Homework Help is Here – Start Your Trial Now!
Business
Accounting
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 $5,500. At the date the partnership ceases operations, the balance sheet is as follows: Cash Noncash assets Total assets $ 48,000 135,000 $ 183,000 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 $21,600 of the partnership's liabilities. c. Sold noncash assets for $147,000. d. Distributed safe cash payments to the partners. e. Paid remaining partnership liabilities of $14,400. f. Paid $4,100 in liquidation expenses; no further expenses will be incurred. g. Distributed remaining cash held by the business to the partners. $ 36,000 94,500 52,500 $ 183,000 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 $5,500. At the date the partnership ceases operations, the balance sheet is as follows: Cash Noncash assets Total assets $ 48,000 135,000 $ 183,000 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 $21,600 of the partnership's liabilities. c. Sold noncash assets for $147,000. d. Distributed safe cash payments to the partners. e. Paid remaining partnership liabilities of $14,400. f. Paid $4,100 in liquidation expenses; no further expenses will be incurred. g. Distributed remaining cash held by the business to the partners. $ 36,000 94,500 52,500 $ 183,000 Part B: Prepare a final statement of partnership liquidation.

SWFT Corp Partner Estates Trusts
SWFT Corp Partner Estates Trusts
42nd Edition
ISBN:9780357161548
Author:Raabe
Publisher:Raabe
Chapter11: Partnerships: Distributions, Transfer Of Interests, And Terminations
Section: Chapter Questions
Problem 27P
See similar textbooks
icon
Related questions
Question

D1.

I need help with the numbers for A & D for part A. I need the whole thing for part B. 

 

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 $5,500. At the date the partnership ceases operations, the balance sheet is as follows: Cash Noncash assets Total assets $ 48,000 135,000 $ 183,000. 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 $21,600 of the partnership's liabilities. c. Sold noncash assets for $147,000. d. Distributed safe cash payments to the partners. e. Paid remaining partnership liabilities of $14,400. f. Paid $4,100 in liquidation expenses; no further expenses will be incurred. g. Distributed remaining cash held by the business to the partners. $ 36,000 94,500 52,500 $ 183,000. Part B: Prepare a final statement of partnership liquidation.
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 $5,500. At the date the partnership ceases operations, the balance sheet is as follows: Cash Noncash assets Total assets $ 48,000 135,000 $ 183,000. 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 $21,600 of the partnership's liabilities. c. Sold noncash assets for $147,000. d. Distributed safe cash payments to the partners. e. Paid remaining partnership liabilities of $14,400. f. Paid $4,100 in liquidation expenses; no further expenses will be incurred. g. Distributed remaining cash held by the business to the partners. $ 36,000 94,500 52,500 $ 183,000. Part B: Prepare a final statement of partnership liquidation.
No 1 2 3 4 Transaction a. b. C. d. Bess, Capital Cash Liabilities Cash Cash Alex, Capital Bess, Capital Noncash assets Alex, Capital Bess, Capital Cash General Journal >> ›› 3000 300 Debit 5,500 x 21,600 147,000 99,050 48,950 Credit 5,500 21,600 8,400 3,600 135,000 148,000
Transcribed Image Text:No 1 2 3 4 Transaction a. b. C. d. Bess, Capital Cash Liabilities Cash Cash Alex, Capital Bess, Capital Noncash assets Alex, Capital Bess, Capital Cash General Journal >> ›› 3000 300 Debit 5,500 x 21,600 147,000 99,050 48,950 Credit 5,500 21,600 8,400 3,600 135,000 148,000
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting for Liquidation of Companies
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
SWFT Corp Partner Estates Trusts
SWFT Corp Partner Estates Trusts
Accounting
ISBN:
9780357161548
Author:
Raabe
Publisher:
Cengage
Century 21 Accounting Multicolumn Journal
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
SWFT Comprehensive Vol 2020
SWFT Comprehensive Vol 2020
Accounting
ISBN:
9780357391723
Author:
Maloney
Publisher:
Cengage
SWFT Comprehensive Volume 2019
SWFT Comprehensive Volume 2019
Accounting
ISBN:
9780357233306
Author:
Maloney
Publisher:
Cengage
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
SWFT Essntl Tax Individ/Bus Entities 2020
SWFT Essntl Tax Individ/Bus Entities 2020
Accounting
ISBN:
9780357391266
Author:
Nellen
Publisher:
Cengage
SEE MORE TEXTBOOKS