5. Cash was paid to the partners with credit balances.River Song r.docx

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5. Cash was paid to the partners with credit balances. River Song records the distribution of cash as follows. 12/31/12 A. Mangold Capital 301 S. Otis Capital 301 Cash 101 (to record distribution of cash to partners) (b) Post to the cash and capital accounts. Cash 101 date Explanation ref Debit Credit Balance 12/31/12 beginning balance 12/31/12 J1 12/31/12 J1 12/31/12 J1
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12/31/12 J1 5. Cash was paid to the partners with credit balances. River Song records the distribution of cash as follows. 12/31/12 A. Mangold Capital 301 S. Otis Capital 301 Cash 101 (to record distribution of cash to partners) (b) Post to the cash and capital accounts. Cash 101 date Explanation ref Debit Credit Balance 12/31/12 beginning balance 12/31/12 J1 12/31/12 J1
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12/31/12 J1 12/31/12 J1 RIVER SONG COMPANY Balance Sheet May 31, 2012 Assets Liabilities and Owners' Equity Cash $ 27,500 Notes payable $ 13,500 Accounts receivable 25,000 Accounts payable 27,000 Allowance for doubtful accounts (1,000) Salaries and wages payable 4,000 Inventory 34,500 A.
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Unformatted text preview: Mangold, capital 33,000 Equipment 21,000 S. Otis, capital 21,000 Accumulated depreciation-equipment (5,500) P. Tyler, capital 3,000 Total $101,500 Total $101,500 The partners share income and loss 5:3:2. During the process of liquidation, the following transactions were completed in the following sequence. 1. A total of $55,000 was received from converting noncash assets into cash. 2. Gain or loss on realization was allocated to partners. 3. Liabilities were paid in full. 4. P. Tyler paid his capital deficiency. 5. Cash was paid to the partners with credit balances. zation Mangold Otis Instructions (a) Prepare the entries to record the transactions. (b) Post to the cash and capital accounts. (c) Assume that Tyler is unable to pay the capital deficiency. (1) Prepare the entry to allocate Tyler's debit balance to Mangold and Otis. (2) Prepare the entry to record the final distribution of cash....
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