journalize the sale of the noncash assets for 25 000 the payment of the liabilities 559585

Accounting for the liquidation of a partnership

The Kelly & Lena partnership has the following balances on June 30, 2012:

KELLY & LENA Balance Sheet June 30, 2012

Assets

Liabilities and Owners’ equity

Cash

$ 5,000

Accounts payable

$20,000

Other assets

30,000

Kelly, capital

8,000

Lena, capital

7,000

Total assets

$35,000

Total liabilities and owners’ equity

$35,000

Kelly and Lena share profits 2:3.

Requirement

1. Journalize the sale of the noncash assets for $25,000, the payment of the liabilities, and the payment to the partners.

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