The Kelly & Lena partnership has the following balances on June 30, 2012:

Kelly and Lena share profits 2:3.
Requirement
1. Journalize the sale of the noncash assets for $25,000, the payment of the liabilities, and the payment to thepartners.

Transcribed Image Text:

KELLY &LENA Balance Sheet June 30, 2012 Assets Liabilities and Owners' equity Cash Other assets s 5,000 Accounts payable 30,000 Kelly, capital $20,000 8,000 7,000 Lena, capital Total assets 35.000 Total liabilities and owners' equity $35.