Chapter 05, Partnership, termination and liquidation

On 41 the inventory is sold for espectively on 41 the

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Unformatted text preview: ly. On 4/1, the inventory is sold for espectively. On 4/1, the inventory is sold for $35,000. $35,000. Prepare the journal entry to record the Prepare the journal entry to record the sale of the inventory. sale of the inventory. Page 5 Termination & Liquidation Example Note that the loss on the sale of inventory of Note that the loss on the sale of inventory of $7,000 is assigned $4,200 ($7,000 x 60%) to $7,000 is assigned $4,200 ($7,000 x 60%) to Smith and $2,800 ($7,000 x 40%) to Jones. Smith and $2,800 ($7,000 x 40%) to Jones. Page 6 Termination & Liquidation Example The balances after selling the inventory were: The balances after selling the inventory were: Page 7 Termination & Liquidation Example Assume that 70% of the Accounts Assume that 70% of the Accounts Receivable are collected. The Receivable are collected. The rremaining accounts receivables emaining accounts receivables are written off. are written off. Prepare the entry to record the Prepare the entry to record the collection of the r...
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This document was uploaded on 03/25/2014.

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