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 Liabilities and Capital Cash $ 39,000 Liabilities $ 29,800 Adams, Loan 13,200 Adams, Capital 72,600 Other Assets 232,000 Peters, Capital 99,000 Blake, Capital 82,800 Total Assets $284,200 Total Liabilities & Equities $284,200 Liquidation expenses are expected to be negligible. No Interest accrues on loans with partners after termination of the business. Required: Prepare a cash distribution plan for the APB Partnership. Please follow the practical guidelines when completing this worksheet APB PARTNERSHIP Cash Distribution Plan Loss Absorption Potential Adams Peters Blake Adams Capital Accounts Peters Blake Profit and loss percentages Preliquidation capital balances Loan to Adams Total Loss absorption potential Decrease highest LAP to next highest Decrease LAP's to next highest
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 Liabilities and Capital Cash $ 39,000 Liabilities $ 29,800 Adams, Loan 13,200 Adams, Capital 72,600 Other Assets 232,000 Peters, Capital 99,000 Blake, Capital 82,800 Total Assets $284,200 Total Liabilities & Equities $284,200 Liquidation expenses are expected to be negligible. No Interest accrues on loans with partners after termination of the business. Required: Prepare a cash distribution plan for the APB Partnership. Please follow the practical guidelines when completing this worksheet APB PARTNERSHIP Cash Distribution Plan Loss Absorption Potential Adams Peters Blake Adams Capital Accounts Peters Blake Profit and loss percentages Preliquidation capital balances Loan to Adams Total Loss absorption potential Decrease highest LAP to next highest Decrease LAP's to next highest
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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
Liabilities and Capital
Cash
$ 39,000
Liabilities
$ 29,800
Adams, Loan
13,200
Adams, Capital
72,600
Other Assets
232,000
Peters, Capital
99,000
Blake, Capital
82,800
Total Assets
$284,200 Total Liabilities & Equities
$284,200
Liquidation expenses are expected to be negligible. No Interest accrues on loans with partners after termination of the business.
Required:
Prepare a cash distribution plan for the APB Partnership. Please follow the practical guidelines when completing this worksheet
APB PARTNERSHIP
Cash Distribution Plan
Loss Absorption Potential
Adams
Peters
Blake
Adams
Capital Accounts
Peters
Blake
Profit and loss percentages
Preliquidation capital balances
Loan to Adams
Total
Loss absorption potential
Decrease highest LAP to next highest
Decrease LAP's to next highest
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