Question #7: Due to the fact that the partnership had been unprofitable for the past several years, A, B, C, and D decided to liquidate their partnership. The partners share profits and losses in the ratio of 30:30:20:20, respectively. The following balance sheet was prepared immediately before the liquidation process began: Cash Other Assets Total Assets ABCD A B C D Partnership Balance Sheet $100,000 550,000 $650,000 The personal status of each partner is as follows: Personal Assets $175,000 100,000 400,000 60,000 Liabilities A, Capital B, Capital C, Capital D, Capital OTHER CASH ASSETS LIABILITIES $100,000 $550,000 $450,000 Total Lia & Equities Personal Liabilities $ 120,000 140,000 160,000 70,000 30 A 75,000 (urm) B $450,000 75,000 60,000 40,000 25,000 $450,000 5-5,000 (40,000) = 240,000 The partnership's other assets are sold for $200,000 cash. The partnership operates in a state which has adopted the Uniform Partnership Act. (10,000) Required: A. Complete the following schedule of partnership realization and liquidation. Assume that a partner makes additional contributions to the partnership when appropriate based on their individual status. 20 29 30 B 60,000 C 40,000 D 25,000 (135000) (90,000) (90,000) CAPITAL

Question #7: Due to the fact that the partnership had been unprofitable for the past several years, A, B, C, and D decided to liquidate their partnership. The partners share profits and losses in the ratio of 30:30:20:20, respectively. The following balance sheet was prepared immediately before the liquidation process began: Cash Other Assets Total Assets ABCD A B C D Partnership Balance Sheet $100,000 550,000 $650,000 The personal status of each partner is as follows: Personal Assets $175,000 100,000 400,000 60,000 Liabilities A, Capital B, Capital C, Capital D, Capital OTHER CASH ASSETS LIABILITIES $100,000 $550,000 $450,000 Total Lia & Equities Personal Liabilities $ 120,000 140,000 160,000 70,000 30 A 75,000 (urm) B $450,000 75,000 60,000 40,000 25,000 $450,000 5-5,000 (40,000) = 240,000 The partnership's other assets are sold for $200,000 cash. The partnership operates in a state which has adopted the Uniform Partnership Act. (10,000) Required: A. Complete the following schedule of partnership realization and liquidation. Assume that a partner makes additional contributions to the partnership when appropriate based on their individual status. 20 29 30 B 60,000 C 40,000 D 25,000 (135000) (90,000) (90,000) CAPITAL

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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