Problem #2 (44 points) The partners in Salmon Company decide to liquidate the firm when...
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Accounting
Problem #2 (44 points) The partners in Salmon Company decide to liquidate the firm when the balance sheet shows the following SALMON COMPANY Balance Sheet April 30, 2017 Cash $28,000, Notes payable $16.000, Accounts recewable 19,000, Accounts payable 24,000, Allowance for doubtful accounts (1,000) Salaries and wages 2,000, Inventory 28,000, Equipment 17,000, Accumulated depreciation-equipment (10,000) Melton capital 23,000, Peters, capital 11,200, Abbott, capital 4,800. The partners share income and loss 5:2:3. A total of $33,000 was received from converting noncash assets into cash Instructions accounts. (a) Prepare the entries to record the 4 steps of the liquidation. (b) Post to the cash and capital (b) If a partner ends up with a deficiency assume the partner will not invest additional cash. Note: Each step is worth 11 points
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