In: Accounting
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.)