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The Partners of Rand, Kaldor, & Zane have decided to liquidate thier firm on January 1st. The balance sheet shows the following: Assets Cash $24,000 Accounts Receivable $14,000 Allowance for Doubtful Accounts ($1,000) Merchandise Inventory $30,000 Equipment $22,000 Accumulated Amortization, Equipment ($8000) Total Assets: $81,000 Liabilities Notes Payable $14,000 Accounts Payable $24,000 Wages Payable $2,000 Owner's Equity Rand, Capital $25,000 Kaldor, Capital $12,800 Zane, Capital $3,200 Total Liabilities and Owner's Equity $81,000 The partners share income and losses 5:3:2 (Rand, Kaldor, Zane). During the period of liquidation, the following transactions occured: 1. A total of $48,000 was received from converting non-cash assets into cash.(Hint: total up all non-cash assets to determine gain or loss on disposal) 2. Liabilities were paid in full. 3. Cash was paid to the partners. Instructions: a) Record all journal entries to dissolve the partnership. (Hint: There are four: distribute assets, pay liabilities, distribute gain/loss and distribute cash.)

Q4 - Balance Sheet Before Liq After Liq \begin{tabular}{|l|r|r|} \hline Assets & & \\ \hline Cash & 24,000 & \\ \hline Accounts Receivable & 14,000 & \\ \hline Allowance for Doubtful Accounts & 1,000 & \\ \hline Merchandise Inventory & 30,000 & \\ \hline Equipment & 22,000 & \\ \hline Accumulated Amortization - Equipment & 8,000 & \\ \hline & 81,000 & 0 \\ \hline \end{tabular} Liabilities \& Equity Notes Payable Accounts Payable Wages Payable Rand, Capital Kaldor, Capital Zane, Capital

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