Immediately prior to the process of liquidation, partners Micco,Niccum, and Orwe

Question

Immediately prior to the process of liquidation, partners Micco,Niccum, and Orwell have capital balances of $70,000, $20,000, and$30,000 respectively. There is a cash balance of $10,000,noncash assets total $160,000, and liabilities total $50,000. The partners share net income and losses in the ratio of 2:2:1.

Journalize the entries to record the liquidation outlined below,using Assets as the account title for the noncash assets andLiabilities as the account title for all creditors' claims.

(a)

Sold the noncash assets for $80,000 in cash.

(b)

Divided the loss on realization.

(c)

Paid the liabilities.

(d)

Received cash from the partner with the deficiency.

(e)

Distributed the cash to the partners.

(a)

Sold the noncash assets for $80,000 in cash.

(b)

Divided the loss on realization.

(c)

Paid the liabilities.

(d)

Received cash from the partner with the deficiency.

(e)

Distributed the cash to the partners.

Explanation / Answer

a Cash 80,000.00 Loss on Realization 80,000.00       Assets 160,000.00 b M Capital 32,000.00 N Capital 32,000.00 O Capital 16,000.00      Loss onRealization 80,000.00 c Liabilities 50,000.00       Cash 50,000.00 d Cash 12,000.00      N CapitalAccount 12,000.00 e M Capital 38,000.00 O Capital 14,000.00        Cash      52,000.00

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.