2. Grouse, Flicker, and Partridge are partners sharing profits and losses 20/40/40 respectively. Their balance sheet is below. Cash $200,000 Payables to Creditors $300,000 Receivable from Grouse 50,000 Loan to Partridge, 10,000 Receivable from Flicker 20,000 Grouse, Capital 240,000 Property & Equipment 480,000 Flicker, Capital 250,000 Goodwill 100,000 Partridge, Capital 50,000 $850,000 $850,000 The business is doing poorly, and they decided to liquidate. As such, the goodwill is non-existent. The goodwill was recorded when Flicker entered the business and was put entirely into Flicker's capital. The non-cash assets were sold for $200,000, and there are $20,000 of liquidation expenses. All partners are personally insolvent. Prepare a liqudation schedule showing any cash available to the partners.
2. Grouse, Flicker, and Partridge are partners sharing profits and losses 20/40/40 respectively. Their balance sheet is below. Cash $200,000 Payables to Creditors $300,000 Receivable from Grouse 50,000 Loan to Partridge, 10,000 Receivable from Flicker 20,000 Grouse, Capital 240,000 Property & Equipment 480,000 Flicker, Capital 250,000 Goodwill 100,000 Partridge, Capital 50,000 $850,000 $850,000 The business is doing poorly, and they decided to liquidate. As such, the goodwill is non-existent. The goodwill was recorded when Flicker entered the business and was put entirely into Flicker's capital. The non-cash assets were sold for $200,000, and there are $20,000 of liquidation expenses. All partners are personally insolvent. Prepare a liqudation schedule showing any cash available to the partners.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
2.
| Grouse, Flicker, and Partridge are partners sharing |
|||||||||
| Their |
|||||||||
| Cash | $200,000 | Payables to Creditors | $300,000 | ||||||
| Receivable from Grouse | 50,000 | Loan to Partridge, | 10,000 | ||||||
| Receivable from Flicker | 20,000 | Grouse, Capital | 240,000 | ||||||
| Property & Equipment | 480,000 | Flicker, Capital | 250,000 | ||||||
| 100,000 | Partridge, Capital | 50,000 | |||||||
| $850,000 | $850,000 | ||||||||
| The business is doing poorly, and they decided to liquidate. As such, the goodwill is non-existent. | |||||||||
| The goodwill was recorded when Flicker entered the business and was put entirely into Flicker's capital. | |||||||||
| The non-cash assets were sold for $200,000, and there are $20,000 of liquidation expenses. | |||||||||
| All partners are personally insolvent. | |||||||||
| Prepare a liqudation schedule showing any cash available to the partners. |
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education