The Albert, Boynton, and Creamer Partnership Was in the Process

question 30

Essay

The Albert, Boynton, and Creamer partnership was in the process of liquidating its assets and going out of business.Albert, Boynton, and Creamer had capital account balances of $80,000, $120,000, and $200,000, respectively, and shared profits and losses in the ratio of 1:3:2.Equipment that had cost $90,000 and had a book value of $60,000 was sold for $24,000 cash.
Required:
Prepare the appropriate journal entry to record the sale of the equipment, distributing any gain or loss directly to the partners.

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Definitions:

Self-Actualization

Attaining or meeting one's capabilities and potential, viewed as an essential impulse or need within everyone.

Belongingness

The human emotional need to be an accepted member of a group, whether it is friends, family, or co-workers, which is crucial for social development and mental health.

Conditioning Principles

The processes of learning associations through classical and operant conditioning, influencing behavior.

Physiological Functioning

The operations and processes of the body's systems, including the cardiovascular, respiratory, digestive, and neurological systems.