2022January 1- The partners decide to liquidate the partnership. They have the following balances:Cash $93,667Accounts Receivable $4 500Equipment $ 46,250Accumulated Depreciation $ 25 000Accounts Payable $4417The partners were able to collect $3 500 of the accounts receivable and sell the equipment for $57,250a) Record all journal entries to dissolve the partnership in the following order.i) Record the collection of the A/R and sale of the equipment. You need to close out the A/R, Equipmentand Accumulated Amortization Accounts. There will be either a Gain on Disposal or Loss onDisposal of Assets account needed to balance the journal entry.ii) Allocate the Gain or Loss on Disposal to the two partners capital accounts.iii) Pay off any outstanding liabilities.iv) Pay out the Capital balances to the remaining partners from the Bank account.Do the balance sheet on the left to help you determine the new Bank balanceand the final Capital balances. Jan202211Balance SheetAssetsCashEquipmentAccumulated AmortizationA/RLiabilities & EquityAccounts PayableBrady, CapitalMcNabb, CapitalBefore LiqAfter Liq

Partnership: Partnership is a form of business organization in which two or more than two…

2022 January 1-The partners decide to liquidate the partnership. They have the following balances: Cash $93,667 Accounts Receivable $4 500 Equipment $ 46,250 Accumulated Depreciation $ 25 000 Accounts Payable $4417 The partners were able to collect $3 500 of the accounts receivable and sell the equipment for $57,250

2022 January 1-The partners decide to liquidate the partnership. They have the following balances: Cash $93,667 Accounts Receivable $4 500 Equipment $ 46,250 Accumulated Depreciation $ 25 000 Accounts Payable $4417 The partners were able to collect $3 500 of the accounts receivable and sell the equipment for $57,250

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter19: Accounting For Partnerships

Section: Chapter Questions

Problem 9SPA

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