After closing the accounts on July 1, prior to liquidating the partnership, the capital account balances of Gold, Porter, and Sims are $25,800, $36,900, and $16,200, respectively. Cash, noncash assets, and liabilities total $40,800, $68,100, and $30,000, respectively. Between July 1 and July 29, the noncash assets are sold for $54,300, the liabilities are paid, and the remaining cash is distributed to the partners. The partners share net income and loss in the ratio of 3:2:1. Prepare a statement of partnership liquidation for the period July 1-29. Enter any subtractions (balance deficiencies, payments, cash distributions, divisions of loss, sale of assets) as negative numbers using a minus sign. If an amount is zero, enter in "0". Balances before realization Sale of assets and division of loss Balances after realization Payment of liabilities Balances after payment of liabilities $ Cash distributed to partners Final balances + Cash + Gold, Porter, and Sims Statement of Partnership Liquidation For the Period Ending July 1-29 Noncash Assets= Liabilities + Capital Gold (3/6) + $ Capital Porter (2/6) + Capital Sims (1/6) $
After closing the accounts on July 1, prior to liquidating the partnership, the capital account balances of Gold, Porter, and Sims are $25,800, $36,900, and $16,200, respectively. Cash, noncash assets, and liabilities total $40,800, $68,100, and $30,000, respectively. Between July 1 and July 29, the noncash assets are sold for $54,300, the liabilities are paid, and the remaining cash is distributed to the partners. The partners share net income and loss in the ratio of 3:2:1. Prepare a statement of partnership liquidation for the period July 1-29. Enter any subtractions (balance deficiencies, payments, cash distributions, divisions of loss, sale of assets) as negative numbers using a minus sign. If an amount is zero, enter in "0". Balances before realization Sale of assets and division of loss Balances after realization Payment of liabilities Balances after payment of liabilities $ Cash distributed to partners Final balances + Cash + Gold, Porter, and Sims Statement of Partnership Liquidation For the Period Ending July 1-29 Noncash Assets= Liabilities + Capital Gold (3/6) + $ Capital Porter (2/6) + Capital Sims (1/6) $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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After closing the accounts on July 1, prior to liquidating the partnership, the capital account balances of Gold, Porter, and Sims are $25,800, $36,900, and $16,200,
respectively. Cash, noncash assets, and liabilities total $40,800, $68,100, and $30,000, respectively. Between July 1 and July 29, the noncash assets are sold for $54,300,
the liabilities are paid, and the remaining cash is distributed to the partners. The partners share net income and loss in the ratio of 3:2:1.
Prepare a statement of partnership liquidation for the period July 1-29. Enter any subtractions (balance deficiencies, payments, cash distributions, divisions of loss, sale of
assets) as negative numbers using a minus sign. If an amount is zero, enter in "0".
Balances before realization
Sale of assets and division of loss
Balances after realization
Payment of liabilities
Balances after payment of liabilities
Cash distributed to partners
Final balances
+
Cash +
Gold, Porter, and Sims
Statement of Partnership Liquidation
For the Period Ending July 1-29
Noncash Assets =
Liabilities + Capital Gold (3/6)+ Capital Porter (2/6) + Capital Sims (1/6)
$
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