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Question - Partnership Liquidation
The balance sheet of the Tri Brothers partnership just prior to liquidation appears below: Tri Brothers Balance Sheet december 31, 2017. Assets-Cash $140,000, Noncash assets $380,000. Liabilities and Owners Equity-Liabilities $240,000, Grayson, Capital 40,000, Lawson, Capital 160,000, Myer's Capital 80,000. Both ending with $520,000. Other info.1.The partners Grayson, Lawson, and Myers share profits and losses in the ratio of 6:3:1. 2. The noncash assets are sold for $280,000. 3. The liabilities are paid in full.4. The remaining assets are distributed to the partners. Assume that if any partner any a capital deficiency, he will not be able to pay the amount owed to the partnership. Prepare the five entries to record the liquidation of the Tri Brothers partnership.
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