On December 31, Thompson Company has cash $30,000, noncash assets $150,000, and liabilities $80,000. Capital balances were Stine $55,000 and Pine $45,000. The firm is liquidated, and the noncash assets are sold for $125,000. Stine and Pine 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, Thompson Company has cash $30,000, noncash assets $150,000, and liabilities $80,000. Capital balances were Stine $55,000 and Pine $45,000. The firm is liquidated, and the noncash assets are sold for $125,000. Stine and Pine 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, Thompson Company Has Cash $30,000, Noncash Assets