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The Field, Brown & Snow partnership was begun with investments by the partners as follows: Field, $131,250; Brown, $165,000; and Snow, $153,750. The operations did not go well, and the partners eventually decided to liquidate the partnership, sharing all losses equally. On May 31, after all assets were converted to cash and all creditors were paid, only $45,000 in partnership cash remained.
Give the entries required on December 31 to record payroll. Give (a) the journal entry for the collection of rent on December 10 and (b) the adjusting journal entry on December 31. Show how any liabilities related to these items should be reported on..
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