CH16 Simple Liquidation BB

CH16 Simple Liquidation BB - Barbara, Ruth, and Meg...

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Barbara, Ruth, and Meg are liquidating their business. They share income and losses in a 3:1:1 ratio, respectively, and currently have capital balances of $70,000, $20,000, and $70,000, respectively. In addition, the partnership has $80,000 in accounts payable, and $240,000 in inventory. Barbara and Meg are personally solvent, but Ruth is not. Assuming that the inventories are sold for $130,000, prepare all liquidation entries.
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Unformatted text preview: Barbara, Ruth, and Meg Statement of Liquidation February 1, 2008 Cash Inventory Accounts Barbara, C Ruth, C Meg, C Gain/Loss Payable from Realization Balance, 02/01 Sale of Inventories Allocation of Gain/Loss from Realization Payment of Liabilities Distribution of Partners Share of Ruths Deficit Distribution to Partners...
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This note was uploaded on 09/30/2011 for the course ECO 472 taught by Professor Kim during the Spring '11 term at CUNY Hunter.

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CH16 Simple Liquidation BB - Barbara, Ruth, and Meg...

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