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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 Total Assets Assets liabilities and Capital $ 55,000 13,000 Liabilities Adams, Capital 230,000 Peters, Capital Blake, Capital $ 298,000 Total Liabilities and Equities $ 46,500 71,500 97,500 82,500 $ 298,000

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 Total Assets Assets liabilities and Capital $ 55,000 13,000 Liabilities Adams, Capital 230,000 Peters, Capital Blake, Capital $ 298,000 Total Liabilities and Equities $ 46,500 71,500 97,500 82,500 $ 298,000

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 2:3:5. When they decide to liquidate, the balance sheet is as follows: Cash Adams, Loan Other Assets Total Assets Assets Balances Adam's loan write-off Sale of assets Payment to creditors Payment to partners Sale of assets Payment to creditors 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: Payment to partners Balances 1. During the first month of liquidation, noncash assets with a book value of $92,500 were sold for $71,000, and $25,500 of the liabilities were paid. 2. During the second month, the remaining noncash assets were sold for $77,200. 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. S $ 55,000 13,000 230,000 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. $ $ 298,000 $ S $ Liabilities Adams, Capital Peters, Capital Blake, Capital Total Liabilities and Equities Cash 55.000 APB PARTNERSHIP Statement of Partnership Realization and Liquidation Installment Liquidation Adams, Loan Noncash Assets Liabilities 0 (13.000) 0 0 Liabilities and Capital 71.000 (25,500) 100,500 $ (13,000) $ 79,500 21,000 $ (13,000) $ 77,200 (21,000) 77,200 S 0 $ 0 0 (13,000) $ 0 77,200 $ (13,000) $ 230,000 $ 0 (92,500) 137,500 0 $ 137,500 $ 137,500 0 0 0 0 S S 46,500 S 0 0 (25.500) 21,000 $ 0 21,000 $ 0 $ 46,500 71,500 (21,000) 97,500 82,500 $ 298,000 0 0 0 S S Adams 71,500 (13,000) (4,300) 0 $ 54,200 (26,700) 27,500 $ $ 0 27,500 S 27,500 S Capital Peters 97,500 0 S (6.450) 0 91,050 $ (49,800) 41,250 $ 0 41,250 $ 41,250 S Blake 82,500 0 (10.750) 0 71,750 (3.000) 68,750 68,750 68,750
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 Total Assets Assets Balances Adam's loan write-off Sale of assets Payment to creditors Payment to partners Sale of assets Payment to creditors 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: Payment to partners Balances 1. During the first month of liquidation, noncash assets with a book value of $92,500 were sold for $71,000, and $25,500 of the liabilities were paid. 2. During the second month, the remaining noncash assets were sold for $77,200. 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. S $ 55,000 13,000 230,000 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. $ $ 298,000 $ S $ Liabilities Adams, Capital Peters, Capital Blake, Capital Total Liabilities and Equities Cash 55.000 APB PARTNERSHIP Statement of Partnership Realization and Liquidation Installment Liquidation Adams, Loan Noncash Assets Liabilities 0 (13.000) 0 0 Liabilities and Capital 71.000 (25,500) 100,500 $ (13,000) $ 79,500 21,000 $ (13,000) $ 77,200 (21,000) 77,200 S 0 $ 0 0 (13,000) $ 0 77,200 $ (13,000) $ 230,000 $ 0 (92,500) 137,500 0 $ 137,500 $ 137,500 0 0 0 0 S S 46,500 S 0 0 (25.500) 21,000 $ 0 21,000 $ 0 $ 46,500 71,500 (21,000) 97,500 82,500 $ 298,000 0 0 0 S S Adams 71,500 (13,000) (4,300) 0 $ 54,200 (26,700) 27,500 $ $ 0 27,500 S 27,500 S Capital Peters 97,500 0 S (6.450) 0 91,050 $ (49,800) 41,250 $ 0 41,250 $ 41,250 S Blake 82,500 0 (10.750) 0 71,750 (3.000) 68,750 68,750 68,750
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