The partners of Donald, Chief & Berry LLP decided to liquidate on August 1, 2018. The balance sheet of the partnership is as follows, with the profit and loss ratio of 25%, 45%, and 30%, respectively. The partners do not expect to incur further liquidation expenses.DONALD, CHIEF, & BERRY LLPBalance SheetAugust 1, 2018AssetsLiabilities & Partners' CapitalCash$60,000 Trade accounts payable$130,000Loan receivable from Donald 40,000 Loan payable to Chief 60,000Other assets 500,000 Donald, capital 140,000 Chief, capital 160,000 Berry, capital 110,000Total$600,000 Total$600,000??A portion of the Other Assets with a carrying amount of $200,000 were sold for $140,000, and all available cash was distributed.?Prepare the journal entry for Donald, Chief & Berry LLP on
August 1, 2018, to recognize proceeds from the sale of Other Assets.
What will be an ideal response?
| Cash | 140,000 | |
| Donald, Capital | 15,000 | |
| Chief, Capital | 27,000 | |
| Berry, Capital | 18,000 | |
| Other Assets | 200,000 | |
? | ||
| ? | ||
| To record the recognition of the proceeds from the sale of assets at a loss of $60,000, divided among Donald, Chief, and Berry. | ||
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