Glencoe AccountingChapter 28:
Financial Statements and Liquidation of a PartnershipHomework PracticePartnership Liquidation Entries Rand and Brown decide to liquidate their partnership. The partners divide net income/net loss equally. Account balances immediately prior to the liquidation process are as follows: Cash in Bank | $ 5,900 | Accounts Receivable | 10,000 | Merchandise Inventory | 50,000 | Equipment | 60,000 | Accumulated Depreciation-Equipment | 10,100 | Accounts Payable | 20,000 | Notes Payable | 6,800 | Rand, Capital | 42,500 | Brown, Capital | 46,500 |
Download the general journal form by clicking on Accounting Forms from the Student Center. Prepare entries to: - Sell the accounts receivable to a finance broker for $9,000.
- Sell the merchandise inventory for $53,000.
- Sell the equipment for $46,000.
- Pay the accounts payable and the note payable.
- Distribute the remaining cash to the partners.
|