Required Information [The following information applies to the questions displayed below] The partnership of Garcia, Iglesias, and Kassabian was formed several years ago as a local tax preparation firm. Two partners have reached retirement age, and the partners have decided to terminate operations and liquidate the business Liquidation expenses of $50,000 are expected. The partnership balance sheet at the start of liquidation is as follows: Cash Accounts receivable office equipment (net) Building (net) Land Total assets $46,000 76,000 Liabilities Garcia, lean Garcia, capital (25) 130,000 Iglesias, capital (2) 180,000 $558,000 Kassabian, capital () Total liabilities and capital $558,000 The following transactions transpire in chronological order during the liquidation of the partnership: 1. Collected 90 percent of the accounts receivable and wrote the remainder off as uncollectible 2. Sold the office equipment for $28,000. the building for $142.000, Q, and the land for $184,000. 3. Distributed safe payments of cash 4. Paid all liabilities in full 5. Paid actual liquidation expenses of $38.000 only. 6. Made final cash distributions to the partners. Required: Prepare journal entries to record these liquidation transactions Note: If no entry is required for a transaction/event, select "No journal entry required" In the first account fleld. No Transaction A 1 Cash Garcia, capital glesias, capital Kassabian capital Accounts receivable B 2 Cash Garcia, capital General Journal Iglesias capital Kassabian, capital Office equipment (net) Building (net) Land C 3 Garoa loan Garcia, capital glesias capital Kassabian, capital Cash D ⋅ Liabilities Cash E 5 Garca, capital F B glesias capital Kassabian capital Cash Garcia, capital Iglesias, capital Kassabian, capital Cash 00000 Debit 68.400 1.900 0000000 00000 00 0000 0000 1.900 Credit 1.800 76.000 354.000 20.500 20.500 41.000- 66.000 190.000 180.000 40.000 -> 152.000 O 22.800 10.520 O 224.000 180.000 186.000 0.500 - 500 19.000 10 38.000 10 10
Required Information [The following information applies to the questions displayed below] The partnership of Garcia, Iglesias, and Kassabian was formed several years ago as a local tax preparation firm. Two partners have reached retirement age, and the partners have decided to terminate operations and liquidate the business Liquidation expenses of $50,000 are expected. The partnership balance sheet at the start of liquidation is as follows: Cash Accounts receivable office equipment (net) Building (net) Land Total assets $46,000 76,000 Liabilities Garcia, lean Garcia, capital (25) 130,000 Iglesias, capital (2) 180,000 $558,000 Kassabian, capital () Total liabilities and capital $558,000 The following transactions transpire in chronological order during the liquidation of the partnership: 1. Collected 90 percent of the accounts receivable and wrote the remainder off as uncollectible 2. Sold the office equipment for $28,000. the building for $142.000, Q, and the land for $184,000. 3. Distributed safe payments of cash 4. Paid all liabilities in full 5. Paid actual liquidation expenses of $38.000 only. 6. Made final cash distributions to the partners. Required: Prepare journal entries to record these liquidation transactions Note: If no entry is required for a transaction/event, select "No journal entry required" In the first account fleld. No Transaction A 1 Cash Garcia, capital glesias, capital Kassabian capital Accounts receivable B 2 Cash Garcia, capital General Journal Iglesias capital Kassabian, capital Office equipment (net) Building (net) Land C 3 Garoa loan Garcia, capital glesias capital Kassabian, capital Cash D ⋅ Liabilities Cash E 5 Garca, capital F B glesias capital Kassabian capital Cash Garcia, capital Iglesias, capital Kassabian, capital Cash 00000 Debit 68.400 1.900 0000000 00000 00 0000 0000 1.900 Credit 1.800 76.000 354.000 20.500 20.500 41.000- 66.000 190.000 180.000 40.000 -> 152.000 O 22.800 10.520 O 224.000 180.000 186.000 0.500 - 500 19.000 10 38.000 10 10
Chapter11: Partnerships: Distributions, Transfer Of Interests, And Terminations
Section: Chapter Questions
Problem 27P
Related questions
Question
am. 112.
![Required Information
[The following information applies to the questions displayed below]
The partnership of Garcia, Iglesias, and Kassabian was formed several years ago as a local tax preparation firm. Two
partners have reached retirement age, and the partners have decided to terminate operations and liquidate the business.
