The partners, who share profits and losses on a 60:40 basis, respectively, wish to retire...
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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 $6,000. At the date the partnership ceases operations, the balance sheet is as follows: Cash $ 64,000 Liabilities $ 47,000 Noncash assets 230,000 Alex, capital 138,000 Bess, capital 109,000 Total assets $ 294,000 Total liabilities and capital $ 294,000 Part A: Prepare journal entries for the following transactions: a.Distributed safe cash payments to the partners. b.Paid $28,200 of the partnerships liabilities. c.Sold noncash assets for $247,000. d.Distributed safe cash payments to the partners. e.Paid remaining partnership liabilities of $18,800. f.Paid $4,700 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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