Liquidation Losses a. When selling partnership accounts receivable at a loss, what accounts are affected? b. What happens to the partners capital accounts when noncash assets are sold at a loss?
Financial Accounting Week 14 Bold: key word Red: formulartant è: Therefore, in consequence Tuesday, November 29, 2016 Treasury Stock Reminder: There are 2 types of capital: • Earned capital • Contributed/donated/paid-in capital à arises when potential investors purchase ownership interest (stock). In a corporation, contributed capital is split in 2 different accounts: § Ownership interest at par § Additional amount paid à this happens when there’s a stated or par value on stock and with the market price exceeding that value. Earned capital is in the Statement of Stockholders’ Equity as Retained Earnings. We measure success vi