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 8SPB
ENTRIES FOR DISSOLUTION OF
On August 10, after the business had been in operation for several years, Patricia Weber passed away. Mr. Weber wished to sell his wife’s interest for $30,000. After the books were closed, the partners’ capital accounts had credit balances as follows:
REQUIRED
1. Prepare the general
2. Assume instead that Mr. Weber is paid $60,000 for the book value of Patricia Weber’s capital account. Prepare the necessary journal entry.
3. Assume instead that Julie Stickel (with the consent of the remaining partners) purchased Weber’s interest for $70,000 and gave Mr. Weber a personal check for that amount. Prepare the general journal entry for the partnership only.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Apel, Ere and Inie have been in partnership since school days, sharing profits and losses in the ratio 3:2:1. On 31/12/2020, they have decided to dissolve their partnership. Below is their last statement of financial position prior to dissolution of the partnership.
Statement of financial position as at 31/12/2020.
Non-current asset.
Premises 150000
Machinery 36000
Motor vehicles 14000
200,000
CURRENT ASSETS
Inventory 11000
Trade receivable 7600
Bank 1200 19800
Total Assets 219800
Liabilities & Capitals
Trade payables 6400
Capital…
H.
Marie, Len and Ann decided to dissolve their partnership on august 31, 2019. Profits and and losses
are shared 4:3:3, respectively and their capital balances as of January 1, 2019 were as follows:
Marie - P 75,000
Len - P 90,000
Ann - P 30,000
The operations of the partnership for the period January 1, 2019 to August 31, 2019 resulted to a
profit of P 66,000. As of August 31, 2019, cash balance is P 60,000 and the liabilities are P 135,000.
For Marie to receive P 60,000 in final settlement of her equity, how much should the non-cash assets
be sold?
David Wallace, Olena Dunn, and Danny Lin were partners in a commercial architect firm and showed the following account balances as
of December 31, 2023:
Account balances December 31, 2023
Due to several unprofitable periods, the partners decided to liquidate the partnership. The equipment was sold for $59,000 on
January 1, 2024. The partners share any profit (loss) in the ratio of 2:1:1 for Wallace, Dunn, and Lin, respectively.
David
Olena
Accum.
Deprec. Accounts
Danny
Notes Wallace, Dunn,
Lin,
Equipment Equipment Payable Payable Capital Capital Capital
$19,300 $161,000 $92,000 $7,300 $15,000 $34,000 $17,000 $15,000
Cash
Required:
1. Complete the schedule. (Negative answers should be indicated by a minus sign.)
Account balances December 31, 2023
Sale of equipment
Balance
Payment of liabilities
Balance
Cash
Equipment
Accum.
Deprec.
Equipment
$ 19,300 $ 161,000 $
59,000
161,000
322,000 $
$ 78,300 $
$ 78,300 $
322,000 $
Accounts
Payable
92,000 $
92,000
184,000 $
184,000 $
Notes
Payable…
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
- Admission of a New Partner: David Breck has a capital balance of $20,000 and he sells one half of his partnership interest to Cris Davis for $18,000 on January 4th, 2003. Breck is selling a $10,000 recorded interest in the partnership. Write the journal entry for this transaction. Admission of a new partner : David Breck decides that he would like to remain in the business, and instead Cris Davis invests $18,000 cash in the business. Record the journal entry for this transaction.arrow_forwardDerek Howat, Gina Rosales, and Amin Karem formed a partnership 10 years ago called HRK LLP, which reports under ASPE. Derek, Gina, and Amin are working on the 2020 year-end financial reporting for the partnership, and Derek announced that he would like to retire as of the year end. The partnership agreement states that upon retirement, a partner will receive $225,000 in cash for their one-third ownership interest. No revaluations to partnership assets are required before Derek’s withdrawal. Before recording the year-end adjustments for salary, interest, and income, the individual capital accounts of the partners at December 31, 2020, were as follows: Capital, Derek $155,000 Capital, Gina $215,000 Capital, Amin $130,000 HRK LLP had income for 2020 of $86,000 and according to the partnership agreement, profits should be split 2:3:1 between Derek, Gina, and Amin. A salary of $30,000 was paid to Derek during 2020, and interest is accrued on the opening capital…arrow_forwardPike, Quinn, and Reed are forming a partnership On March 31 of the current year, the capital accounts of the three existing partners and theirshares of profits and losses are as follows: Pike, Quinn, and Reed are considering adding Shipp as a new partner on April 31 Shipp in$200,000 in the partnership, acquiring a one-fourth interest in the business. Journalizeadmission of Shipp as a partner on March 31arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,
Financial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
Financial Accounting
Accounting
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
What is liquidity?; Author: The Finance Storyteller;https://www.youtube.com/watch?v=XtjS7CfUSsA;License: Standard Youtube License