Question

Immediately prior to the process of liquidation on December 31, 2014 partners Micco, Niccum, and Orwell...

Immediately prior to the process of liquidation on December 31, 2014 partners Micco, Niccum, and Orwell of MNO Partnership have capital balances of $70,000, $20,000, and $40,000, respectively. There is a cash balance of $20,000, noncash assets total $170,000, and liabilities total $60,000. The partners share net income and losses in the ratio of 3:2:1. (Different than lecture.)

If there is a defeciency assume the partner pays it. Sold non-cash assets for $80,000.

1. Prepare the Statement of Partnership Liquidation fpr the period December 1 - 31, 2014. (Format V27 Pg 610.)

2. Journalize the entries to record the liquidation outlined below, using Assets as the account title for the noncash assets and Liabilities as the account title for all creditors' claims.

MNO Partnership
Statement of Partnership Liquidation
For periond December 1 - 31, 2014
　 　 Cash NonCash Liabilities Micco Niccum Orwell
Percentage Income sharing rations xx.xx% >> 　 　 　 　 　 　 　
Balances prior to liquidation: 　 　 　 　 　 　 　
Sold the noncash assets & Division of Gain/Loss 　 　 　 　 　 　 　
Balances after realization. 　 　 　 　 　 　 　
Paid the liabilities..   　 　 　 　 　 　 　
Balances after payment of liabilities 　 　 　 　 　 　 　
Received cash from the partner with the deficiency. 　 　 　 　 　 　 　
Balances 　 　 　 　 　 　 　
Distributed cash to the partners. 　 　 　 　 　 　 　
Final Balances 　 　 　 　 　 　 　
　 　 　 　 　 　 　 　
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