The partners in Salmon Company decide to liquidate the firm when the balance sheet shows the...
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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 Assets Liabilities and Owners' Equity Cash $28,000 Notes payable $16,000 Accounts receivable 19,000 Accounts payable 24,000 Allowance for doubtful accounts (1,000) Salaries and wages Inventory 28,000 payable 2,000 Equipment 17,000 Melton, capital 23,000 Accumulated depreciation-equipment Total (10,000) Peters, capital 11,200 $81,000 Abbott, capital 4,800 Total $81,000 The partners share income and loss 5:3:2. During the process of liquidation, the transac- tions below were completed in the following sequence. 1. A total of $43,000 was received from converting noncash assets into cash. 2. Liabilities were paid in full. 3. Cash was paid to the partners with credit balances. Instructions (a) Prepare a cash distribution schedule. (b) Prepare the entries to record the transactions. (c) Post to the cash and capital accounts. The partners in Salmon Company decide to liquidate the firm when the balance sheet shows the following. SALMON COMPANY Balance Sheet April 30, 2017 Assets Liabilities and Owners' Equity Cash $28,000 Notes payable $16,000 Accounts receivable 19,000 Accounts payable 24,000 Allowance for doubtful accounts (1,000) Salaries and wages Inventory 28,000 payable 2,000 Equipment 17,000 Melton, capital 23,000 Accumulated depreciation-equipment Total (10,000) Peters, capital 11,200 $81,000 Abbott, capital 4,800 Total $81,000 The partners share income and loss 5:3:2. During the process of liquidation, the transac- tions below were completed in the following sequence. 1. A total of $43,000 was received from converting noncash assets into cash. 2. Liabilities were paid in full. 3. Cash was paid to the partners with credit balances. Instructions (a) Prepare a cash distribution schedule. (b) Prepare the entries to record the transactions. (c) Post to the cash and capital accounts.
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a Cash Distribution Schedule Cash Available for Distribution Total Cash Received from Liquidation 43... View the full answer
Related Book For
Accounting Principles
ISBN: 9781118566671
11th Edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
Posted Date:
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