Immediately prior to the process of liquidation, partners Micco,Niccum, and Orwell have capital balances of $70,000, $20,000, and$30,000 respectively. There is a cash balance of $10,000,noncash assets total $160,000, and liabilities total $50,000. The partners share net income and losses in the ratio of 2:2:1.
Journalize the entries to record the liquidation outlined below,using Assets as the account title for the non cash assets and Liabilities as the account title for all creditors' claims.
| (a) |
Sold the noncash assets for $80,000 in cash. |
| (b) |
Divided the loss on realization. |
| (c) |
Paid the liabilities. |
| (d) |
Received cash from the partner with thedeficiency. |
| (e) |
Distributed the cash to the partners. |