50.1K

Verified Solution

Link Copied!

(SCROLL ALL THE WAY DOWN) please only answer if you actually know how to do this and please don't waste my question. please answer using what i have provided and make sure it is readable and understandable. please answer using charts and make it as neat as possible please. I need help and I need help that knows what they are actuallu doing. thank you for your time.

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 $19,460, $4,520, and $22,780, respectively. Cash and noncash assets total $4,740 and $57,380, respectively. Amounts owed to creditors total $15,360. 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 $35,700, the partner with the capital deficiency pays the deficiency to the partnership, and the liabilities are paid.

Instructions

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. Refer to the list of labels and amount descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers (balance deficiencies, payments, cash distributions, divisions of loss), use a minus sign. If there is no amount to be reported for items (a) - (d), the cell can be left blank. However, in the balance rows, a balance of zero MUST be indicated by entering "0".

2. Assume that the partner with the capital deficiency declares bankruptcy and is unable to pay the deficiency. Journalize the entries on Feb. 28 to (a) allocate the partners deficiency and (b) distribute the remaining cash. Refer to the chart of accounts for exact wording of account titles. chart of accounts

labels and amount descriptions

t of Partnership Liquidation of Accounts CHART OF ACCOUNTS Gerloff, Chu, and Jewett General Ledger ASSETS REVENUE 110 Cash 410 Revenues 111 Petty Cash 610 Interest Revenue 112 Accounts Receivable 113 Allowance for Doubtful Accounts EXPENSES 2014 Interest Receivable 510 Cost of Merchandise Sold art of Accounts 115 Notes Receivable 116 Inventory 117 Supplies 118 Office Supplies 520 Salary Expense 521 Advertising Expense 522 Depreciation Expense-Building 523 Depreciation Expense-Equipment 526 Repairs Expense 119 Prepaid Insurance 120 Land 529 Selling Expenses 531 Rent Expense 123 Building 124 Accumulated Depreciation-Building 125 Equipment 126 Accumulated Depreciation-Equipment 533 Insurance Expense 534 Supplies Expense 535 Office Supplies Expense 536 Credit Card Expense 129 Asset Revaluations 133 Patent 537 Cash Short and Over 538 Property Tax Expense LIABILITIES 539 Miscellaneous Expense ent of Partnership Liquidation art of Accounts LIABILITIES 539 Miscellaneous Expense 210 Accounts Payable 710 Interest Expense 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable EQUITY 310 William Gerlot, Capital 311 William Gerlof Drawing 312 Courtney Jewett, Capital 313 Courtney Jewett Drawing 314 Joshua Chu. Capital 315 Joshua Chu, Drawing Labels For Period February 3-28 For the Year Ended February 28 Amount Descriptions Balances after payment of liabilities Balances after realization Balances before realization Capital additions Cash distributed to partners Final balances Less partner withdrawals et income for the year Payment of liabilities Receipt of deficiency Sale of assets and division of loss t of Partnership Liquidation of Accounts CHART OF ACCOUNTS Gerloff, Chu, and Jewett General Ledger ASSETS REVENUE 110 Cash 410 Revenues 111 Petty Cash 610 Interest Revenue 112 Accounts Receivable 113 Allowance for Doubtful Accounts EXPENSES 2014 Interest Receivable 510 Cost of Merchandise Sold art of Accounts 115 Notes Receivable 116 Inventory 117 Supplies 118 Office Supplies 520 Salary Expense 521 Advertising Expense 522 Depreciation Expense-Building 523 Depreciation Expense-Equipment 526 Repairs Expense 119 Prepaid Insurance 120 Land 529 Selling Expenses 531 Rent Expense 123 Building 124 Accumulated Depreciation-Building 125 Equipment 126 Accumulated Depreciation-Equipment 533 Insurance Expense 534 Supplies Expense 535 Office Supplies Expense 536 Credit Card Expense 129 Asset Revaluations 133 Patent 537 Cash Short and Over 538 Property Tax Expense LIABILITIES 539 Miscellaneous Expense ent of Partnership Liquidation art of Accounts LIABILITIES 539 Miscellaneous Expense 210 Accounts Payable 710 Interest Expense 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable EQUITY 310 William Gerlot, Capital 311 William Gerlof Drawing 312 Courtney Jewett, Capital 313 Courtney Jewett Drawing 314 Joshua Chu. Capital 315 Joshua Chu, Drawing Labels For Period February 3-28 For the Year Ended February 28 Amount Descriptions Balances after payment of liabilities Balances after realization Balances before realization Capital additions Cash distributed to partners Final balances Less partner withdrawals et income for the year Payment of liabilities Receipt of deficiency Sale of assets and division of loss

Answer & Explanation Solved by verified expert

See Answer