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: Cash Adams, Loan Other Assets Assets Liabilities. Adams, Capital Peters, Capital Blake, Capital Total Liabilities and Equities 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. Total Assets. $ 51,000 12,200 222,000 Liabilities and Capital $285,200 $ 45,300 67,100 91,500 81,300 $285,200

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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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:
Cash
Adams, Loan:
Other Assets
Assets
Total Assets
Liabilities
Adams, Capital
Peters, Capital
Blake, Capital
Total Liabilities and Equities
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.
Profit and loss percentages
Preliquidation capital balances
Loan to Adams
Total
Loss absorption potential
Decrease highest LAP to next highest
Adams
$ 51,000
12,200
222,000
$285,200
Decrease LAPs to next highest
Adams
Peters
✪
00
Adams
Loss Absorption Potential
Peters
335,500
(30.500)
$ 305,000
O (142,400)
O
$ 162.600
Answer is not complete.
APB PARTNERSHIP
Cash Distribution Plan
Liabilities and Capital
305,000
$ 305,000
(142,400)
$ 162.600
Blake
162.600
$ 162.600
15
$ 162,600 $
$ 67,100
(12.200)
54,900
Adams
$
20%
(6,100)
48.800
(28,480)
20,320
$ 45,300
67,100
91,500
81,300
$285,200
Capital Accounts
Peters
30 %
S
S
S
91,500
00
91,500
91.500
(42.720)
$ 48,780
$
s
Blake
50 %
81,300
DO
81,300
$81,300
5 81,300
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: Cash Adams, Loan: Other Assets Assets Total Assets Liabilities Adams, Capital Peters, Capital Blake, Capital Total Liabilities and Equities 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. Profit and loss percentages Preliquidation capital balances Loan to Adams Total Loss absorption potential Decrease highest LAP to next highest Adams $ 51,000 12,200 222,000 $285,200 Decrease LAPs to next highest Adams Peters ✪ 00 Adams Loss Absorption Potential Peters 335,500 (30.500) $ 305,000 O (142,400) O $ 162.600 Answer is not complete. APB PARTNERSHIP Cash Distribution Plan Liabilities and Capital 305,000 $ 305,000 (142,400) $ 162.600 Blake 162.600 $ 162.600 15 $ 162,600 $ $ 67,100 (12.200) 54,900 Adams $ 20% (6,100) 48.800 (28,480) 20,320 $ 45,300 67,100 91,500 81,300 $285,200 Capital Accounts Peters 30 % S S S 91,500 00 91,500 91.500 (42.720) $ 48,780 $ s Blake 50 % 81,300 DO 81,300 $81,300 5 81,300
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