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Non-liquid assets Debts with external creditors loan for pay to social cap Capital by Ace 20% Capital by Becky 50% Capital by Cap 30% The profits and losses of Ace, Becky and Cap partnership are shared in the ratio of 2:5:3. The illiquid assets were sold for $200,000 in cash. Becky is personally insolvent. Required: Prepare all the journal entries necessary to liquidate the partnership. $420,000 $165,000 $5,000 $100,000 $80,000 $200,000

Non-liquid assets Debts with external creditors loan for pay to social cap Capital by Ace 20% Capital by Becky 50% Capital by Cap 30% The profits and losses of Ace, Becky and Cap partnership are shared in the ratio of 2:5:3. The illiquid assets were sold for $200,000 in cash. Becky is personally insolvent. Required: Prepare all the journal entries necessary to liquidate the partnership. $420,000 $165,000 $5,000 $100,000 $80,000 $200,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The Ace, Becky, and Cap partnership was in the process of liquidating its assets and going out of business. These are the balances of the company accounts immediately before liquidation: Cash Non-liquid assets Debts with external creditors loan for pay to social cap Capital by Ace 20% Capital by Becky 50% Capital by Cap 30% The profits and losses of Ace, Becky and Cap partnership are shared in the ratio of 2:5:3. The illiquid assets were sold for $200,000 in cash. Becky is personally insolvent. Required: Prepare all the journal entries necessary to liquidate the partnership. $130,000 $420,000 $165,000 $5,000 $100,000 $80,000 $200,000
Transcribed Image Text:The Ace, Becky, and Cap partnership was in the process of liquidating its assets and going out of business. These are the balances of the company accounts immediately before liquidation: Cash Non-liquid assets Debts with external creditors loan for pay to social cap Capital by Ace 20% Capital by Becky 50% Capital by Cap 30% The profits and losses of Ace, Becky and Cap partnership are shared in the ratio of 2:5:3. The illiquid assets were sold for $200,000 in cash. Becky is personally insolvent. Required: Prepare all the journal entries necessary to liquidate the partnership. $130,000 $420,000 $165,000 $5,000 $100,000 $80,000 $200,000
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