416563751735850 advanceds hid 420 Yahco Apple Cloud GogeWiki

416563751735850 advanced?s.... &hid; 420 Yahco Apple Cloud GogeWikipeda Facebook Citation Bing SP Principles of.. ter 12 &13 Connect Help Save &Exit; Sub Henry, Luther, and Gage are dissolving their partnership. Their partnership agreement allocates each partner 13 of all income and losses. The current period\'s ending capital account balances are Henry $45.000, Luther, $37,000, and Gage, essets are sold and liabilities are paid,there is 577.000 in cash to be distributed. Gage is unable to pay the deficiency entry to record the distribution should be: $(5,00o) After all The jourmal Multiple Choice Debit Henry, Capital $42.500; debit Luther, Capital $34,500 cnedit Cash $77.000 Debit Henry. Capital $25.667, debit Luther Captel $25.667, debt Gage, Capitel $25666 credit Cash $72000 Debit Cash $77000, debit Gage, Capital $5.000 credit Henry, Copital $45,0C0, credt Luther, Capital $37,000 Debit Cash $77000, credit Hey. Capitel $25.667, creait Luthet Captal $25,667; credt Gage, Cepital $25,666 20 2 3 4 5

Solution

Solution: Answer is a. Debit Henry Capital $42,500 , Debit Luther, Capital $34,500 , credit cash $77,000 Working Notes: Since, Gage unable to pay his deficiency of $5,000 All the partners are equal partners , hence remaining two partners Henry & Luther make the deficiency good. After deficiency is make goods by Henry & Luther they will share the cash in their capital accounts ratio Henry, Capital $45,000 = $45,000 - $2,500 =$42,500 Luther, Capital $37,000 =$37,000- $2,500 =$34500 Gage, Capital ($5,000) =-$5,000 + $5000 =$0 Now, Gage will not participate in the cash distribution his capital account is nil Henry =(42,500/77,000) x $77,000 =$42,500 Luther =(34,500/77,000) x $77,000 =$34,500 Hence, the journal entry to record the distribution should be General Journal Debit Credit Henry, Capital $42,500 Luther, Capital $34,500 Cash $77,000 Please feel free to ask if anything about above solution in comment section of the question.