Advanced Accounting Problem
I have tried and tried to do this problem and I am failing to do so miserably. This type of problem is completely new to me and I really want to, and need to understand how to do this. Can you please prepare the statement and explain to me how you went about doing so? Thank you for your time and help, it is greatly appreciated! Best regards, Jim
Jones, Smith, and Tandy are partners in a furniture store that began liquidation on January 1, 2008 when the ledger contained the following account balances:
Accounts Receivable 20,000
Acc Depreciation - Buildings $40,000
Furniture and Fixtures 50,000
Acc Depreciation - Furniture & Fixt 30,000
Accounts Payable 80,000
Jones Capital (20%) 40,000
Smith Capital (30%) 60,000
Tandy Capital (50%) 50,000
Totals $300,000 $300,000
The following transactions and events occured during the liquidation process:
January: Inventories were sold for $20,000 cash, collections on
account totaled $14,000, and half of the amount due to
creditors was paid.
February:Land costing $40,000 was sold for $60,000, the remaining
land and buildings were sold for $40,000, half the
remaining receivables were collected, and the remainder
March: The remaining liabilities were paid, and available cash
was distributed to the partners in final liquidation.
Required: Prepare a statement of liquidation for the Jones, Smith and
...rcentages listed next to the partners were their share for both gains and losses.
After you adjust their partnership accounts to elimate the loss, you will have a January 31 balance.
You will then create the entries for February. In this month there will be both gains and losses, but it will net to a loss. You will then post these losses in the same ...