After Several Years of Operation, the Partnership of Raimondo, Rodriguez

question 39

Essay

After several years of operation, the partnership of Raimondo, Rodriguez, and Rosenfeld is being liquidated. After making closing entries on September 30, 20--, the following accounts remain open: $\begin{array}{lr}\text { Cash } & 18,000 \\\text { Merchandise inventory } & 73,000 \\\text { Other assets } & 157,000\\\text { Accounts payable } && 61,000 \\\text { M. A. Raimondo, capital } & &50,000 \\\text { M. E. Rodriguez, capital } & &50,000 \\\text { C. R. Rosenfeld, capital } && 87,000\end{array}$ The noncash assets are sold for $275,000. Profits and losses are shared equally.
Required:
Prepare journal entries for the following transactions:
a.
The sale of the noncash assets on October 1.
b.
Payment of the liabilities on October 15.
c.
Division of the remaining cash on October 20.

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Definitions:

Cover

To provide protection against something, such as insurance coverage protects against specific risks.

Non-breaching Buyers

Buyers who have fulfilled their contractual obligations and have not violated the terms of the contract.

UCC

The Uniform Commercial Code is an all-encompassing set of legal directives that oversee commercial trades in the United States.

Insolvent

A financial state in which an individual or entity is unable to meet their debt obligations as they become due because their liabilities exceed their assets.