Accounting IC Chapter 12 Exercise On April 30th, the PAL partnership liquidates. Prior to the liquidation, the partnersh

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Accounting Ic Chapter 12 Exercise On April 30th The Pal Partnership Liquidates Prior To The Liquidation The Partnersh 1 (51.89 KiB) Viewed 55 times

Accounting IC Chapter 12 Exercise On April 30th, the PAL partnership liquidates. Prior to the liquidation, the partnership's general ledger had the following account balances: Cash $89,000 $37,000 Non-Cash Assets 41,000 Peter, Capital Aria, Capital 24,000 Liabilities 68,000 Leon, Capital 1,000 PAL sold its Non-Cash Assets for $11,000. Peter, Aria, and Leon share profit/loss 7:1:2. Assume any partner with a deficient capital account balance is insolvent. Instructions Prepare associated journal entries, including descriptions, for the following: 1. Sale of the Non-Cash Assets 2. Allocation of the Gain/(Loss) Realized on the Sale of the Non-Cash Assets 3. Payment of Liabilities 4. Distribution of Cash to Partners (Hint: Two entries: may wish to look in the textbook)