The partnership of Josephson, Ramirez, and Smith is being liquidated. All gains and losses are shared in

Question:

The partnership of Josephson, Ramirez, and Smith is being liquidated. All gains and losses are shared in a 3:2:1 ratio. Before liquidation their balance sheet looks as follows:

Journalize the entries needed in the liquidation process under the following independent situations and assume a date of December 1, 201X, for sale of assets and a date of December 15 to pay off liabilities and distribute cash to partners:
Situation 1: Sold other assets for $31,800.
Situation 2: Sold other assets for $6,000.
Situation 3: Sold other assets for $2,400. Smith cannot cover his deficit.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Liquidation
Liquidation in finance and economics is the process of bringing a business to an end and distributing its assets to claimants. It is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations when they are due.... Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...