On June 3rd, 2010 the firm McAdams, cooper and Zhang decided to liquidate their

Question

On June 3rd, 2010 the firm McAdams, cooper and Zhang decided to liquidate their partnership. the partners have capital balances of 14000, 84000, and 118000 respectively. The cash balance is 29000 the book values of noncash assets total 242000 and liabilities total 55000, the partners share income and loses in the ration 1:2:2.



Prepare a statement of partnership liquidation, covering the period of june 3-29. for each of the following independent assumptions.



also,



A. all of the noncash assets are sold for 290000 in cash, the creditors are paid and the remaining cash is distributed to the partners.



If you can figure this out, and send it back to me, that would be great, I need to be able to see an example to fully understand it, and I dont know how to do this. I need the 4 journal entries and the statement of liquidation

Explanation / Answer

Item Cash + Non Cash Assets = Liabilities    + Mcapital + C Capital Z Capital Balances before Liquidation 29000 242000 55000 43200 86400 86400 Sale of Non Cash Assets 290000 -242000 9600 19200 19200 New Balnces 319000 0 55000 52800 105600 105600 Pay Liabilities -55000 -55000 New Balances 264000 52800 105600 105600 Cash Distribution -264000 -52800 -105600 -105600 Journal Entries : Cash          290,000      Non Cash Assets    242,000      Gain on sale               48000 Gain on Sale 48000            M Capital               9600             Z Capital            19,200             C Capital           19,200 Liabilities 55,000          Cash                  55,000 M Capital  52,800 ZCapital     105,600        C Capital   105,600                Cash                   264,000 Item Cash + Non Cash Assets = Liabilities    + Mcapital + C Capital Z Capital Balances before Liquidation 29000 242000 55000 43200 86400 86400 Sale of Non Cash Assets 290000 -242000 9600 19200 19200 New Balnces 319000 0 55000 52800 105600 105600 Pay Liabilities -55000 -55000 New Balances 264000 52800 105600 105600 Cash Distribution -264000 -52800 -105600 -105600

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