Question

In: Accounting

March, April, and May have been in partnership for a number of years. The partners allocate...

March, April, and May have been in partnership for a number of years. The partners allocate all profits and losses on a 2:3:1 basis, respectively. Recently, each partner has become personally insolvent and, thus, the partners have decided to liquidate the business in hopes of remedying their personal financial problems. As of September 1, the partnership’s balance sheet is as follows:

Cash $ 18,000 Liabilities $ 66,000
Accounts receivable 98,000 March, capital 32,000
Inventory 75,000 April, capital 82,000
Land, building, and equipment (net) 42,000 May, capital 53,000
Total assets $ 233,000 Total liabilities and capital $ 233,000

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.)

  1. Sold all inventory for $63,000 cash.
  2. Paid $9,600 in liquidation expenses.
  3. Paid $47,000 of the partnership’s liabilities.
  4. Collected $53,000 of the accounts receivable.
  5. Distributed safe cash balances; the partners anticipate no further liquidation expenses.
  6. Sold remaining accounts receivable for 20 percent of face value.
  7. Sold land, building, and equipment for $24,000.
  8. Paid all remaining liabilities of the partnership.
  9. Distributed cash held by the business to the partners.

Solutions

Expert Solution


Related Solutions

March, April, and May have been in partnership for a number of years. The partners allocate...
March, April, and May have been in partnership for a number of years. The partners allocate all profits and losses on a 2:3:1 basis, respectively. Recently, each partner has become personally insolvent and, thus, the partners have decided to liquidate the business in hopes of remedying their personal financial problems. As of September 1, the partnership’s balance sheet is as follows: Cash $ 30,000 Liabilities $ 119,000 Accounts receivable 122,000 March, capital 42,000 Inventory 99,000 April, capital 94,000 Land, building,...
March, April, and May have been in partnership for a number of years. The partners allocate...
March, April, and May have been in partnership for a number of years. The partners allocate all profits and losses on a 4:2:2 basis, respectively. Recently, each partner has become personally insolvent and, thus, the partners have decided to liquidate the business in hopes of remedying their personal financial problems. As of September 1, the partnership’s balance sheet is as follows: Cash $ 17,000 Liabilities $ 53,000 Accounts receivable 87,000 March, capital 34,000 Inventory 86,000 April, capital 81,000 Land, building,...
March, April, and May have been in partnership for a number of years. The partners allocate...
March, April, and May have been in partnership for a number of years. The partners allocate all profits and losses on a 4:2:2 basis, respectively. Recently, each partner has become personally insolvent and, thus, the partners have decided to liquidate the business in hopes of remedying their personal financial problems. As of September 1, the partnership’s balance sheet is as follows: Cash $ 25,000 Liabilities $ 84,000 Accounts receivable 112,000 March, capital 56,000 Inventory 94,000 April, capital 89,000 Land, building,...
March, April, and May have been in partnership for a number of years. The partners allocate...
March, April, and May have been in partnership for a number of years. The partners allocate all profits and losses on a 3:3:2 basis, respectively. Recently, each partner has become personally insolvent and, thus, the partners have decided to liquidate the business in hopes of remedying their personal financial problems. As of September 1, the partnership’s balance sheet is as follows:   Cash $ 14,000      Liabilities $ 58,000      Accounts receivable 87,000      March, capital 28,000      Inventory 80,000   ...
March, April, and May have been in partnership for a number of years. The partners allocate...
March, April, and May have been in partnership for a number of years. The partners allocate all profits and losses on a 2:3:1 basis, respectively. Recently, each partner has become personally insolvent and, thus, the partners have decided to liquidate the business in hopes of remedying their personal financial problems. As of September 1, the partnership’s balance sheet is as follows: Cash $ 21,000 Liabilities $ 75,000 Accounts receivable 104,000 March, capital 35,000 Inventory 81,000 April, capital 85,000 Land, building,...
March, April, and May have been in partnership for a number of years. The partners allocate...
March, April, and May have been in partnership for a number of years. The partners allocate all profits and losses on a 4:2:2 basis, respectively. Recently, each partner has become personally insolvent and, thus, the partners have decided to liquidate the business in hopes of remedying their personal financial problems. As of September 1, the partnership’s balance sheet is as follows: Cash $ 27,000 Liabilities $ 91,000 Accounts receivable 116,000 March, capital 58,000 Inventory 96,000 April, capital 91,000 Land, building,...
March, April, and May have been in partnership for a number of years. The partners allocate...
March, April, and May have been in partnership for a number of years. The partners allocate all profits and losses on a 4:2:2 basis, respectively. Recently, each partner has become personally insolvent and, thus, the partners have decided to liquidate the business in hopes of remedying their personal financial problems. As of September 1, the partnership’s balance sheet is as follows: Cash $ 35,000 Liabilities $ 131,000 Accounts receivable 132,000 March, capital 60,000 Inventory 122,000 April, capital 99,000 Land, building,...
​March, April, and May have been in partnership for a number of years.
March, April, and May have been in partnership for a number of years. The partners allocate all profits and losses on a 4:2:2 basis, respectively. Recently, each partner has become personally insolvent and, thus, the partners have decided to liquidate the business in hopes of remedying their personal financial problems. As of September 1, the partnership’s balance sheet is as follows:  Cash                                   Ș 35,000  Liabilities ...
March, April, and May have been in partnership for a number of years. The partners allocate all profits and losses on a 4:2:2 basis, respectively. Recently, each partner has become personally insolvent and, thus, the partners have decided to liquidate the
March, April, and May have been in partnership for a number of years. The partners allocate all profits and losses on a 4:2:2 basis, respectively. Recently, each partner has become personally insolvent and, thus, the partners have decided to liquidate the business in hopes of remedying their personal financial problems. As of September 1, the partnership’s balance sheet is as follows: Cash$26,000Liabilities$95,000Accounts receivable114,000March, capital57,000Inventory104,000April, capital90,000Land, building, and equipment (net)59,000May, capital61,000Total assets$303,000Total liabilities and capital$303,000 Prepare journal entries for the following transactions: (Do not...
Joe, Jim, and Jay have been partners for several years. The partners allocate all profits and...
Joe, Jim, and Jay have been partners for several years. The partners allocate all profits and losses on a 4:4:2 basis, respectively. Now, each partner has become personally insolvent and, the three partners have decided to liquidate the business in hopes of solving their personal financial issues. As of September 1, the partnership’s balance sheet is as follows: Assets Liabilities and Capital Cash $ 35,000 Liabilities $ 131,000 Accounts receivable 132,000 Joe, capital 60,000 Inventory 122,000 Jim, capital 99,000 Land,...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT