Question - Asure, Ramirez, and Soney, who share income and loss in a 2:1:2 ratio, plan to liquidate their partnership. At liquidation , their balance sheet appears as follow.
Asure , Ramirez, And Soney
Asset:
Cash: 174,300
Equipment: 308,600
Total assets: 482,900
Liabilities and equity:
A/P: 171,300
Asure, Capital: 150,200
Ramirez, Capital: 97,900
Soney, Capital: 63,500
Total Liabilities and equity: 482,900
Required: Prepared journal entries for (a) the sale of equipment,(b) the allocation of its gain or loss (c) the payment of liabilities at book value and (d) the distribution of cash in each of the following separate cases, equipment is sold for (1) 325,000 (2) 265,000 (3) 100,000 and any partners with capital deficits pay in the amount of their deficits and (4) 75,000 and the partners have no assets other than those invested in the partnership.