Alex and Bess have been in partnership for many years. The partners, who share profits...
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Alex and Bess have been in partnership for many years. The partners, who share profits and losses on a 60:40 basis, respectively. wish to retire and have agreed to liquidate the business Liquidation expenses are estimated to be $5,000. At the date the partnership ceases operations, the balance sheet is as follows: $ Cash Noncash assets 50,000 15e,eee Liabilities Alex, capital Bess, capital Total liabilities and capital $ 40, eee 9e, eee 70,000 $ 200,000 Total assets $ 200,000 Part A: Prepare journal entries for the following transactions: a. Distributed safe cash payments to the partners b. Paid $30,000 of the partnership's liabilities. c. Sold noncash assets for $160,000. d. Distributed safe cash payments to the partners. e. Pald remaining partnership liabilities of $10,000. 1. Paid $4,000 in liquidation expenses, no further expenses will be incurred g. Distributed remaining cash held by the business to the partners. Part B: Prepare a final statement of partnership liquidation
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