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Liquidating the Partnership with Losses on the Sale of Noncash Assets Guice and Ward

Accounting: First Year Course | 1st Edition | ISBN: 9780078688294 | Authors: Glencoe ISBN: 9780078688294 416

Solution for problem 28-5 Chapter 28

Accounting: First Year Course | 1st Edition

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Accounting: First Year Course | 1st Edition | ISBN: 9780078688294 | Authors: Glencoe

Accounting: First Year Course | 1st Edition

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Problem 28-5

Liquidating the Partnership with Losses on the Sale of Noncash Assets Guice and Ward decide to end their partnership on September 21. They share profits and losses equally. The account balances of the partnership as of that date follow. Cash $6,500 Inventory 8,800 Equipment (book value) 2,700 Accounts Payable 4,000 Guice, Capital 6,800 Ward, Capital 7,200 The partnership sold the inventory for $5,000 and the equipment for $2,000. All of the accounts payable will be paid in full with the cash. Instructions In your working papers, prepare the journal entries to record the liquidation of this partnership. Use general journal page 85.

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Chapter 19  UCC Merchants & Sale of Goods o Good faith o Right to cure  Price, Quantity, Quality, Terms of Delivery o Course of dealing o Trade usage: trade terms (bakers dozen, 4x4) o Modification: new agreement  agreement, capacity, consideration  UCC, not a contract o Assignment: binding  Delivery: seller has to make available at their place of business o Buyers right & obligation to inspect (formal amount of time) o Accept/revoke/reject o Rights on improper delivery  Confirming- not going to comply  Reject/cure o Repudiation-not going to comply  Sue/cover  Someone does something from providing confo

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Chapter 28, Problem 28-5 is Solved
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Textbook: Accounting: First Year Course
Edition: 1
Author: Glencoe
ISBN: 9780078688294

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Liquidating the Partnership with Losses on the Sale of Noncash Assets Guice and Ward