skip to Main Content

The smarter way
to do assignments.

Please note that this is just a preview of a school assignment posted on our website by one of our clients. If you need assistance with this question too, please click on the Order button at the bottom of the page to get started.

After the accounts
are closed on July 3, 2012, prior to liquidating the partnership, the capital
accounts of Rebecca Adams, Austin Cooper, and Ricardo Ruiz are $31,500, $5,700,
and $23,700, respectively. Cash and noncash assets total $7,200 and $61,300, respectively.
Amounts owed to creditors total $7,600. The partners share income and losses in
the ratio of 1:1:2. Between July 3 and July 29, the noncash assets are sold for
$32,500, the partner with the capital deficiency pays his or her deficiency to
the partnership, and the liabilities are paid.

1. Prepare a statement of partnership
liquidation, indicating
(a) the sale of assets and division of loss,
(b) the payment of liabilities,
(c) the receipt of the deficiency (from the
appropriate partner), and
(d) the distribution of cash.

Enter any subtractions (balance deficiencies,
payments, cash distributions, divisions of loss) as negative numbers using a
minus sign. If there is no amount or an amount is zero, enter “0”.

2. Assume the partner with the capital
deficiency declares bankruptcy and is unable to pay the deficiency.

a. Journalize the entry to allocate the
partner’s deficiency. If an amount box does not require an entry, leave it
blank.
b. Journalize the entry to distribute the
remaining cash. If an amount box does not require an entry, leave it blank.After the accounts
are closed on July 3, 2012, prior to liquidating the partnership, the capital
accounts of Rebecca Adams, Austin Cooper, and Ricardo Ruiz are $31,500, $5,700,
and $23,700, respectively. Cash and noncash assets total $7,200 and $61,300, respectively.
Amounts owed to creditors total $7,600. The partners share income and losses in
the ratio of 1:1:2. Between July 3 and July 29, the noncash assets are sold for
$32,500, the partner with the capital deficiency pays his or her deficiency to
the partnership, and the liabilities are paid.

1. Prepare a statement of partnership
liquidation, indicating
(a) the sale of assets and division of loss,
(b) the payment of liabilities,
(c) the receipt of the deficiency (from the
appropriate partner), and
(d) the distribution of cash.

Enter any subtractions (balance deficiencies,
payments, cash distributions, divisions of loss) as negative numbers using a
minus sign. If there is no amount or an amount is zero, enter “0”.

2. Assume the partner with the capital
deficiency declares bankruptcy and is unable to pay the deficiency.

a. Journalize the entry to allocate the
partner’s deficiency. If an amount box does not require an entry, leave it
blank.
b. Journalize the entry to distribute the
remaining cash. If an amount box does not require an entry, leave it blank.

GET HELP WITH THIS ASSIGNMENT TODAY

Clicking on this button will take you to our custom assignment page. Here you can fill out all the additional details for this particular paper (grading rubric, academic style, number of sources etc), after which your paper will get assigned to a course-specific writer. If you have any issues/concerns, please don't hesitate to contact our live support team or email us right away.

How It Works        |        About Us       |       Contact Us

© 2018 | Intelli Essays Homework Service®