On December 31 Nola Company has cash $30000 noncash assets $150000 and liabilities $80000. Capital balances were Harper $55000 and Kahle $45000. The firm is liquidated and the noncash assets are sold for $115000. Harper and Kahle share income in a 60:40 ratio.
Instructions
Prepare entries to record (a) the sale of noncash assets and (b) the allocation of the gain (loss) on liquidation to the partners.

Question

Quizplus · Accepted Answer

The Answer of On December 31 Nola Company has cash $30000 noncash assets $150000 and liabilities $80000. Capital balances were Harper $55000 and Kahle $45000. The firm is liquidated and the noncash assets are sold for $115000. Harper and Kahle share income in a 60:40 ratio.
Instructions
Prepare entries to record (a) the sale of noncash assets and (b) the allocation of the gain (loss) on liquidation to the partners.

On December 31 Nola Company Has Cash $30000 Noncash Assets