March April and May have been in partnership for a

March, April, and May have been in partnership for a number of years. The partners allocate all
profits and losses on a 2:3:1 basis, respectively. Recently, each partner has become personally
insolvent and, thus, the partners have decided to liquidate the business in hope of remedying
their personal financial problems. As of September 1, the partnership’s balance sheet is as
follows:Prepare journal entries for the following transactions:a. Sold all inventory for $56,000
cash.b. Paid $7,500 in liquidation expenses.c. Paid $40,000 of the partnership’s liabilities.d.
Collected $45,000 of the accounts receivable.e. Distributed safe cash balances; the partners
anticipate no further liquidation expenses.f. Sold remaining accounts receivable for 30 percent
of face value.g. Sold land, building, and equipment for $17,000.h. Paid all remaining liabilities of
the partnership.i. Distributed cash held by the business to thepartners. View Solution: March
April and May have been in partnership for a
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