Liquidate the partnership

Assignment Help Accounting Basics

Reference no: EM13818923

ABC is a partnership owned by Alders, Byron, and Calvin, who share profits and losses in the ratio of 1:3:4. The account balances of the partnership at June 30 follows:

ABC

Adjusted Trial Balance

June 30, 2014

Account Title

Cash $33,000DR

Non-Cash Assets $117,000DR

Notes Payable $32,000CR

Alders, Capital $22,000CR

Byron, Capital $50,000CR

Calvin, Capital $53,000CR

Alders, Withdrawals $9,000DR

Bryon, Withdrawals $27,000DR

Calvin, Withdrawals $49,000DR

Sales Revenue $164,000CR

Salaries Expense $74,000DR

Rent Expense $12,000DR

Total $321,000DR $321,000CR

Requirements:

1. Prepare the June 30 entries to close the revenue, expense, income summary, and withdrawal accounts.

2. Open each partner's capital T-accounts with the adjusted balance, post the closing entries to their accounts, and determine each partner's ending capital balance.

3. Prepare the June 30 entries to liquidate the partnership assuming the non-cash assets are sold for $120,000.

Reference no: EM13818923

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