Solution-Make a final statement of partnership liquidation

Make a final statement of partnership liquidation

Assignment Help Financial Accounting

Reference no: EM132986312

Alex and Bess have been in partnership for many years. The partners, who share profits and losses on a 70:30 basis, respectively, wish to retire and have agreed to liquidate the business. Liquidation expenses are estimated to be $9,000.

At the date the partnership ceases operations, the balance sheet is as follows:

Cash $70,000

Liabilities $50,000

Noncash assets 290,000

Alex, capital 203,000

Bess, capital 107,000

Total assets $360,000

Total liabilities and capital $360,000

Problem 1: Prepare journal entries for the following transactions that occurred in chronological order:

Distributed safe cash payments to the partners.
Paid $30,000 of the partnership's liabilities.
Sold noncash assets for $310,000.
Distributed safe cash payments to the partners.
Paid remaining partnership liabilities of $20,000.
Paid $7,100 in liquidation expenses; no further expenses will be incurred.
Distributed remaining cash held by the business to the partners.

Problem 2: Prepare a final statement of partnership liquidation.

Reference no: EM132986312

Questions Cloud

What should be the price of the stock : The annual risk-free interest rate is 4%, compounded semi-annually (2% every six months). What should be the price of the stock in 6 months

Prepare a single-step income statement for the year ended : Tamarisk Corporation had net sales of $2,407,700 and interest revenue of $40,700 during 2020. Prepare a single-step income statement for the year ended

Calculate hillary npv : You have to spend $80 million immediately for equipment and the rights to produce the figure. If the discount rate is 10 percent, calculate Hillary's NPV

What is the total budgeted cost of goods manufactured : Meridian had an inventory of 210 units of Prime and 110 units of Luxuria at the end of 2019. What is the total budgeted cost of goods manufactured

Make a final statement of partnership liquidation : Prepare journal entries for the Paid $7,100 in liquidation expenses; no further expenses will be incurred transactions that occurred in chronological order

Find how much can nelson short-term debt increase : Its initial inventory level is $385,000, How much can Nelson's short-term debt (notes payable) increase without pushing its current ratio below 1.8?

How does the united states tax each category of income : What are the two categories of income that can be taxed by the United States when earned by a nonresident? How does the United States tax each category

What is the company cost of equity capital for david ortiz : The yield to maturity on the company. Ortiz's CFO has calculated the company's WACC as 8.4%. What is the company's cost of equity capital?

Evaluate what is the project mirr : Find What is the project's MIRR? A project has initial cost of $65,000, expected net cash inflows of $14,000 per year for 9 years, and a cost of capital of 13%.

User Account

All Pages

Make a final statement of partnership liquidation

Reference no: EM132986312

Reference no: EM132986312

Questions Cloud

Reviews

Write a Review

Financial Accounting Questions & Answers

Financial statement analysis and preparation

Shareholder of a company

Financial and accounting principles

Prepare a statement of cash flow using the direct method

Financial accounting assignment

Prepare general journal entries for goela

Principles of financial accounting

Prepare general journal entries to record the transactions

Global reporting initiative

Explain the iasb conceptual frameworks

Determine the company''s financial statements

Computation of free cash flow

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT