The accounts of Sully and Todd had the following bala nces when they decided to discontinue operations:
|
Accounts Payable
|
$ 6,700
|
Lara Todd, Capital
|
$15,000
|
|
Accumulated Depreciation, Equip.
|
6,150
|
Merchandise Inventory
|
19,000
|
|
Cash
|
16,000
|
Notes Payable
|
1,500
|
|
Equipment
|
8,800
|
Supplies
|
550
|
|
Frank Sully, Capital
|
15,000
|
|
|
The partners share profits and losses equally. Present the entries to record the following transactions:
(a) Received $400 upon sale of supplies
(b) Disposed of the merchandise inventory, receiving $22,000
(c) Sold the equipment for $3,000
(d ) Distributed the loss or gain to the partners
(e) Paid all liabilities
(f) Distributed the remaining cash 373.