(SOLVED) Rob Davis Stewart Vintu and Vern Wilson are liquidating their


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$19

Rob Davis, Stewart Vintu, and Vern Wilson are liquidating their partnership. Before selling the assets and paying the liabilities, the capital balances are Davis $40,000; Vintu, $24,000; and Wilson, $16,000. The profit-and-loss-sharing ratio has been 1:1:2 for Davis, Vintu, and Wilson, respectively. The partnership has $64,000 cash, $38,000 non-cash assets, and $22,000 accounts payable.
Requirements
1. Assuming the partnership sells the non-cash assets for $46,000; record the journal entries for the sale of non-cash assets, allocation of gain or loss on liquidation, the payment of the outstanding liabilities, and the distribution of remaining cash to partners.
2. Assuming the partnership sells the non-cash assets for $11,000; record the journal entries for the sale of non-cash assets, allocation of gain or loss on liquidation, the payment of the outstanding liabilities, and the distribution of remaining cash to partners.

Answer

$19