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Q. 1

Alex and Bess have been in partnership for many years. The partners, who share profits and losses on a 60:40 basis, respectively, wish to retire and have agreed to liquidate the business. Liquidation expenses are estimated to be $6,500. At the date the partnership ceases operations, the balance sheet is as follows: Cash Noncash assets $ 53,000 120,000 Liabilities Alex, capital Boss, capital Total Habilities and capital $ 41,500 72,000 59,500 $ 173,000 Total assets $ 173,000 Part A: Prepare journal entries for the following transactions that occurred in chronological order: a. Distributed safe cash payments to the partners. b. Paid $24.900 of the partnership's liabilities. c. Sold noncash assets for $131,500. d. Distributed safe cash payments to the partners. e. Pald remaining partnership liabilities of $16,600 f. Paid $5.200 in liquidation expenses; no further expenses will be incurred. 9. Distributed remaining cash held by the business to the partners. Part B: Prepare a final statement of partnership liquidation. Complete this question by entering your answers in the tabs below. Required A Required B Prepare journal entries for the following transactions that occurred in chronological order: (Do not round Intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required in the first account field.) Required A Required B Prepare journal entries for the following transactions that occurred in chronological order: (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required in the first account field.) a. Distributed safe cash payments to the partners. b. Paid $24,900 of the partnership's liabilities. c. Sold noncash assets for $131,500. d. Distributed safe cash payments to the partners. e. Pald remaining partnership liabilities of $16,600. 1. Paid $5,200 in liquidation expenses; no further expenses will be incurred. g. Distributed remaining cash held by the business to the partners. K Show less View transaction list ces Journal entry worksheet 1 2 3 4 5 6 7 > Record the initial distribution of available cash based on safe capital balance. Note Enter debits before credits Transaction General Journal Debit Credit - Prepare journal entries for the following transactions that occurred in chronological order: (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) a. Distributed safe cash payments to the partners. b. Pald $24,900 of the partnership's liabilities c. Sold noncash assets for $131,500. d. Distributed safe cash payments to the partners. e. Pald remaining partnership liabilities of $16,600. f. Pald $5,200 in liquidation expenses; no further expenses will be incurred. g. Distributed remaining cash held by the business to the partners. Show less View transaction list Journal entry worksheet 1 2 3 4 5 6 7 > Record the payment of the partnership's liabilities. Note: Enter debits before credits Transaction General Journal Debit Credit b Prepare journal entries for the following transactions that occurred in chronological order: (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) a. Distributed safe cash payments to the partners. b. Paid $24,900 of the partnership's liabilities. c. Sold noncash assets for $131,500. d. Distributed safe cash payments to the partners. e. Paid remaining partnership liabilities of $16,600. f. Paid $5,200 in liquidation expenses; no further expenses will be incurred. g. Distributed remaining cash held by the business to the partners. Show less View transaction list Journal entry worksheet Record the entry to distribute safe cash payments to the partners. Note: Enter debits before credits Transaction General Journal Debit Credit d. n Prepare journal entries for the following transactions that occurred in chronological order: (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) a. Distributed safe cash payments to the partners. b. Paid $24,900 of the partnership's liabilities. c. Sold noncash assets for $131,500 d. Distributed safe cash payments to the partners. e. Paid remaining partnership liabilities of $16,600. f. Paid $5,200 in liquidation expenses; no further expenses will be incurred. g. Distributed remaining cash held by the business to the partners. Show less View transaction list Journal entry worksheet Prepare journal entries for the following transactions that occurred in chronological order: (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required in the first account field.) a. Distributed safe cash payments to the partners. b. Paid $24,900 of the partnership's liabilities. c. Sold noncash assets for $131,500. d. Distributed safe cash payments to the partners. e. Paid remaining partnership liabilities of $16,600. f. Paid $5,200 in liquidation expenses; no further expenses will be incurred. g. Distributed remaining cash held by the business to the partners. Show less View transaction list Journal entry worksheet 1 2 3 4 5 6 7 Record the entry to distribute remaining cash held by the business to the partners. Note: Enter debits before credits Transaction General Journal Debit Credit 9

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