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ABC is a partnership owned by Alders, Byron, and Calvin

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Question;ABC is a partnership owned by Alders, Byron, and Calvin, who share profits and losses in the ratio of 1:3:4. The account balances of the partnership at June 30 follows:ABCAdjusted Trial BalanceJune 30, 2014Account TitleCash $33,000DRNon-Cash Assets $117,000DRNotes Payable $32,000CRAlders, Capital $22,000CRByron, Capital $50,000CRCalvin, Capital $53,000CRAlders, Withdrawals $9,000DRBryon, Withdrawals $27,000DRCalvin, Withdrawals $49,000DRSales Revenue $164,000CRSalaries Expense $74,000DRRent Expense $12,000DRTotal $321,000DR $321,000CRRequirements:1. Prepare the June 30 entries to close the revenue, expense, income summary, and withdrawal accounts.2. Open each partner's capital T-accounts with the adjusted balance, post the closing entries to their accounts, and determine each partner's ending capital balance.3. Prepare the June 30 entries to liquidate the partnership assuming the non-cash assets are sold for $120,000.

 

Paper#45153 | Written in 18-Jul-2015

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