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ezto.mheducation.c Adobe ID adams online taxes adams tax forrms Time Sheets RobertHaif Robert Ha Neuse River Galeighnc.gov papers ord Chapter 10 Homework Question 3 (of 5) 3. 20.00 points Fred and George have been in partnership for many years. The partners, who share profits and losses on a 60:40 basis, respectively, wish to retire and have agreed to liquidate the business. Liquidation expenses are estimated to be $10,000. At the date the partnership ceases operations, the balance sheet is as follows: Cash Noncash assets $100,000 Liabilibes 200,000 Fred, capital 80,000 100,000 120,000 George, capital Total assets 300,000 Total liabilities and capital $300,000 1. Prepare journal entries for the following transactions: (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) a. Distributed safe cash payments to the partners. b. Paid $40,000 of the partnership's liabilities C. Sold noncash assets for $220,000 Distributed safe cash payments to the partners e. Paid all remaining partnership liabilities of $40,000. f. Paid $8,000 in liquidation expenses; no further expenses will be incurred. g. Distributed remaining cash held by the business to the partners View transaction list Journal entry worksheet Record the initial distribution of available cash based on safe capital balance

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Journal entries on liquidation of partnership Ref Account Title Debit Credit a Fred, Capital 4545 George, Capital 5455 Cash 10000 (Distribution of safe cash) b Liabilities 40000 Cash 40000 (Payment of $40,000 for liabilities) c Cash 220000 Non-cash assets 200000 Fred, Capital 12000 George, Capital 8000 (Sale of non-cash assets and distribution of profit to Partners) d Fred, Capital 100000 George, Capital 120000 Cash 220000 (Distribution of safe cash) e Liabilities 40000 Cash 40000 (Payment of remaining liabilities) f Fred, Capital 4800 George, Capital 3200 Cash 8000 (Payment of liquidation expenses) g Fred, Capital 2655 George, Capital 655 Cash 2000 (Distribution of remaining cash)

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