After liquidating noncash assets and paying creditors, account balances in the Mann Co. are Cash $17, 940, A Capital (Cr.) $8, 030, B Capital (Cr.) $6, 380, and C Capital (Cr.) $3, 530. The partners share income equally. Journalize the final distribution of cash to the partners.

Question

Lisa Miller

Business

16 June, 08:41

After liquidating noncash assets and paying creditors, account balances in the Mann Co. are Cash $17, 940, A Capital (Cr.) $8, 030, B Capital (Cr.) $6, 380, and C Capital (Cr.) $3, 530. The partners share income equally. Journalize the final distribution of cash to the partners.

+5

Answers (1)

Know the Answer?

Blaise · Answer 1

Given that,

Account balances:

A Capital = $8,030

B Capital = $6,380

C Capital = $3,530

The Journal entry is as follows:

A's capital A/c Dr. $8,030

B's capital A/c Dr. $6,380

C's capital A/c Dr. $3, 530

To cash A/c $17,940

(To record the final distribution of cash to the partners)