Journalize the sale of the assets

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Accounting for the liquidation of a partnership

The partnership of Driscoll, Charles, and Gavin is liquidating. Business assets, liabilities, and partners' capital balances prior to liquidation follow. The partners share profits and losses as follows: Driscoll, 20%; Charles, 30%; and Gavin, 50%.

DRISCOLL, CHARLES, & GAVIN

Cash

Noncash assets

Liabilities

Driscoll capital

Charles capital

Gavin capital

$13,000

$130,000

$80,000

$18,000

$33,000

$12,000

Requirement

1. Journalize the sale of the assets for $165,000, the payment of the liabilities, and the payment of the partners' final capital balances.

Reference no: EM13527481

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