After closing the accounts on July 1, prior to liquidating the partnership, the capital account balances of Silver, Carillo, and Tingley are $26,400, $37,500, and $16,500, respectively. Cash, noncash assets, and liabilities total $39,900, $69,300, and $28,800, respectively. Between July 1 and July 29, the noncash assets are sold for $55,500, the liabilities are paid, and the remaining cash is distributed to the partners. The partners share net income and loss in the ratio of 3:2:1.Prepare a statement of partnership liquidation for the period July 1-29. Enter any subtractions (balance deficiencies, payments, cash distributions, divisions of loss, sale of assets) as negative numbers using a minus sign. If an amount is zero, enter in "0".Silver, Carillo, and TingleyStatement of Partnership LiquidationFor the Period Ending July 1-29 Cash +Noncash Assets =Liabilities +Silver (3/6) +Carillo (2/6) +Tingley (1/6)Balances before realization$fill in the blank 1$fill in the blank 2$fill in the blank 3$fill in the blank 4$fill in the blank 5$fill in the blank 6Sale of assets and division of lossfill in the blank 7fill in the blank 8fill in the blank 9fill in the blank 10fill in the blank 11fill in the blank 12Balances after realization$fill in the blank 13$fill in the blank 14$fill in the blank 15$fill in the blank 16$fill in the blank 17$fill in the blank 18Payment of liabilitiesfill in the blank 19fill in the blank 20fill in the blank 21fill in the blank 22fill in the blank 23fill in the blank 24Balances after payment of liabilities$fill in the blank 25$fill in the blank 26$fill in the blank 27$fill in the blank 28$fill in the blank 29$fill in the blank 30Cash distributed to partnersfill in the blank 31fill in the blank 32fill in the blank 33fill in the blank 34fill in the blank 35fill in the blank 36Final balances$fill in the blank 37$fill in the blank 38$fill in the blank 39$fill in the blank 40$fill in the blank 41$fill in the blank 42

Liquidation of partnership refers to the process of discontinuing the business under the…

Answered: After closing the accounts on July 1,…

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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After closing the accounts on July 1, prior to liquidating the partnership, the capital account balances of Silver, Carillo, and Tingley are $26,400, $37,500, and $16,500, respectively. Cash, noncash assets, and liabilities total $39,900, $69,300, and $28,800, respectively. Between July 1 and July 29, the noncash assets are sold for $55,500, 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".

Silver, Carillo, and TingleyStatement of Partnership LiquidationFor the Period Ending July 1-29

	Cash +	Noncash Assets =	Liabilities +	Silver (3/6) +	Carillo (2/6) +	Tingley (1/6)
Balances before realization	$fill in the blank 1	$fill in the blank 2	$fill in the blank 3	$fill in the blank 4	$fill in the blank 5	$fill in the blank 6
Sale of assets and division of loss	fill in the blank 7	fill in the blank 8	fill in the blank 9	fill in the blank 10	fill in the blank 11	fill in the blank 12
Balances after realization	$fill in the blank 13	$fill in the blank 14	$fill in the blank 15	$fill in the blank 16	$fill in the blank 17	$fill in the blank 18
Payment of liabilities	fill in the blank 19	fill in the blank 20	fill in the blank 21	fill in the blank 22	fill in the blank 23	fill in the blank 24
Balances after payment of liabilities	$fill in the blank 25	$fill in the blank 26	$fill in the blank 27	$fill in the blank 28	$fill in the blank 29	$fill in the blank 30
Cash distributed to partners	fill in the blank 31	fill in the blank 32	fill in the blank 33	fill in the blank 34	fill in the blank 35	fill in the blank 36
Final balances	$fill in the blank 37	$fill in the blank 38	$fill in the blank 39	$fill in the blank 40	$fill in the blank 41	$fill in the blank 42

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

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