Journalize the entries to record the liquidation

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Question - Immediately prior to the process of liquidation, partners Paco, Peca, and Pito have capital balances of $80,000, $30,000, and $40,000 respectively. There is a cash balance of $10,000, noncash assets total $190,000, and liabilities total $50,000. The partners share net income and losses in the ratio of 50%, 35%, and 15% respectively.

Journalize the entries to record the liquidation outlined below, using Assets as the account title for the noncash assets and Liabilities as the account title for all creditors; claims.

1. Sold the noncash assets for $90,000 in cash.

2. Divided the loss on realization.

3. Paid the liabilities.

4. Received cash from the partner with the deficiency.

5. Distributed the cash to the partners.

Reference no: EM132842774

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