CRAWFORD COMPANY Balance Sheet May 31, 2017 Assets Liabilities and Owners’ Equit
ID: 2594352 • Letter: C
Question
CRAWFORD COMPANY
Balance Sheet
May 31, 2017
Assets
Liabilities and Owners’ Equity
$28,000
$13,100
25,600
26,700
(1,100
4,100
34,900
33,200
20,100
22,650
(5,500
2,250
$102,000
$102,000
No.
Account Titles and Explanation
Debit
Credit
1.
2.
3.
4.
5.
Cash
S. Moyer, Capital
A. Jamison, Capital
P. Roper, Capital
No.
Account Titles and Explanation
Debit
Credit
1.
2.
The partners in Crawford Company decide to liquidate the firm when the balance sheet shows the following.CRAWFORD COMPANY
Balance Sheet
May 31, 2017
Assets
Liabilities and Owners’ Equity
Cash$28,000
Notes payable$13,100
Accounts receivable25,600
Accounts payable26,700
Allowance for doubtful accounts(1,100
) Salaries and wages payable4,100
Inventory34,900
A. Jamison, capital33,200
Equipment20,100
S. Moyer, capital22,650
Accumulated depreciation—equipment(5,500
) P. Roper, capital2,250
Total$102,000
Total$102,000
The partners share income and loss 5:3:2. During the process of liquidation, the following transactions were completed in the following sequence.
1. A total of $56,750 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.
Explanation / Answer
Workings:
Workings:
No. Account Titles and Explanation Debit Credit 1 Cash 56750 Allowance for doubtful accounts 1100 Accumulated depreciation-equipment 5500 Loss on realization 17250 Accounts receivable 25600 Inventory 34900 Equipment 20100 (To record disposal of noncash assets) 2 A. Jamison, Capital (5/10 x $17250) 8625 S. Moyer, Capital (3/10 x $17250) 5175 P. Roper, Capital (2/10 x $17250) 3450 Loss on realization 17250 (To record allocation of loss to partners) 3 Notes payable 13100 Accounts payable 26700 Salaries and wages payable 4100 Cash 43900 (To record payment of iabilities) 4 Cash 1200 P. Roper, Capital 1200 (To record cash brought in for capital deficiency) 5 A. Jamison, Capital 24575 S. Moyer, Capital 17475 Cash 42050 (To record cash distribution to other partners)