The partners in Crawford Company decide to liquidate the firm when the balance sheet shows...
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Accounting
The partners in Crawford Company decide to liquidate the firm when the balance sheet shows the following.
Crawford Company
Balance Sheet
May 31, 2020 Assets Liabilities and Owners' Equity Cash $27,500 Notes payable $13,500 Accounts receivable 25,000 Accounts payable 27,000 Allowance for doubtful accounts (1,000) Salaries and wages payable 4,000 Inventory 34,500 A. Jamison, capital 30,000 Equipment 21,000 S. Moyer, capital 21,000 Accumulated depreciationequipment (5,500) P. Roper, capital 6,000 $101,500 $101,500
The partners share income and loss 5:3:2. During the process of liquidation, the following transactions were completed in the following sequence.
1. A total of $51,000 was received from converting noncash assets into cash. 2. Gain or loss on realization was allocated to partners. 3. Liabilities were paid in full. 4. Cash was distributed to the partners
Instructions
a. Prepare a schedule of liquidation for the partnership
b. Prepare the entries to record the transactions.
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