18 Aug Question: The Partnership Of Frick, Wilson, And Clarke Has Elected To Cease All Operations And Liquidate Its Business Property. A Balance Sheet Drawn Up At This Time Shows The Following Account Balances: Cash $ 66,000 Liabilities $ 46,000 Noncash Assets 231,000 Frick, Capital (60%) 135,000 Wilson, Capital (20%) 37,000 Clarke, Capital (20%) 79,000 Total Assets …
The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its business property. A balance sheet drawn up at this time shows the following account balances:
| Cash | $ | 66,000 | Liabilities | $ | 46,000 | |
| Noncash assets | 231,000 | Frick, capital (60%) | 135,000 | |||
| Wilson, capital (20%) | 37,000 | |||||
| Clarke, capital (20%) | 79,000 | |||||
| Total assets | $ | 297,000 | Total liabilities and capital | $ | 297,000 | |
Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation.
- 1 Record the entry for initial cash payments made to partners in accordance with predistribution plan.
- 2 Record the allocation of losses to partners on sale of noncash assets.
- 3 Record the extinguishment of all partnership liabilities.
- 4 Record the entry for cash payments made to partners in accordance with predistribution plan.
- 5 Record the allocation of losses to partners on sale of remaining noncash assets.
- 6 Record the payment of liquidation expenses.
- 7 Record the entry for final cash payments made to partners based on ending capital balances.
***Please number the journal entries, thanks!
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