Lat04
Jones, Smith, and Tandy are partners in a furniture store that began liquidation on
January 1, 20X1, at which time the ledger contained the following account balances:
Debit
Credit
_________________________________________________________________
Cash
$ 15,000
Accounts receivable
20,000
Inventories
65,000
Land
50,000
Buidings
100,000
Accumulated depreciation—buildings
$ 40,000
Furniture and fixtures
50,000
Accumulated depreciation—furniture and fixtures
30,000
Accounts payable
80,000
Jones capital (20%)
40,000
Smith capital (30%)
60,000
Tandy capital (50%)
50,000
________
________
$ 300,000
$ 300,000
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The following transaction and events occurred during the liquidation process:
January
Inventories were sold for $20,000 cash, collectioans on account totaled
$14,000, and half of the amount due to creditors was paid.
February
Land costing $40,000 was sold for $60,000, the remaining land and
buildings were sold for $40,000, half of the remaining receivables were
collected, and the remainder were uncollectible.
March
The remaining liabilities were paid and available cash was distributed to
the partners in final liquidation.
Required: Prepare a statement of liquidation for the Jones, Smith, and Tandy partnership.