College Accounting, Chapters 1-27
23rd Edition
ISBN: 9781337794756
Author: HEINTZ, James A.
Publisher: Cengage Learning,
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 19, Problem 10SPA
STATEMENT OF PARTNER SHIP LIQUIDATION WITH LOSS After several years of operations, the
REQUIRED
1. Prepare a statement of partnership liquidation for the period July 1–20, 20--, showing the following:
(a) The sale of noncash assets on July 1
(b) The allocation of any gain or loss to the partners on July 1
(c) The payment of the liabilities on July 15
(d) The distribution of cash to the partners on July 20
2. Journalize these four transactions in a general journal.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
On June 30, 2021 – Gold, Titanium and Silver have decided to liquidate their partnership. The shared profits of the partners are in the ratio of 2:2:1, respectively.
The partnership's post-closing trial balance is given in the picture.
Required:
1.Prepare the liquidation journal entries.
2. Prepare the statement of liquidation.
Immediately prior to the process of liquidation, partners M, N, and O have capital balances of $70,000, $20,000, and $30,000 respectively. There is a cash balance of $10,000, noncash assets total $160,000, and liabilities total $50,000. The partners share net income and losses in the ratio of 2:2:1.
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.
(a)
Sold the noncash assets for $80,000 in cash.
(b)
Divided the loss on realization.
(c)
Paid the liabilities.
(d)
Received cash from the partner with the deficiency.
(e)
Distributed the cash to the partners.
(for each Journal Entry, omit the 4th journalizing step of providing a brief explanation)
JOURNAL
Date Post. DR CR
(a)…
The partnership of Donald, Healey & Jaguar has experienced operating losses. The partners—who have shared profits and losses in the ratio of Donald, 10%; Healey, 30%; and Jaguar, 60%—are liquidating the business. They ask you to analyze the effects of liquidation and present the following partnership balance sheet at December 31, end of the current year:
Requirements
1. Prepare a summary of liquidation transactions (as illustrated in Exhibit 12-5). The noncash assets are sold for $192,000.
2. Journalize the liquidation transactions.
Chapter 19 Solutions
College Accounting, Chapters 1-27
Ch. 19 - Prob. 1TFCh. 19 - Prob. 2TFCh. 19 - Prob. 3TFCh. 19 - Prob. 4TFCh. 19 - Prob. 5TFCh. 19 - Prob. 1MCCh. 19 - Prob. 2MCCh. 19 - Prob. 3MCCh. 19 - Prob. 4MCCh. 19 - Prob. 5MC
Ch. 19 - Prob. 1CECh. 19 - Prob. 2CECh. 19 - Prob. 3CECh. 19 - Prob. 4CECh. 19 - Prob. 5CECh. 19 - Prob. 1RQCh. 19 - Prob. 2RQCh. 19 - Prob. 3RQCh. 19 - Prob. 4RQCh. 19 - Prob. 5RQCh. 19 - Prob. 6RQCh. 19 - Prob. 7RQCh. 19 - Prob. 8RQCh. 19 - Prob. 9RQCh. 19 - Prob. 1SEACh. 19 - Prob. 2SEACh. 19 - Prob. 3SEACh. 19 - Prob. 4SEACh. 19 - ENTRIES: PARTNERSHIP LIQUIDATION On liquidation of...Ch. 19 - Prob. 6SPACh. 19 - Prob. 7SPACh. 19 - Prob. 8SPACh. 19 - Prob. 9SPACh. 19 - STATEMENT OF PARTNER SHIP LIQUIDATION WITH LOSS...Ch. 19 - Prob. 1SEBCh. 19 - Prob. 2SEBCh. 19 - Prob. 3SEBCh. 19 - Prob. 4SEBCh. 19 - Prob. 5SEBCh. 19 - Prob. 6SPBCh. 19 - Prob. 7SPBCh. 19 - ENTRIES FOR DISSOLUTION OF PARTNERSHIP Cummings...Ch. 19 - Prob. 9SPBCh. 19 - STATEMENT OF PARTNER SHIP LIQUIDATION WITH LOSS...Ch. 19 - Prob. 1MYWCh. 19 - Prob. 1ECCh. 19 - Prob. 1MPCh. 19 - Prob. 1CPCh. 19 - Prob. 1COP
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- STATEMENT OF PARTNER SHIP LIQUIDATION WITH LOSS After several years of operations, the partnership of Delco, Smith, and Walker is to be liquidated. After making closing entries on March 31, 20--, the following accounts remain Open. The noncash assets are sold for 165,000. Profits and losses are shared equally. REQUIRED 1. Prepare a statement of partnership liquidation for the period April 115, 20--, showing the following: (a) The sale of noncash assets on April 1 (b) The allocation of any gain or loss to the partners on April 1 (c) The payment of the liabilities on April 12 (d) The distribution of cash to the partners on April 15 2. Journalize these four transactions in a general journal.arrow_forwardENTRIES: PARTNERSHIP LIQUIDATION On liquidation of the partnership of J. Hui and K. Cline, as of November 1, 20--, inventory with a book value of 180,000 is sold for 230,000. Given that Hui and Cline share profits and losses equally, prepare the entries for the sale and the allocation of gain.arrow_forwardPrior to proceeding with the liquidation, the partnership should ________. A. prepare adjusting entries without closing B. complete the accounting cycle for final operational period C. prepare only closing entries D. complete financial statements onlyarrow_forward
