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Adams, Peters, and Blake share profits and losses for their APB Partnership in a ratio of 2.3.5. When they decide to liquidate, the balance sheet is as follows: Assets Cash Adams, Loan Other Assets Total Assets $ 54,000 12,800 228,000 $ 294,800 Liabilities and Capital Liabilities Adams, Capital Peters, Capital Blake, Capital Total Liabilities and Equities $ 46,200 70,400 96,000 82,200 $ 294,800 Liquidation expenses are expected to be negligible. No interest accrues on loans with partners after termination of the business During the liquidation process for the APB Partnership, the following events occurred: 1. During the first month of liquidation, noncash assets with a book value of $92,000 were sold for $70,500, and $25,000 of the liabilities were paid. 2. During the second month, the remaining noncash assets were sold for $77,000. The loan receivable from Adams was collected, and the rest of the creditors were paid 3. Cash is distributed to partners at the end of each month

Adams, Peters, and Blake share profits and losses for their APB Partnership in a ratio of 2.3.5. When they decide to liquidate, the balance sheet is as follows: Assets Cash Adams, Loan Other Assets Total Assets $ 54,000 12,800 228,000 $ 294,800 Liabilities and Capital Liabilities Adams, Capital Peters, Capital Blake, Capital Total Liabilities and Equities $ 46,200 70,400 96,000 82,200 $ 294,800 Liquidation expenses are expected to be negligible. No interest accrues on loans with partners after termination of the business During the liquidation process for the APB Partnership, the following events occurred: 1. During the first month of liquidation, noncash assets with a book value of $92,000 were sold for $70,500, and $25,000 of the liabilities were paid. 2. During the second month, the remaining noncash assets were sold for $77,000. The loan receivable from Adams was collected, and the rest of the creditors were paid 3. Cash is distributed to partners at the end of each month

FINANCIAL ACCOUNTING
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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$ Adams, Peters, and Blake share profits and losses for their APB Partnership in a ratio of 23:5. When they decide to liquidate, the balance sheet is as follows: Cash Adams, Loan Other Assets Total Assets Assets $ 54,000 12,800 228,000 $ 294,800 Liabilities and Capital Liabilities Adams, Capital Peters, Capital Blake, Capital Total Liabilities and Equities $ 46,200 70,400 96,000 82,200 $ 294,800 Liquidation expenses are expected to be negligible. No interest accrues on loans with partners after termination of the business During the liquidation process for the APB Partnership, the following events occurred: 1. During the first month of liquidation, noncash assets with a book value of $92,000 were sold for $70,500, and $25,000 of the liabilities were paid 2. During the second month, the remaining noncash assets were sold for $77,000. The loan receivable from Adams was collected, and the rest of the creditors were paid. 3. Cash is distributed to partners at the end of each month. Required: Prepare a statement of partnership realization and liquidation with a schedule of safe payments to partners for the liquidation period. Please follow the practical guidelines when completing this worksheet
Transcribed Image Text:$ Adams, Peters, and Blake share profits and losses for their APB Partnership in a ratio of 23:5. When they decide to liquidate, the balance sheet is as follows: Cash Adams, Loan Other Assets Total Assets Assets $ 54,000 12,800 228,000 $ 294,800 Liabilities and Capital Liabilities Adams, Capital Peters, Capital Blake, Capital Total Liabilities and Equities $ 46,200 70,400 96,000 82,200 $ 294,800 Liquidation expenses are expected to be negligible. No interest accrues on loans with partners after termination of the business During the liquidation process for the APB Partnership, the following events occurred: 1. During the first month of liquidation, noncash assets with a book value of $92,000 were sold for $70,500, and $25,000 of the liabilities were paid 2. During the second month, the remaining noncash assets were sold for $77,000. The loan receivable from Adams was collected, and the rest of the creditors were paid. 3. Cash is distributed to partners at the end of each month. Required: Prepare a statement of partnership realization and liquidation with a schedule of safe payments to partners for the liquidation period. Please follow the practical guidelines when completing this worksheet
Balances Adam's loan write-off Sale of assets Payment to creditors Payment to partners Sale of assets Payment to creditors Payment to partners Balances S Cash Adams, Loan Noncash Assets 5 Show Transcribed Text APB PARTNERSHIP Statement of Partnership Realization and Liquidation Installment Liquidation Safe payment to partners 0 $ 0 $ 0$ 0$ Capital balances, end of first month Potential Loss on assets 0$ 0 $ 0 S 0$ ✓ $ Liabilities $ $ 0$ 0$ 0$ OS U 0$ 0 $ APB PARTNERSHIP Schedule of Safe Payments to Partners Adams 20% 0 $ 05 64,900 $ Adams Peters 30% 0 $ 0$ 0 $ 0$ 88,500 $ 64,900 $ 88,500 $ (64,900) $ (88,500) S Capital Peters Blake 50% 0 $ 05 0$ 05 79,900 79,900 (79,900) Blake 0 0 0
Transcribed Image Text:Balances Adam's loan write-off Sale of assets Payment to creditors Payment to partners Sale of assets Payment to creditors Payment to partners Balances S Cash Adams, Loan Noncash Assets 5 Show Transcribed Text APB PARTNERSHIP Statement of Partnership Realization and Liquidation Installment Liquidation Safe payment to partners 0 $ 0 $ 0$ 0$ Capital balances, end of first month Potential Loss on assets 0$ 0 $ 0 S 0$ ✓ $ Liabilities $ $ 0$ 0$ 0$ OS U 0$ 0 $ APB PARTNERSHIP Schedule of Safe Payments to Partners Adams 20% 0 $ 05 64,900 $ Adams Peters 30% 0 $ 0$ 0 $ 0$ 88,500 $ 64,900 $ 88,500 $ (64,900) $ (88,500) S Capital Peters Blake 50% 0 $ 05 0$ 05 79,900 79,900 (79,900) Blake 0 0 0
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