The partners in Sandhill Company decide to liquidate the firm when the balance sheet shows the...

The partners in Sandhill Company decide to liquidate the firm when the balance sheet shows the following.

Sandhill Company Balance Sheet May 31, 2020
Assets			Liabilities and Owners’ Equity
Cash	$29,100		Notes payable	$13,300
Accounts receivable	25,500		Accounts payable	26,700
Allowance for doubtful accounts	(1,500	)	Salaries and wages payable	4,000
Inventory	35,000		A. Jamison, capital	33,500
Equipment	21,400		S. Moyer, capital	24,000
Accumulated depreciation—equipment	(5,300	)	P. Roper, capital	2,700
	$104,200			$104,200

The partners share income and loss 5:3:2. During the process of liquidation, the following transactions were completed in the following sequence.

1.		A total of $54,400 was received from converting noncash assets into cash.
2.		Gain or loss on realization was allocated to partners.
3.		Liabilities were paid in full.
4.		P. Roper paid his capital deficiency.
5.		Cash was paid to the partners with credit balances.

Prepare the entries to record the transactions.

Post to the cash and capital account

Assume that Roper is unable to pay the capital deficiency. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

(1)		Prepare the entry to allocate Roper’s debit balance to Jamison and Moyer.
(2)		Prepare the entry to record the final distribution of cash.

Solutions

Expert Solution

PART A

PART B

ekkarill92 answered 10 months ago

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