- On December 31, 2018, the Statement of Financial Position of JKL Partnership with profit or loss ratio of 4:1:5 is presented below: On January 1, 2019, JKL partnership decided to liquidate. During their first month of liquidation, noncash asset with book value of P1,500,000 has been sold at a loss of P500,000. Liquidation expense amounting to P100,000 has been incurred and paid for the month of January while P150,000 is anticipated in the coming period. Liability to creditors has been paid in the amount of P750,000. What is the amount of cash distributed to K on the first month of liquidation?a. 175,000b. 250,000c. 162,500d. Nonearrow_forwardOn December 1, 2021 – Apple, Banana, and Lemon decided to finally liquidate their partnership. (Statement of financial position/Balance sheet is given in the picture) Required: 1. Prepare the liquidation journal entries. 2. Prepare the statement of liquidation.arrow_forwardStatement of Partnership Liquidation Instructions Chart of Accounts Labels and Amount Descriptions Statement of Partnership Liquidation Journal Instructions After the accounts are closed on February 3, prior to liquidating the partnership, the capital accounts of William Gerloff, Joshua Chu, and Courtney Jewett are $19,180, $4,020, and $22,140, respectively. Cash and noncash assets total $5,600 and $54,240, respectively. Amounts owed to creditors total $14,500. The partners share income and losses in the ratio of 2:1:1. Between February 3 and February 28, the noncash assets are sold for $34,560, the partner with the capital deficiency pays the deficiency to the partnership, and the liabilities are paid. Required: 1. Prepare a statement of partnership liquidation, indicating (a) the sale of assets and division of loss, (b) the payment of liabilities, (c) the receipt of the deficiency (from the appropriate partner), and (d) the distribution of cash. Be sure to complete the statement…arrow_forward
- Given information for question below: MAQHUZE WELDERS had the following balances when they commenced a simultenous liquidation of the partnership: 432 000 Welding equipment (cost).. Welding equipment (accumulated depreciation).. Trade receivables.. 145 800 70 200 Trade payables.. 32 400 The following transactions took place as part of the liquidation: 1. Welding equipment were sold for.. 2. Debtors settled their accounts in full 3. On settlement, the creditors granted a settlement discount of... 3. Liquidation costs amounted to... 216000 1700 27000 . *... QUESTION 1 Which one of the following alternatives represents the correct net profit (or loss) made on the simultaneous liquidation? A. 68 500 B. 74 500 C. 89 400 D. 76 200arrow_forwardImmediately prior to the process of liquidation, partners Micco, Niccum, and Orwell have capital balances of $70,000, $20,000, and $30,000, respectively. There is a cash balance of $10,000, noncash assets total $160,000, and liabilities total $50,000. The partners share net income and losses in the ratio of 2:2:1. Journalize the entries for the following liquidation using Noncash Assets as the account title for the noncash assets and Liabilities as the account title for all creditors' claims. Sold the noncash assets for $80,000 in cash. Divided the loss on realization. Paid the liabilities. Received cash from the partner with the deficiency. Distributed the cash to the partners. If an amount box does not require an entry, leave it blank.arrow_forwardOn December 31, 2019, the balance sheet for the XYZ Partnership follows: The percentages shown are for the residual profit and loss sharing ratios. The partners dissolved the partnership on January 1, 2020 and began the liquidation process. During January the following events occurred: Receivables of P7,500 were collected. All inventory was sold for P10,000. All available cash was distributed on January 31, 2020, except for P5,000 that was set aside for contingent expenses. How much cash would Xander receive from the cash that is available for distribution on January 31?arrow_forward
- What will i do for the liquidation expense stated in the problem related to parnership liquidation installment - cash priority program? Problem: On January 1, 2022, partners Kho, Lagman and Magno decided to liquidate their partnership. Prior to the liquidation, the partnersip had cash of P12,000, non-cash assets of P146,000, liabilities to outsiders of P36,000 and a note payable to Partner Magno of P14,000. The capital balances of the partners were: Kho - P36,000; Lagman-P54,000; Magno-P18,000. The partners share profits and losses in the ratio of 3:3:4,respectively.During January 2022, the partnership received cash of P30,000 from the sale of assets with a book value of P38,000 and paid P3,600 of liquidation expenses. During February, the partnership realized P44,000-from the sale of assets with a book value of P35,000 and paid liquidation expenses of P8,400. During March, the remaining assets were sold for P36,000. The partners agreed to distribute cash at the end of each…arrow_forwardA, B, and D Statement of Partnership Liquidation For the Day Ending January 1, 2022 Other assets Accounts payable Cash Partners' capital A B D Opening balance Allocation of gain (loss) Amount Ratio A B Darrow_forwardWithdrawal of a Partner Gregorio is retiring from the partnership of Guerra, Guillermo, and Gregorio. The profit and loss ratio is 2:2:1, respectively. After the accountant has posted the revaluation and closing entries, the credit balances in the Capital accounts are: Guerra, P530,000; Guillermo, P430,000; and Gregorio, P210,000. Required: Journalize the journal entries to record the retirement of Gregorio under each of the following unrelated assumptions: Gregorio retires, talking P210,000 of partnership cash for her equity. Gregorio retires, talking P270,000 of partnership cash for her equity.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,
Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
What is liquidity?; Author: The Finance Storyteller;https://www.youtube.com/watch?v=XtjS7CfUSsA;License: Standard Youtube License