PR 12-5A Statement of partnership liquidation OBJ. 4 After the accounts are clos

Question

PR 12-5A Statement of partnership liquidation OBJ. 4 After the accounts are closed on February 3, prior to liquidating the partnership, the capital accounts of William Gerloff, Joshua Chu, and Courtney Jewett are $19,300, $4,500, and $22,300, respectively. Cash and noncash assets total $5,200 and $55,900, respectively. Amounts owed to creditors total $15,000. The partners share income and losses in the ratio of 2:1:1. Between February 3 and February 28, the noncash assets are sold for $34,300, the partner with the capital deficiency pays the deficiency to the partnership, and the liabilities are paid.

Explanation / Answer

Answer 1. Cash Non Cash Assets Creditors William Gerloff Joshua Chu Courtney Jewett Balance            5,200            55,900          15,000          19,300              4,500            22,300 Sale of Non Cash Assets          34,300          (55,900)                   -         (10,800)           (5,400)            (5,400) Sub-total          39,500                     -            15,000            8,500               (900)            16,900 Payment of Liabilities       (15,000)                     -         (15,000)                   -                       -                       -   Sub-total          24,500                     -                     -              8,500               (900)            16,900 Receipt of Deiciency                900                     -                     -                     -                   900                     -   Sub-total          25,400                     -                     -              8,500                     -              16,900 Cash paid to Partners       (25,400)          (8,500)                     -            (16,900) Sub-total                   -                       -                     -                     -                       -                       -   Answer 2. Cash Non Cash Assets Creditors William Gerloff Joshua Chu Courtney Jewett Balance            5,200            55,900          15,000          19,300              4,500            22,300 Sale of Non Cash Assets          34,300          (55,900)                   -         (10,800)           (5,400)            (5,400) Sub-total          39,500                     -            15,000            8,500               (900)            16,900 Payment of Liabilities       (15,000)                     -         (15,000)                   -                       -                       -   Sub-total          24,500                     -                     -              8,500               (900)            16,900 Deficiency of Joshua Chu                   -                       -                     -               (600)                 900                (300) Sub-total          24,500                     -                     -              7,900                     -              16,600 Cash paid to Partners       (24,500)          (7,900)                     -            (16,600) Sub-total                   -                       -                     -                     -                       -                       -   Answer 2. Journal Entry Date Particulars Dr. Amt. Cr. Amt. a. William Gerloff, Capitak            600.00 Courtney Jewett, Capital            300.00    Joshua Chu, Capital            900.00 (record the distribution of capital deficiency) b. William Gerloff, Capitak        7,900.00 Courtney Jewett, Capital      16,600.00     Cash      24,500.00 (record the distribution of cash to partners)

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

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