Chapter 05, Partnership, termination and liquidation

Collection of the receivables page8 termination

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Unformatted text preview: eceivables. collection of the receivables. Page 8 Termination & Liquidation Example Smith and Jones collects $24,500 of the A/R. Smith and Jones collects $24,500 of the A/R. The loss is $10,500. Allocate 60% of the The loss is $10,500. Allocate 60% of the lloss to Smith and 40% of the loss to Jones. oss to Smith and 40% of the loss to Jones. Page 9 Termination & Liquidation Example Smith and Jones sell the fixed Smith and Jones sell the fixed assets for $175,000. assets for $175,000. Prepare the journal entry to record the Prepare the journal entry to record the sale of fixed assets. sale of fixed assets. Page 10 Termination & Liquidation Example The gain on fixed assets is $15,000. The gain on fixed assets is $15,000. Allocate 60% to Smith and 40% to Allocate 60% to Smith and 40% to Jones. Jones. Page 11 Termination & Liquidation Example Once all the assets are sold, the accounts Once all the assets are sold, the accounts payable are paid off. payable are paid off. Prepare the entry to pay off the Prepare the entry to pay off...
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This document was uploaded on 03/25/2014.

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