A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses aredivided on a 4:3:2:1 basis, respectively. Capital balances at the current time areBell, capitalHardy, capitalDennard, capitalSuddath, capitalBell's creditors have filed a $31,000 claim against the partnership's assets. The partnership currently holds assets of $400,000 andliabilities of $158,000. An independent appraiser indicates that the assets can be sold for $240,000.$ 76,00066,00010,00090,000Required:Prepare a statement of partnership liquidation to determine the amount of cash that Bell would receive from the sale of partnershipassets.Note: Amounts to be deducted should be entered with a minus sign.BalancesSale of assetsSubtotalPay liabilitiesSubtotalAllocate deficitSubtotalDistribute cashEnding balancesCashBELL, HARDY, DENNARD, AND SUDDATH PARTNERSHIPStatement of Partnership Liquidation (Hypothetical)AssetsLiabilitiesBell, Capital Hardy, Capital40%30%Dennard,Capital 20%Suddath,Capital 10%

According to the question given, we need to prepare the statement of liquidation.Partnership…

A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are Bell, capital Hardy, capital Dennard, capital Suddath, capital $ 76,000 66,000 10,000 90,000 Bell's creditors have filed a $31,000 claim against the partnership's assets. The partnership currently holds assets of $400,000 and iabilities of $158,000. An independent appraiser indicates that the assets can be sold for $240,000. Required: Prepare a statement of partnership liquidation to determine the amount of cash that Bell would receive from the sale of partnership assets.

A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are Bell, capital Hardy, capital Dennard, capital Suddath, capital $ 76,000 66,000 10,000 90,000 Bell's creditors have filed a $31,000 claim against the partnership's assets. The partnership currently holds assets of $400,000 and iabilities of $158,000. An independent appraiser indicates that the assets can be sold for $240,000. Required: Prepare a statement of partnership liquidation to determine the amount of cash that Bell would receive from the sale of partnership assets.

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter21: Partnerships

Section: Chapter Questions

Problem 11BCRQ

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A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are Bell, capital $ 106,000 Hardy, capital 91,000 Dennard, capital 12,000 Suddath, capital 102,000 Bell’s creditors have filed a $43,000 claim against the partnership’s assets. The partnership currently holds assets of $520,000 and liabilities of $209,000. An independent appraiser indicates that the assets can be sold for $300,000. Required: Prepare a statement of partnership liquidation to determine the amount of cash that Bell would receive from the sale of partnership assets. Note: Amounts to be deducted should be entered with a minus sign
A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are Bell, capital $ 111,000 Hardy, capital 93,000 Dennard, capital 10,000 Suddath, capital 104,000 Bell’s creditors have filed a $45,000 claim against the partnership’s assets. The partnership currently holds assets of $540,000 and liabilities of $222,000. If the assets can be sold for $310,000, what is the minimum amount that Bell’s creditors would receive? Multiple Choice $1,000 $4,600 $0 $19,000
A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are Bell, capital $ 108,500 Hardy, capital 92,000 Dennard, capital 11,000 Suddath, capital 103,000 Bell’s creditors have filed a $44,000 claim against the partnership’s assets. The partnership currently holds assets of $530,000 and liabilities of $215,500. If the assets can be sold for $305,000, what is the minimum amount that Bell’s creditors would receive?
A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are Bell's creditors have filed a $43,000 claim against the partnership's assets. The partnership currently holds assets of $520,000 and liabilities of $209,000. An independent appraiser indicates that the assets can be sold for $300,000.
A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are Bell, capital Hardy, capital Dennard, capital Suddath, capital $ 50,000 56,000 14,000 80,000 Bell's creditors have filed a $21,000 claim against the partnership's assets. The partnership currently holds assets of $300,000 and liabilities of $100,000. An independent appraiser indicates that the assets can be sold for $190,000. Required: Prepare a statement of partnership liquidation to determine the amount of cash that Bell would receive from the sale of partnership assets. Note: Amounts to be deducted should be entered with a minus sign. BELL, HARDY, DENNARD, AND SUDDATH PARTNERSHIP Statement of Partnership Liquidation (Hypothetical) Cash Assets Liabilities Bell, Capital Hardy, Capital 40% 30% Dennard, Capital 20% Suddath, Capital 10% Balances Sale of assets Subtotal $ 0 0…
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