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Partnership Liquidation The balance sheet of the ABC partnership just prior to liquidation appears below:

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Partnership Liquidation;The balance sheet of the ABC partnership just prior to liquidation appears below;ABC PARTNERSHIP;Balance Sheet;December 31, 2010;Assets Liabilities and Owners' Equity;Cash $ 70,000 Liabilities $120,000;Noncash assets 190,000 Agler, Capital 20,000;Bell, Capital 80,000;Colaw, Capital 40,000;$260,000 $260,000;Other information;1. The partners Agler, Bell, and Colaw share profits and losses in the ratio of 6:3:1.;2. The noncash assets are sold for $140,000.;3. The liabilities are paid in full.;4. The remaining assets are distributed to the partners. Assume that if any partner has a capital deficiency, he will not be able to pay the amount owed to the partnership.;Instructions;Prepare the entries to record the liquidation of the ABC partnership.

 

Paper#25406 | Written in 18-Jul-2015

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