Answer to Question #103861 in Accounting for jenelle

Question

Theyearstofollowwerenotfavorabletothepartnership.AtthistimethecapitalbalancesofZevulunandBinyaminhadbeenreduced to $60,000 and $30,000, respectively. The partnership was left with $50,000 cash, $190,000 in noncash assets, and $150,000 in liabilities. The partners decided to liquidate the partnership. Noncash assets were all sold for cash, and all liabilities were paid off. Prepare a liquidation schedule and corresponding journal entries for each of the following independent assumptions:
a) The noncash assets were sold for $200,000; the profit sharing ratio was equal. (12 points)
b) The noncash assets were sold for $120,000; the profit sharing ratio was equal; Binyamin paid cash for any capital deficiency. (12 points)
c) Same information as (b) but Binyamin was insolvent (start from after payment of liabilities).

Answer 1

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