Required Prepare journal entries for (a) the sale of equipment, (b) the allocation of its gain or loss, (c) the payment of liabilities at book value, and (d) the distribution of cash in each of the following separate cases: Equipment is sold for (1) $650,000; (2) $530,000; (3) $200,000 and partners with capital deficits pay their deficits in cash; and (4) $150,000 and partners with deficits do not pay their deficits. (Round to the nearest dollar.) Lasu, Ramirez, and Toney, who share income and loss in a 2:1:2 ratio (in percents: Lasu, 40%; Ramirez,20%; and Toney, 40%), plan to liquidate their partnership. At liquidation, their balance sheet appears asfollows.Balance SheetAssetsLlabilitlesCash....$348,600Accounts payable ..$342,600Equipment617,200EquityLasu, Capital ...Ramirez, Capital .Toney, Capital .Total liabilities and equity300,400195,800127,000$965,800Total assets$965,800

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Description: Required Prepare journal entries for (a) the sale of equipment, (b) the allocation of its gain or loss, (c) the payment of liabilities at book value, and (d) the distribution of cash in each of the following separate cases: Equipment is sold for (1)

Liquidation of partnership: When the partners had been decided to the winding up of our business…

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Lasu, Ramirez, and Toney, who share income and loss in a 2:1:2 ratio (in percents: Lasu, 40%; Ramirez, 20%; and Toney, 40%), plan to liquidate their partnership. At liquidation, their balance sheet appears as follows. Balance Sheet Assets Llabilitles Cash.... $348,600 Accounts payable .. $342,600 Equipment 617,200 Equity Lasu, Capital ... Ramirez, Capital . Toney, Capital . Total liabilities and equity 300,400 195,800 127,000 $965,800 Total assets $965,800

Lasu, Ramirez, and Toney, who share income and loss in a 2:1:2 ratio (in percents: Lasu, 40%; Ramirez, 20%; and Toney, 40%), plan to liquidate their partnership. At liquidation, their balance sheet appears as follows. Balance Sheet Assets Llabilitles Cash.... $348,600 Accounts payable .. $342,600 Equipment 617,200 Equity Lasu, Capital ... Ramirez, Capital . Toney, Capital . Total liabilities and equity 300,400 195,800 127,000 $965,800 Total assets $965,800

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 17CE

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