Journalize the liquidation of the partnership on august

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Question - The three partners of Crane Contractors agree to liquidate their partnership on August 8, 2021. At that point, the accounting records show the following balances:

Cash

$145,200

H. Brumby, capital

$240,600

Merchandise inventory

389,100

R. Criolio, capital

175,200

Notes payable

95,500

A. Paso, capital

23,000

The three partners share profit and loss equally.

Required - Journalize the liquidation of the partnership on August 8 under each of the following independent assumptions:

1. The merchandise inventory is sold for $418,491 cash, the note payable is paid, and the remaining cash is paid to the partners.

2. The merchandise inventory is sold for $297,000 cash and the note payable is paid. Assume that any partners with a debit capital balance pay the amount owed to the partnership.

Reference no: EM133101476

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