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:

Severe Punishment

Harsh or extreme disciplinary actions taken in response to an individual's wrongdoing, often intended as a deterrent against future offenses.

Norms

The unwritten rules or standards of behavior considered acceptable within a society or social group.

Consumerism

The social and economic order that encourages the acquisition of goods and services in ever-increasing amounts.

Adapt Environment

The process by which individuals or groups adjust to changes in their surrounding environmental conditions to improve compatibility and comfort.