Question:
After discontinuing the ordinary business operations and closing the accounts on May 7, the ledger of the partnership of Anna, Brian, and Cole indicated the following:
| Cash |
10,000 |
|
| Noncash Assets |
200,000 |
|
| Liabilities |
|
65,000 |
| Anna, Capital |
|
72,500 |
| Brian, Capital |
|
48,333 |
| Cole, Capital |
|
24,167 |
| |
210,000 |
210,000 |
The partners share net income and losses in the ratio of 5:3:2. Between May 7-30, the noncash assets were sold for $260,000, the liabilities were paid, and the remaining cash was distributed to the partners.
a. Prepare a statement of partnership liquidation. If an amount box does not require an entry, leave it blank or enter "0".