Question

Required Information [The following information applies to the questions displayed below.] The partnership of Butler, Osman, and Ward was formed several years ago as a local tax preparation firm. Two partners have reached retirement age, and the partners have decided to terminate operations and liquidate the business. Liquidation expenses of $43,000 are expected. The partnership balance sheet at the start of liquidation is as follows: Cash Accounts receivable Office equipment (net) Building (net) Land $ 39, eee 69,689 59, eee 155, eee 145,000 $ 467, eee Liabilities Butler, loan Butler, capital (25%) Osman, capital (25%) Ward, capital (50%) Total liabilities and capital $ 179,000 39,80 95, eee 39, eee 115, eee $ 467, eee Total assets The following transactions transpire in chronological order during the liquidation of the partnership: 1. Collected 90 percent of the accounts receivable and wrote the remainder off as uncollectible. 2. Sold the office equipment for $24,500, the building for $114,000, and the land for $156,000. 3. Distributed safe payments of cash. 4. Pald all liabilities in full. 5. Pald actual liquidation expenses of $34,500 only. 6. Made final cash distributions to the partners. Prepare Journal entries to record these liquidation transactions. (If no entry is required for a transaction/event, select "No Journal entry required" In the first account field.)

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solution Date .......... Ona Du. .روا T T T bo 2,125 2,125 4,250 Butler Capital (25%* 8,500) Osman Capital (25%* 8,500) Ward Capital (50%* 8,500) Cash (To record distribution col Memaining cash af $8,500) (43,000–34,508) 8,500 Scanned by TapScanner