Year 1 Albert, Bill, Charlie formed a partnership by signing an agreement that stated that all profits would be shared 2:3:5 ratio and by making the following investments:

Albert

Bill

Charlie

Cash

12,000

8,000

14,000

Accounts Receivable (net)

20,000

14,500

60,000

Office Furniture (net)

0

0

15,000

Vehicles (net)

21,000

38,500

0

Dec 31, Year 1 The partnership reported net income of $53,500 for the year.

June 7, Year 2 Albert and Charlie agreed that Bill could sell their share of the partnership to Doug for $75,000. The new partners agreed to keep the same profit-sharing arrangement (2:3:5 for Albert, Doug, Charlie)

Dec 31, Year 2 The partnership reported a loss of $67,000 for the year.

Jan 3, Year 3 The partnership agreed to liquidate the partnership. On this date the balance sheet showed the following items with all accounts having their normal balances:

Cash

17,500

Accounts Receivable

316,000

Allowance for uncollectible accounts

22,500

Office Furniture

74,500

Vehicles

240,000

Accumulated amortization (total)

49,500

Accounts Payable

386,500

The assets were sold for the following amounts:

Accounts receivable

200,000

Office Furniture

75,000

Vehicles

100,000

Albert and Doug both have personal assets, but Charlie does not.

Required:Journalize all the transactions for the partnership