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Partnership Liquidation, Indicating (a) The Sale Of Assets And Division ...

Question: 1. Prepare A Statement Of Partnership Liquidation, In…

1. Prepare a statement of partnership liquidation, indicating (a) the sale of assets and division of
loss, (b) the payment of liabilities, (c) the receipt of the de ciency (from the appropriate partner),
and (d) the distribution of cash.

Enter any balance de ciencies as negative numbers using a minus sign. If an amount is zero or a
blank, enter in 0.

Cash+ Noncash Assets =Liabilities +Harken, Capital +Sedlacek,Capital +Eldridge,Capital

$7,800 $61,400 $8,000 $31,000 $5,700 $24,500
Balances before realization
Sale of assets and division of loss
Balances after realization
Payment of liabilities
Balances after payment of liabilities
Receipt of de ciency
Balances
Cash distributed to partners
Final balances

2. Assume the partner with the capital de ciency declares bankruptcy and is unable to pay the
de ciency.

a. Journalize the entries to allocate the partner's de ciency. If an amount box does not require an
entry, leave it blank.

b. Journalize the entries to distribute the remaining cash. If an amount box does not require an
entry, leave it blank.
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Best Answer

I think you have missing information about sale of non-cash assets. To solve this, I assume it to be
$32,600and Income sharing ratiothat has been assumed 25%(Harken), 25%(Sedlacek) and 50%(Eldri
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