leyPLUS Weygandt, Accounting Principles, 12e e Read, Study & Practice Assignment
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leyPLUS Weygandt, Accounting Principles, 12e e Read, Study & Practice Assignment Gradebook ORION Downloadable eTextbook nment Open Assignment Problem 12-3A The partners in Crawford Company decide to liquidate the firm when the balance sheet shows the following CRAWFORD COMPANY Balance Sheet May 31, 2017 Liabilities and ers Equity $13,600 27,500 4,500 33,000 21,250 2,550 $102,400 $29,100 Notes payable Accounts receivable Allowance for doubtful accounts Inventory Equipment Accumulated depreciation-equipment 25,300 Accounts payable (1,500) Salaries and wages payable 34,900 A. Jamison, capital 20,600 S. Moyer, capital (6,000) P. Roper, capital Total $102,400 Total the following transactions were compieted in the folowing sequence. The partners share income and loss s:3-2. During the process of liquidation, 1. A total of $53,750 was received from converting noncash assets into cash. 2. Gain or loss on realization was allocated to partners. 4. P. Roper paid his capital deficiency 5. Cash was paid to the partners with credit balances Your answer is partially correct. Try again.Explanation / Answer
2. If Roper is unable to pay the capital deficiency.
Crawford Company Journal entries on liquidation Ref Account title Debit Credit 1 Cash 53750 Allowance for doubtful accounts 1500 Accumulated depreciation - equipment 6000 Loss on realisation 19550 Accounts receivable 25300 Inventory 34900 Equipment 20600 (Sales of non cash assets) 2 Jamison , Capital 9775 Maoyer, Capital 5865 Roper, Capital 3910 Loss on realisation 19550 (Loss onrealization distributed) 3 Note payable 13600 Accounts payable 27500 Salaries and wages payable 4500 Cash 45600 (Payment of all liabilities fully) 4 Cash 1360 Roper, capital 1360 (Payment of capital deficiency by Roper) 5 Jamison, Capital 23225 Moyer, Capital 15385 Cash 38610 (Final distribution of cash topartners)Related Questions
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