The following transactions occur in liquidating this business:

Distributed cash based on safe capital balances immediately to the partners.Liquidation expenses of $8,000 are estimated as a basis for this computation.

Sold noncash assets with a book value of $94,000 for $60,000.

Paid all liabilities.

Distributed cash based on safe capital balances again.

Sold remaining noncash assets for $51,000.

Paid actual liquidation expenses of $6,000 only.

Distributed remaining cash to the partners and closed the financial records of the business permanently.

Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation.

30. The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its business property. A balance sheet drawn up at this time shows the following account balances Cash 60,000 Liabilities 40,000 Noncash assets. 219,000 Frick, capital (60%) 129,000 Wilson, Capital (20% 35,000 Clarke, capital (20%) 75,000 $279,000 Total assets $279,000 Total liabilities and capital

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *