Masters, Hardy, and Rowen are dissolving their partnership. Their partnership agreement allocates income and losses equally among the partners. The current period's ending capital account balances are Masters, $16,100, Hardy, $16,100, Rowen, $(3,100). After all the assets are sold and liabilities are paid, but before any contributions to cover any deficiencies, there is $29,100 in cash to be distributed. Rowen pays $3,100 to cover the deficiency in his account. The general journal entry to record the final distribution would be:
Masters, Hardy, and Rowen are dissolving their partnership. Their partnership agreement allocates income and losses equally among the partners. The current period's ending capital account balances are Masters, $16,100, Hardy, $16,100, Rowen, $(3,100). After all the assets are sold and liabilities are paid, but before any contributions to cover any deficiencies, there is $29,100 in cash to be distributed. Rowen pays $3,100 to cover the deficiency in his account. The general journal entry to record the final distribution would be:
Chapter21: Partnerships
Section: Chapter Questions
Problem 57P
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Masters, Hardy, and Rowen are dissolving their
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