The partnership of Emir, Khan, & Chanyu has experienced operating losses for three consecutive years. The partners€”who have shared profits and losses in the ratio of Emir, 15%; Khan, 60%; and Chanyu, 25%€”are liquidating the business. They ask you to analyze the effects of liquidation. They present the following condensed partnership balance sheet at December 31, end of the current year:

Requirement
1. Journalize the liquidationtransactions.

Transcribed Image Text:

EMIR, KHAN, & CHANYUU Balance Sheet December 31, 2012 Assets Liabilities Cash Other assets 14,000 Accounts payable 160,000 S 65,000 Owners' equity Emit, capital Khan, capital Chanyu, capital 20,000 67,000 22,000 Total assets 4,000 Total liabilities and owners' equity $174