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The partners in Sandhill Company decide to liquidate the firm when the balance sheet shows the...

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Accounting

The partners in Sandhill Company decide to liquidate the firmwhen the balance sheet shows the following.

Sandhill Company
Balance Sheet
May 31, 2020

Assets

Liabilities and Owners’ Equity

Cash

$29,100

Notes payable

$13,300

Accounts receivable

25,500

Accounts payable

26,700

Allowance for doubtfulaccounts

(1,500

)Salaries and wagespayable

4,000

Inventory

35,000

A. Jamison, capital

33,500

Equipment

21,400

S. Moyer, capital

24,000

Accumulateddepreciation—equipment

(5,300

)P. Roper, capital

2,700

$104,200

$104,200


The partners share income and loss 5:3:2. During the process ofliquidation, the following transactions were completed in thefollowing sequence.

1.A total of $54,400 wasreceived from converting noncash assets into cash.
2.Gain or loss on realizationwas allocated to partners.
3.Liabilities were paid infull.
4.P. Roper paid his capitaldeficiency.
5.Cash was paid to the partnerswith credit balances.

Prepare the entries to record the transactions.

Post to the cash and capital account

Assume that Roper is unable to pay the capital deficiency.(Credit account titles are automatically indented whenamount is entered. Do not indent manually.)
(1)Prepare the entry to allocate Roper’s debit balance to Jamisonand Moyer.
(2)Prepare the entry to record the final distribution ofcash.

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