Question - The MFP Partnership is to be liquidated when the ledger shows the following:
Cash$50,000
Noncash Assets200,000
Liabilities50,000
Mossimo, Capital75,000
Fandango, Capital100,000
Plank, Capital25,000
Mossimo, Fandango, and Plank's income ratios are 6:3:1, respectively.
Prepare separate entries to record the liquidation of the partnership assuming that the noncash assets are sold for $140,000 in cash.