After several years of operations, the partnership of Bald
Question and Solution
After several years of operations, the partnership of Baldwin, Cowan, and Stewart is to be liquidated. After making closing entries on June 30, 20--, the following accounts remain open:
The noncash assets are sold for $250,000. Profits and losses are shared equally. REQUIRED 1. Prepare a statement of partnership liquidation for the period July 1–20, 20--, showing the following: (a) The sale of noncash assets on July 1 (b) The allocation of any gain or loss to the partners on July 1 (c) The payment of the liabilities on July 15 (d) The distribution of cash to the partners on July 20 2. Journalize these four transactions in a generaljournal.