Prepare journal entries to record liquidation transactions

Assignment Help Accounting Basics
Reference no: EM132217561

Question: Part A The partnership of Wingler, Norris, Rodgers, and Guthrie was formed several years ago as a local architectural firm. Several partners have recently undergone personal financial problems and have decided to terminate operations and liquidate the business. The following balance sheet is drawn up as a guideline for this process:

Cash $ 37,000

Liabilities $ 68,000

Accounts receivable 104,000

Rodgers, loan 57,000

Inventory 123,000

Wingler, capital (30%) 153,000

Land 96,000

Norris, capital (10%) 110,000

Building and equipment (net) 179,000

Rodgers, capital (20%) 85,000

Guthrie, capital (40%) 66,000

Total assets $ 539,000

Total liabilities and capital $ 539,000

When the liquidation commenced, liquidation expenses of $21,000 were anticipated as being necessary to dispose of all property. Prepare a predistribution plan for this partnership. Part B The following transactions transpire during the liquidation of the Wingler, Norris, Rodgers, and Guthrie partnership: Collected 85 percent of the total accounts receivable with the rest judged to be uncollectible. Sold the land, building, and equipment for $161,000. Made safe capital distributions. Learned that Guthrie, who has become personally insolvent, will make no further contributions. Paid all liabilities. Sold all inventory for $78,000. Made safe capital distributions again. Paid actual liquidation expenses of $12,000 only. Made final cash disbursements to the partners based on the assumption that all partners other than Guthrie are personally solvent. Prepare journal entries to record these liquidation transactions.

Reference no: EM132217561

Questions Cloud

Confirm the bond issue price : Bonds Payable: On January 1, 2016 Baker Corporation issued $800,000 of 20-year, 11% bonds for $739,815, yielding a market (yield) rate of 12%.
Does scott have a duty to ask moos brothers : Does Scott have a duty to ask Moos Brothers about additional income from the facility or a duty to request written copies of its Forms 1099? Explain?
How you will decide issues of materiality : Outline and describe how you will decide issues of materiality and how these shall/should be reported, analyzed, and acted upon by the firm being audited.
How does the pcaob define the term specialist : Access the PCAOB's proposed rule on the use of specialists? Provide examples of activities that require the use of specialists.
Prepare journal entries to record liquidation transactions : When the liquidation commenced, liquidation expenses of $21,000 were anticipated as being necessary to dispose of all property.
Calculate the full ip address of node 2050 in this network : Given that the network ID is 192.168.12.0 provide the physical network identity in CIDR notation.
What is the pension expense : What is the pension expense for 2018? What is the balance of Plan Assets and of the PBO at December 31, 2018?
Prepare document flowchart for materials requisition system : FreeFall, Inc manufactures parachutes and uses material requisition forms to control the release of raw materials into production. After reviewing a job order.
Consider the largest positive number that could be stored : The XYZ Computer Company made a commercially-unsuccessful computer which used 9-bit memory words. It used the 2's complement system.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd