The Redtail Partnership Agrees to Dissolve

question 146

Essay

The Redtail Partnership agrees to dissolve. The remaining cash balance after liquidating partnership assets and liabilities is $70,000. The final capital account balances are: Paulson,
$35,000; Gray, $25,000; and Chang, $10,000. Prepare the journal entry to distribute the remaining cash to the partners.

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Definitions:

Size And Scope

Refers to the scale and breadth of a business or project, including its capacities, reach, and the extent of activities covered.

Government

An organized system that provides leadership and governance, enforces laws, and administers public policy and services to its citizens.

Inefficient Outcomes

Situations where resources are not allocated optimally, leading to wasted resources or unfulfilled potential in an economy.

Invisible Hand

A metaphor for the unseen forces that move the free market economy through competition for scarce resources.