Liquidation expenses of $50,000 are expected. The partnership balance sheet at the start of liquidation is as follows:
Cash
Accounts receivable
Office equipment (net)
Building (net)
Land
Total assets
Liabilities
Garcia, loan
$ 46,000
76,000
$186,000
46,000
66,000
Garcia, capital (25)
130,000
190,000
Iglesias, capital (25%)
46,000
180,000
$558,000
Kassabian, capital (se)
150,000
Total liabilities and capital
$558,000
The following transactions transpire in chronological order during the liquidation of the partnership:
1. Collected 90 percent of the accounts receivable and wrote the remainder off as uncollectible.
2. Sold the office equipment for $28,000, the building for $142.000, and the land for $184,000.
3. Distributed safe payments of cash.
4. Paid all liabilities in full.
5. Paid actual liquidation expenses of $38,000 only.
6. Made final cash distributions to the partners.
Required:
Prepare journal entries to record these liquidation transactions.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
No
Transaction
A
1
Cash
Garcia, capital
Iglesias, capital
Kassabian, capital
Accounts receivable
General Journal
Debit
Credit
.
68.400
°
1.000
°
1.000
0
3.800
0
76.000
B
2
Cash
354.000
Garcia, capital
0
20.500
Iglesias, capital
20.500
Kassabian, capital
0
41.000
Office equipment (net)
·
66.000
Building (net)
°
190.000
Land
°
180.000
с
3
Garcia, loan
0
40.000
Garcia, capital
0
153.000
Iglesias, capital
23.600
Kassabian, capital
0
10.520
Cash
°
224.000
D
4
Liabilities
Cash
0
100.000
C
188.000
E
5
Garcia, capital
0
0.500
Iglesias, capital
0
0.500
Kassabian, capital
10.000
Cash
38.000
F
B
Garcia, capital
10
Iglesias, capital
0
10
Kassabian, capital
°
10
Cash](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcd00f352-9421-4da6-9af1-2bdc29cf44bc%2F84f917a4-f2fc-485f-b114-c0b6d7ee97cb%2Fb3nlxoa_processed.png&w=3840&q=75)
Transcribed Image Text:Required Information
[The following information applies to the questions displayed below]
The partnership of Garcia, Iglesias, and Kassabian was formed several years ago as a local tax preparation firm. Two
partners have reached retirement age, and the partners have decided to terminate operations and liquidate the business.
Liquidation expenses of $50,000 are expected. The partnership balance sheet at the start of liquidation is as follows:
Cash
Accounts receivable
Office equipment (net)
Building (net)
Land
Total assets
Liabilities
Garcia, loan
$ 46,000
76,000
$186,000
46,000
66,000
Garcia, capital (25)
130,000
190,000
Iglesias, capital (25%)
46,000
180,000
$558,000
Kassabian, capital (se)
150,000
Total liabilities and capital
$558,000
The following transactions transpire in chronological order during the liquidation of the partnership:
1. Collected 90 percent of the accounts receivable and wrote the remainder off as uncollectible.
2. Sold the office equipment for $28,000, the building for $142.000, and the land for $184,000.
3. Distributed safe payments of cash.
4. Paid all liabilities in full.
5. Paid actual liquidation expenses of $38,000 only.
6. Made final cash distributions to the partners.
Required:
Prepare journal entries to record these liquidation transactions.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
No
Transaction
A
1
Cash
Garcia, capital
Iglesias, capital
Kassabian, capital
Accounts receivable
General Journal
Debit
Credit
.
68.400
°
1.000
°
1.000
0
3.800
0
76.000
B
2
Cash
354.000
Garcia, capital
0
20.500
Iglesias, capital
20.500
Kassabian, capital
0
41.000
Office equipment (net)
·
66.000
Building (net)
°
190.000
Land
°
180.000
с
3
Garcia, loan
0
40.000
Garcia, capital
0
153.000
Iglesias, capital
23.600
Kassabian, capital
0
10.520
Cash
°
224.000
D
4
Liabilities
Cash
0
100.000
C
188.000
E
5
Garcia, capital
0
0.500
Iglesias, capital
0
0.500
Kassabian, capital
10.000
Cash
38.000
F
B
Garcia, capital
10
Iglesias, capital
0
10
Kassabian, capital
°
10
Cash
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