Do not give image format [The following information applies to the questions displayed below.]The partnership of Garcia, Iglesias, and Kassablan was formed several years ago as a local tax preparation firm. Twopartners have reached retirement age, and the partners have decided to terminate operations and liquidate the business.Liquidation expenses of $48,000 are expected. The partnership balance sheet at the start of liquidation is as follows:CashAccounts receivableOffice equipment (net)Building (net)LandTotal assets$ 44,00074,00064,000180,000170,000$ 532,000LiabilitiesGarcia, loanGarcia, capital (25%)4. Paid all liabilities in full.5. Pald actual liquidation expenses of $37,000 only.6. Made final cash distributions to the partners.Iglesias, capital (25%)Kassablan, capital (50%)Total liabilities and capitalThe following transactions transpire in chronological order during the liquidation of the partnership:1. Collected 90 percent of the accounts receivable and wrote the remainder off as uncollectible.2 Sold the office equipment for $27,000, the building for $134,000, and the land for $176,000.3. Distributed safe payments of cash.$ 184,00044,000120,00044,000140,000$ 532,000Required:Prepare journal entries to record these liquidation transactions.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Required:Prepare Journal entries to record these liquidation transactions.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.View transaction letJournal entry worksheetABTransaction1CNote: Enter debits before creditsRecord entryCollected 90 percent of the accounts receivable and wrote the remainder off asuncollectible.DE FGeneral JournalClear entryDebitCreditView general journalA

It is an agreement between two or more parties to conduct the business and share the profits and…

The partnership of Garcia, Iglesias, and Kassablan was formed several years ago as a local tax preparation firm. Two partners have reached retirement age, and the partners have decided to terminate operations and liquidate the business. Liquidation expenses of $48,000 are expected. The partnership balance sheet at the start of liquidation is as follows: Cash Accounts receivable Office equipment (net) Building (net) Land Total assets $ 44,000 74,000 64,000 180,000 170,000 $ 532,000 Liabilities Garcia, loan Garcia, capital (25%) Iglesias, capital (25%) Kassabian, capital (50%) Total liabilities and capital $ 184,000 44,000 120,000 44,000 140,000 $ 532,000

The partnership of Garcia, Iglesias, and Kassablan was formed several years ago as a local tax preparation firm. Two partners have reached retirement age, and the partners have decided to terminate operations and liquidate the business. Liquidation expenses of $48,000 are expected. The partnership balance sheet at the start of liquidation is as follows: Cash Accounts receivable Office equipment (net) Building (net) Land Total assets $ 44,000 74,000 64,000 180,000 170,000 $ 532,000 Liabilities Garcia, loan Garcia, capital (25%) Iglesias, capital (25%) Kassabian, capital (50%) Total liabilities and capital $ 184,000 44,000 120,000 44,000 140,000 $ 532,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The partnership of Butler, Osman, and Ward was formed several years ago as a local tax preparation firm. Two partners have reached retirement age, and the partners have decided to terminate operations and liquidate the business. Liquidation expenses of $47,000 are expected. The partnership balance sheet at the start of liquidation is as follows: Cash Accounts receivable Office equipment (net) Building (net) Land Total assets $ 43,000 73,000 63,000 175,000 165,000 $ 519,000 Liabilities $ 183,000 Butler, loan 43,000 Butler, capital (25%) 115,000 Osman, capital (25%) 43,000 Ward, capital (50%) 135,000 Total liabilities and capital $ 519,000 The following transactions transpire in chronological order during the liquidation of the partnership: 1. Collected 90 percent of the accounts receivable and wrote the remainder off as uncollectible. 2. Sold the office equipment for $26,500, the building for $130,000, and the land for $172,000. 3. Distributed safe payments of cash. 4. Paid all…
! Required information [The following information applies to the questions displayed below.] The partnership of Garcia, Iglesias, and Kassabian was formed several years ago as a local tax preparation firm. Two partners have reached retirement age, and the partners have decided to terminate operations and liquidate the business. Liquidation expenses of $44,000 are expected. The partnership balance sheet at the start of liquidation is as follows: Cash Accounts receivable Office equipment (net) Building (net) Land Total assets Liabilities Garcia, loan $ 180,000 40,000 100,000 40,000 120,000 $ 40,000 70,000 60,000 Garcia, capital (25%) 160,000 150,000 $ 480,000 Total liabilities and capital $ 480,000 Iglesias, capital (25%) Kassabian, capital (50%) Required: Prepare a predistribution plan for this partnership. Garcia, Loan and Capital Iglesias, Capital Kassabian, Capital Beginning balances $ 140,000 $ 40,000 $ 120,000 Assumed loss of Schedule 1 40,000 40,000 (80,000) Step one balances $…
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