90 likes | 101 Views
LESSON 23-3. Dissolving a Partnership. ACCOUNT BALANCES BEFORE REALIZATION. page 686. Value of Asset Received. –. Book Value of Asset Sold. =. Gain on Realization. Cash $13,000.00. –. Cost $20,000.00 Accum. Depr. 8,000.00 Book Value $12,000.00. =. $1,000.00. GAIN ON REALIZATION.
E N D
LESSON 23-3 Dissolving a Partnership
ACCOUNT BALANCES BEFORE REALIZATION page 686 LESSON 23-3
Value of Asset Received – Book Value ofAsset Sold = Gain on Realization Cash $13,000.00 – Cost $20,000.00 Accum. Depr. 8,000.00 Book Value $12,000.00 = $1,000.00 GAIN ON REALIZATION page 686 August 1, 20--. Received cash from sale of truck, $13,000.00: original cost, $20,000.00; total accumulated depreciation recorded to date, $8,000.00. Receipt No. 316. 1 2 1. Calculate the gain. 2. Record the entry. LESSON 23-3
Value of Asset Received – Book Value ofAsset Sold = Loss on Realization Cash $1,100.00 – Supplies $1,500.00 = $(400.00) LOSS ON REALIZATION page 687 August 1. Received cash from sale of supplies, $1,100.00; balance of supplies account, $1,500.00. Receipt No. 317. 1 2 1. Calculate the loss. 2. Record the entry. LESSON 23-3
LIQUIDATING LIABILITIES page 688 August 4, 20--. Paid cash to all creditors for the amounts owed, $4,000.00. Check No. 422. LESSON 23-3
ACCOUNT BALANCES AFTER LIQUIDATION OF NONCASH ASSETS AND PAYMENT OF LIABILITIES page 688 LESSON 23-3
Balance of Loss and Gain on Realization × Fixed Percentage = Share of the Balance of Loss and Gain on Realization Walker Jeter Total $600.00 $600.00 × × 60% 40% = = $360.00 240.00 $600.00 DISTRIBUTING LOSS OR GAIN ON REALIZATION TO PARTNERS page 689 August 6, 20--. Recorded distribution of gain on realization: to Adam Walker, $360.00; to Shirley Jeter, $240.00. Memorandum No. 412. 1 1. Calculate each partner’s share of gain or loss. 2. Record entry to distribute gain or loss. 2 LESSON 23-3
DISTRIBUTING REMAINING CASH TO PARTNERS page 689 August 6. Recorded final distribution of remaining cash to partners: to Adam Walker, $18,360.00; to Shirley Jeter, $12,740.00. Check Nos. 423 and 424. LESSON 23-3
TERMS REVIEW page 690 • liquidation of a partnership • realization • limited liability partnership (LLP) LESSON 23-3