March, April, and May have been in partnership for a number of years. The partners allocate all profits and losses on a

[answerhappygod]

March April And May Have Been In Partnership For A Number Of Years The Partners Allocate All Profits And Losses On A 1 (21 KiB) Viewed 25 times

March, April, and May have been in partnership for a number of years. The partners allocate all profits and losses on a 4:2:2 basis, respectively. Recently, each partner has become personally insolvent and, thus, the partners have decided to liquidate the business in hopes of remedying their personal financial problems. As of September 1, the partnership's balance sheet is as follows Cash $ 100,000 Accounts receivable $ 29,000 Liabilities 120,000 March, capital 110,000 April, capital 62,000 Inventory 93,000 68,000 May, capital 64,000 Land, building, and equipment (net) Total assets $ 327,000 $ 327,000 Total liabilities and capital Prepare journal entries for the following transactions: 1.Sold all inventory for $74,000 cash. 2.Paid $12,900 in liquidation expenses. 3.Paid $58,000 of the partnership's liabilities. 4.Collected $69,000 of the accounts receivable. 5.Distributed safe payments of cash; the partners anticipate no further liquidation expenses 6.Sold remaining accounts receivable for 20 percent of face value. 7.Sold land, building, and equipment for $35,000. 8.Paid all remaining liabilities of the partnership. 9.Distributed cash held by the business to the partners.