Question
In: Accounting
Alex and Bess have been in partnership for many years. The partners, who share profits and...
Alex and Bess 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 $6,500. At the date the partnership ceases operations, the balance sheet is as follows:
| Cash | $ | 53,000 | Liabilities | $ | 41,500 |
| Noncash assets | 120,000 | Alex, capital | 72,000 | ||
| Bess, capital | 59,500 | ||||
| Total assets | $ | 173,000 | Total liabilities and capital | $ | 173,000 |
Part A: Prepare journal entries for the following transactions:
a. Distributed safe cash payments to the partners.
b. Paid $24,900 of the partnership’s liabilities.
c. Sold noncash assets for $131,500.
d. Distributed safe cash payments to the partners.
e. Paid remaining partnership liabilities of $16,600.
f. Paid $5,200 in liquidation expenses; no further expenses will be incurred.
g. Distributed remaining cash held by the business to the partners.
Part B: Prepare a final statement of partnership liquidation.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Alex and Bess have been in partnership for many years. The partners, who share profits and...
Alex and Bess 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 $5,000. At the
date the partnership ceases operations, the balance sheet is as
follows:
Cash
$
50,000
Liabilities
$
40,000
Noncash assets
150,000
Alex, capital
90,000
Bess, capital
70,000
Total assets
$
200,000
Total liabilities and capital
$
200,000
Part A: Prepare...
Alex and Bess have been in partnership for many years. The partners, who share profits and...
Alex and Bess 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 $9,500. At the
date the partnership ceases operations, the balance sheet is as
follows:
Cash
$
59,000
Liabilities
$
44,500
Noncash assets
180,000
Alex, capital
108,000
Bess, capital
86,500
Total assets
$
239,000
Total liabilities and capital
$
239,000
Part A: Prepare...
Alex and Bess have been in partnership for many years. The partners, who share profits and...
Alex and Bess 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 $9,500. At the
date the partnership ceases operations, the balance sheet is as
follows:
Cash
$
71,000
Liabilities
$
61,000
Noncash assets
300,000
Alex, capital
180,000
Bess, capital
130,000
Total assets
$
371,000
Total liabilities and
capital
$
371,000
Part A: Prepare...
Alex and Bess have been in partnership for many years. The partners, who share profits and...
Alex and Bess 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 $6,500. At the
date the partnership ceases operations, the balance sheet is as
follows:
Cash
$
53,000
Liabilities
$
41,500
Noncash assets
120,000
Alex, capital
72,000
Bess, capital
59,500
Total assets
$
173,000
Total liabilities and capital
$
173,000
Part A: Prepare...
Alex and Bess have been in partnership for many years. The partners, who share profits and...
Alex and Bess have been in partnership for many years. The
partners, who share profits and losses on a 70:30 basis,
respectively, wish to retire and have agreed to liquidate the
business. Liquidation expenses are estimated to be $4,500. At the
date the partnership ceases operations, the balance sheet is as
follows:
Cash
$
46,000
Liabilities
$
35,000
Noncash assets
115,000
Alex, capital
80,500
Bess, capital
45,500
Total assets
$
161,000
Total liabilities and capital
$
161,000
Part A: Prepare...
Alex and Bess have been in partnership for many years. The partners, who share profits and...
Alex and Bess 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 $8,500. At the
date the partnership ceases operations, the balance sheet is as
follows: Cash $ 57,000 Liabilities $ 43,500 Noncash assets 160,000
Alex, capital 96,000 Bess, capital 77,500 Total assets $ 217,000
Total liabilities and capital $ 217,000 Part A: Prepare...
Alex and Bess have been in partnership for many years. The partners, who share profits and...
Alex and Bess have been in partnership for many years. The
partners, who share profits and losses on a 70:30 basis,
respectively, wish to retire and have agreed to liquidate the
business. Liquidation expenses are estimated to be $8,000. At the
date the partnership ceases operations, the balance sheet is as
follows:
Cash
$
56,000
Liabilities
$
43,000
Noncash assets
150,000
Alex, capital
105,000
Bess, capital
58,000
Total assets
$
206,000
Total liabilities and capital
$
206,000
Part A: Prepare...
Alex and Bess have been in partnership for many years. The partners, who share profits and...
Alex and Bess 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 $9,500. At the
date the partnership ceases operations, the balance sheet is as
follows:
Cash
$
71,000
Liabilities
$
61,000
Noncash assets
300,000
Alex, capital
180,000
Bess, capital
130,000
Total assets
$
371,000
Total liabilities and
capital
$
371,000
Part A: Prepare...
Alex and Bess have been in partnership for many years. The partners, who share profits and...
Alex and Bess have been in partnership for many years. The
partners, who share profits and losses on a 70:30 basis,
respectively, wish to retire and have agreed to liquidate the
business. Liquidation expenses are estimated to be $8,000. At the
date the partnership ceases operations, the balance sheet is as
follows: Cash $ 56,000 Liabilities $ 43,000 Noncash assets 150,000
Alex, capital 105,000 Bess, capital 58,000 Total assets $ 206,000
Total liabilities and capital $ 206,000 Part A: Prepare...
Alex and Bess have been in partnership for many years. Thepartners, who share profits and...
Alex and Bess 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 $9,000. At the
date the partnership ceases operations, the balance sheet is as
follows:Cash$58,000Liabilities$44,000Noncash assets170,000Alex, capital102,000Bess, capital82,000Total assets$228,000Total liabilities and capital$228,000Part A: Prepare journal entries for the following
transactions:Distributed safe cash payments to the partners.Paid $26,400 of the partnership’s liabilities.Sold noncash assets for...
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