Question

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                       $ 131,000

 Accounts receivable                      132,000 March, capital                      60,000

 Inventory                                122,000 April, capital                      99,000

 Land, building, and equipment (net)      71,000  May, capital                        70,000

 Total assets                           $ 360,000 Total liabilities and capital     $ 360,000

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.) 

a. Sold all inventory for $80,000 cash. 

b. Paid $14,700 in liquidation expenses. 

c. Paid $64,000 of the partnership’s liabilities. 

d. Collected $84,000 of the accounts receivable. 

e. Distributed safe cash balances; the partners anticipate no further liquidation expenses. 

f. Sold remaining accounts receivable for 35 percent of face value. 

g. Sold land, building, and equipment for $41,000. 

h. Paid all remaining liabilities of the partnership.

i. Distributed cash held by the business to the partners.

Answer 1

A similar method as the previous commenter, but some answers were a little wrong, so here's the correct version.