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 Noncash assets Total assets $ 68,000 270,000 $ 338,000 Liabilities Alex, capital Bess, capital Total liabilities and capital Part A: Prepare journal entries for the following transactions that occurred in chronological order: a. Distributed safe cash payments to the partners. b. Paid $29,400 of the partnership's liabilities. c. Sold noncash assets for $289,000. d. Distributed safe cash payments to the partners. e. Paid remaining partnership liabilities of $19,600. f. Paid $6,300 in liquidation expenses; no further expenses will be incurred. g. Distributed remaining cash held by the business to the partners. $ 49,000 189,000 100,000 $ 338,000 Part B: Prepare a final statement of partnership liquidation.
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 Noncash assets Total assets $ 68,000 270,000 $ 338,000 Liabilities Alex, capital Bess, capital Total liabilities and capital Part A: Prepare journal entries for the following transactions that occurred in chronological order: a. Distributed safe cash payments to the partners. b. Paid $29,400 of the partnership's liabilities. c. Sold noncash assets for $289,000. d. Distributed safe cash payments to the partners. e. Paid remaining partnership liabilities of $19,600. f. Paid $6,300 in liquidation expenses; no further expenses will be incurred. g. Distributed remaining cash held by the business to the partners. $ 49,000 189,000 100,000 $ 338,000 Part B: Prepare a final statement of partnership liquidation.
Chapter21: Partnerships
Section: Chapter Questions
Problem 57P
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Transcribed Image Text: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
Noncash assets
Total assets
$ 68,000
270,000
Liabilities
Alex, capital
Bess, capital
$ 338,000 Total liabilities and capital
Part A: Prepare journal entries for the following transactions that occurred in chronological order:
a. Distributed safe cash payments to the partners.
b. Paid $29,400 of the partnership's liabilities.
c. Sold noncash assets for $289,000.
d. Distributed safe cash payments to the partners.
e. Paid remaining partnership liabilities of $19,600.
f. Paid $6,300 in liquidation expenses; no further expenses will be incurred.
g. Distributed remaining cash held by the business to the partners.
$ 49,000
189,000
100,000
$ 338,000
Part B: Prepare a final statement of partnership liquidation.
Transcribed Image Text:Part B: Prepare a final statement of partnership liquidation.
Complete this question by entering your answers in the tabs below.
Required A Required B
Prepare a final statement of partnership liquidation. (Amounts to be deducted should be entered in minus sign.)
Beginning balances
Distribution to partners
Paid liabilities
Sold noncash assets
Updated balances
Distribution to partners
Updated balances
Paid liabilities
Paid liquidation expenses
Updated balances
Distribution to partners
Closing balances
ALEX AND BESS PAR
RSHIP
Statement of Partnership Liquidation
Non-cash
Assets
Cash
Liabilities Alex, Capital Bess, Capital
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