions (a) Prepare the entries to record the 4 steps of the liquidation. (b) Post to the cash and capital accounts. (b) If a partner ends up with a deficiency assume the partner will not invest additional cash
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