Julie Harris, William Gosse, and Regina Ryan started a partnership to provide mobile tax services. The partners' capital account at the beginning of 2014 was Harris, $120,000; Gosse, $180,000; and Ryan, $90,000. The partnership agreement states that the partners will share profit equally.
On December 31, 2014, the partnership reported a loss of $21,000 for the year. During the year, Harris withdrew $80,000 and Gosse withdrew $140,000. Ryan did not make any withdrawals.
On January 1, 2015, the partners had a major disagreement as to the direction of the partnership and decided to liquidate the business. The December 31, 2014 balance sheet showed the following balances: On January 1, 2015, the machinery was sold for proceeds of $133,000.
Instructions
Prepare the journal entry to record the following:
a. The allocation of the loss to the partners on December 31, 2014.
b. The closing of the drawings accounts on December 31, 2014.
c. The liquidation of the partnership on January 1, 2015.

Question

Julie Harris, William Gosse, and Regina Ryan started a partnership to provide mobile tax services. The partners' capital account at the beginning of 2014 was Harris, $120,000; Gosse, $180,000; and Ryan, $90,000. The partnership agreement states that the partners will share profit equally.
On December 31, 2014, the partnership reported a loss of $21,000 for the year. During the year, Harris withdrew $80,000 and Gosse withdrew $140,000. Ryan did not make any withdrawals.
On January 1, 2015, the partners had a major disagreement as to the direction of the partnership and decided to liquidate the business. The December 31, 2014 balance sheet showed the following balances:  On January 1, 2015, the machinery was sold for proceeds of $133,000.
Instructions
Prepare the journal entry to record the following: 
a. The allocation of the loss to the partners on December 31, 2014.
b. The closing of the drawings accounts on December 31, 2014.
c. The liquidation of the partnership on January 1, 2015.

Quizplus · Accepted Answer

The Answer of Julie Harris, William Gosse, and Regina Ryan started a partnership to provide mobile tax services. The partners' capital account at the beginning of 2014 was Harris, $120,000; Gosse, $180,000; and Ryan, $90,000. The partnership agreement states that the partners will share profit equally.
On December 31, 2014, the partnership reported a loss of $21,000 for the year. During the year, Harris withdrew $80,000 and Gosse withdrew $140,000. Ryan did not make any withdrawals.
On January 1, 2015, the partners had a major disagreement as to the direction of the partnership and decided to liquidate the business. The December 31, 2014 balance sheet showed the following balances:  On January 1, 2015, the machinery was sold for proceeds of $133,000.
Instructions
Prepare the journal entry to record the following: 
a. The allocation of the loss to the partners on December 31, 2014.
b. The closing of the drawings accounts on December 31, 2014.
c. The liquidation of the partnership on January 1, 2015.

Julie Harris, William Gosse, and Regina Ryan Started a Partnership