Qu The partners in Crawford Company decide to liquidate the firm when the balanc
ID: 2549020 • Letter: Q
Question
Qu The partners in Crawford Company decide to liquidate the firm when the balance sheet shows the following. n 1 CRAWFORD COMPANY Balance Sheet May 31, 2017 Liabilities and Owners Equity Cash $28,300 Notes payable Accounts receivable Allowance for doubtful accounts Inventony Equipment Accumulated depreciation-equipment 25,500 Accounts payable (1,500) Salaries and wages payable 34,200 A. Jamison, capital 20,700 S. Moyer, capital (5,300) P. Roper, capital $13,900 27,400 4,200 33,300 20,550 2,550 $101,900 Total $101,900 Total and loss 5:3:2. During the process of liquidation, the following transactions were completed in the following sequence 1. A total of $54,050 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. Prepare the entries to record the transactions. (Credit account tities are automatically indented when amount is entered. Do not indent manually.) Show Au × pdf ' MTH231 Exam 2 Spri-.docx docx Mth 231 sampl Exam 2 5 d: MKT 3000 Groups SpExplanation / Answer
Cawford Company Particular Amount (Dr) Amount (Cr) Notes Payable $ 13,900.00 Accounts Payable $ 27,400.00 Salaries & Wages Payable $ 4,200.00 Realisation Expenses $ 28,100.00 To Accounts Receivable=($25500-$1500) $ 24,000.00 To Inventory $ 34,200.00 To Equipment $ 15,400.00 (Being amount transfer to realisation A/c) Cash $ 54,050.00 To Realisation $ 54,050.00 (Being amount of cash realised from sale of non cash items Realisaton A/c $ 45,500.00 To cash $ 45,500.00 (Being amount of Liabilities paid off ($13900+$27400+$4200) A.Jamison Capital=($24850*5/10) $ 9,775.00 S.Moyer, Capital=($24850*3/10) $ 5,865.00 P. Roper ,Capital=($24850*2/10) $ 3,910.00 To Realisation=($28100+$45500-$54050) $ 19,550.00 (Being amount of loss on realisation transfer to Partner's Capital A/c) Partner's Capital A/c A.Jemison's Capital A/c Particular Amount Particular Amount To Realisation A/c $ 9,775.00 By Balance b/d $ 33,300.00 To Cash $ 23,525.00 Total $ 33,300.00 $ 33,300.00 S.Moyer's Capital A/c Particular Amount Particular Amount To Realisation A/c $ 5,865.00 By Balance b/d $ 20,550.00 To Cash $ 14,685.00 Total $ 20,550.00 $ 20,550.00 P.Roper's Capital A/c Particular Amount Particular Amount To Realisation A/c $ 3,910.00 By Balance b/d $ 2,550.00 By Cash $ 1,360.00 Total $ 3,910.00 $ 3,910.00 Cash A/c Particular Amount Particular Amount To Bal b/d $ 28,300.00 By realisation $ 45,500.00 To Realisation A/c $ 54,050.00 By A.Jemison's Capital A/c $ 23,525.00 To P/Roper's Capital A/c $ 1,360.00 By S.Moyer's Captal A/c $ 14,685.00 Total $ 83,710.00 $ 83,710.00