After Discontinuing the Ordinary Business Operations and Closing the Accounts

question 143

Essay

After discontinuing the ordinary business operations and closing the accounts on May 7, the ledger of the partnership of Anna, Brian, and Cole indicated the following:​ The partners share net income and losses in the ratio of 3:2:1. Between May 7 and May 30, the noncash assets were sold for $150,000, the liabilities were paid, and the remaining cash was distributed to the partners.​
(a)Prepare a statement of partnership liquidation.
(b)Assume the same facts as in
(a), except that the noncash assets were sold for $45,000 and any partner with a capital deficiency pays the amount of the deficiency to the partnership. Prepare a statement of partnership liquidation.

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Definitions:

Reexperiencing Trauma

The involuntary and distressing reliving of past traumatic events, often a symptom of post-traumatic stress disorder (PTSD).

Hypervigilance

An increased awareness of sensory inputs paired with an intensified range of actions aimed at identifying potential dangers.

Emotional Numbness

A condition characterized by a lack of emotional response or feeling, often as a result of trauma or stress.

Adjustment Disorder

A psychological response to an identifiable stressor or group of stressors that causes significant emotional or behavioral symptoms.