After discontinuing the ordinary business operations and closing the accounts on

Question

After discontinuing the ordinary business operations and closing the accounts on May 7, the ledger of the partnership of Anna, Brian, and Cole indicated the following:

Cash                                                                                7,500

Noncash assets                                                            105,000

Liabilities                                                                                   27,500

Anna capital                                                                               45,000

Brian capital                                                                               15,000

Cole capital                                                                                25,000

                                                                                    112,500 112,500

The partners share net income and losses in the ratio of 3:2:1. Between May 7-30, the noncash assets were sold for 150,000, the liabilities were paid, and the remaining cash was distributed to the partners.

(A)   Prepare a statement of partnership liquidation.

(B)   Journalize the entries to liquidate the partnership.  

Explanation / Answer

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