Question

roblem 12-03A a-c (Part Level Submission) (Video) the partners in Wildhorse Company decide to liquidate the firm when the balance sheet shows the following. Assets Cash Accounts receivable Allowance for doubtful accounts Inventory Equipment Accumulated depreciation equipment Wildhorse Company Balance Sheet May 31, 2020 Liabilities and Owners' Equity $28,200 Notes payable 24,800 Accounts payable (1,100) Salaries and wages payable 34,900 A. Jamison, capital 20,800 S. Moyer, capital (5,900) P. Roper, capital $13,300 27,400 4,300 34,000 20,300 2,400 $101,700 $101,700 The partners share income and loss 5:3:2. During the process of liquidation, the following transactions were completed in the followi 1. A total of $55,100 was received from converting noncash assets into cash. 2. Gain or loss on realization was allocated to partners. 3. Liabilities were paid in full. 4. P. Roper paid his capital deficiency. 5. Cash was paid to the partners with credit balances. (a) Your answer is partially correct. Try again. Prepare the entries to record the transactions. (Credit account titles are automatically indented when amount is entered. Do not like No. Account Titles and Explanation Debit Credit 1. Cash | Allowance for Doubtful Accounts Inventory

Answer 1

Accounts	Debit	Credit
Account Receivable		24,800
Allowance for doubtful debts	1,100
Inventory		34,900
Equipment		20,800
Accumulated depreciaiton - equipment	5,900
Cash	55,100
A Jamision Capital	9,200
S. Moyer Capital	5,520
P. Roper Capital	3,680
(Being asset sold and loss of 18400 divided)
Notes Payable	13,300
Accounts Payable	27,400
Salaries and wages Payable	4,300
Cash		45,000
(Being payment of liabilities)
Cash	1,280
P. Roper Capital		1,280
(Deficiency received)
A Jamision Capital	24,800
S. Moyer Capital	14,780
Cash		39,580
(Being return of capital to partner)

Cash Account
Debit	Amount	Credit	Amount
Opening Balance	28,200	Liabilities Paid	45,000
Sale of Asset	55,100	A Jamision Capital	24,800
P. Roper Capital	1,280	S. Moyer Capital	14,780
	84,580		84,580
A Jamision Capital
Debit	Amount	Credit	Amount
Loss on sale of asset	9,200	Opening Balance	34,000
Cash	24,800		-
	-		-
	34,000		34,000
S. Moyer Capital
Debit	Amount	Credit	Amount
Loss on sale of asset	5,520	Opening Balance	20,300
Cash	14,780
	-
	20,300		20,300
P. Roper Capital
Debit	Amount	Credit	Amount
Loss on sale of asset	3,680	Opening Balance	2,400
		Cash	1,280
			-
	3,680		3,680

Working Notes :

Particulars	Cash	Non-cash Assets	Liabilities	A Jamision	S. Moyer	P. Roper
Balances	28,200	73,500	45,000	34,000	20,300	2,400
Sale of Assets & Division of Losses (Loss of 264000 divided in profit sharing ratio)	55,100	(73,500)		(9,200)	(5,520)	(3,680)
Payment of Liabilities	(45,000)		(45,000)
Balances after payment of liabilites	38,300	-	-	24,800	14,780	(1,280)
Receipt of Deficiency	1,280					1,280
Balance after Bankcrupt partner loss distribution	39,580			24,800	14,780	-
Less : Cash Distribution to partner	(39,580)			(24,800)	(14,780)	-
Final Balances	-	-	-	-		-