The Balance Sheet of Rogers, Dennis & Berry LLP Prior

question 70

Essay

The balance sheet of Rogers, Dennis & Berry LLP prior to liquidation included the following:
$$\begin{array} { | l | r | } \hline \text { Cash } & \$ 40,000 \\\hline \text { Noncash assets } & 80,000 \\\hline \text { Liabilities } & 20,000 \\\hline \text { Loan Payable to Rogers } & 10,000 \\\hline \text { Rogers, Capital } & 35,000 \\\hline \text { Dennis, Capital } & 30,000 \\\hline \text { Berry, Capital } & 25,000 \\\hline\end{array}$$ The three partners shared net income and losses in a 5:3:2 ratio, respectively. Noncash assets were sold for $60,000. Creditors were paid in full, partners were paid $35,000, and the balance of cash was retained pending future developments.
Record the journal entry for payment of outstanding liabilities to the creditors.

---

Definitions:

Welfare-Reform

Changes made to the public assistance system aimed at reducing dependency on government aid by promoting job preparation and work.

Contract With America

A legislative agenda advocated for by the Republican Party during the 1994 midterm elections, aiming to reshape U.S. federal government policies.

Whitewater Investigation

A political inquiry into real estate investments made by Bill and Hillary Clinton along with their associates in the Whitewater Development Corporation, leading to a broader investigation of the Clinton administration.

Continuing Budget Resolution

A type of legislation used by the United States Congress to fund government agencies if a formal appropriations bill has not been signed into law by the end of the fiscal year.