After discontinuing the ordinary business operations and closing the accounts on May 7, the ledger of the partnership of Anna, Brian, and Cole indicated the following: Cash $7,500 Noncash Assets 105,000 Liabilities $27,500 Anna, Capital 45,000 Brian, Capital 15,000 Cole, Capital 25,000 $112,500 $112,500 The partners share net income and losses in the ratio of 3:2:1. Between May 7 and May 30, the noncash assets were sold for $150,000, the liabilities were paid, and the remaining cash was distributed to the partners. a. Prepare a statement of partnership liquidation. If an amount box does not require an entry, leave it blank or enter "0". Anna, Brian, and Cole Statement of Partnership Liquidation For Period May 7-30 Cash + Noncash Assets = Liabilities + Capital Anna (3/6) + Capital Brian (2/6) + Capital Cole (1/6) Balances before realization $fill in the blank 4ec0a4027fc8ffb_1 $fill in the blank 4ec0a4027fc8ffb_2 $fill in the blank 4ec0a4027fc8ffb_3 $fill in the blank 4ec0a4027fc8ffb_4 $fill in the blank 4ec0a4027fc8ffb_5 $fill in the blank 4ec0a4027fc8ffb_6 Sale of assets and division of gain fill in the blank 4ec0a4027fc8ffb_7 fill in the blank 4ec0a4027fc8ffb_8 fill in the blank 4ec0a4027fc8ffb_9 fill in the blank 4ec0a4027fc8ffb_10 fill in the blank 4ec0a4027fc8ffb_11 Balances after realization $fill in the blank 4ec0a4027fc8ffb_12 fill in the blank 4ec0a4027fc8ffb_13 $fill in the blank 4ec0a4027fc8ffb_14 $fill in the blank 4ec0a4027fc8ffb_15 $fill in the blank 4ec0a4027fc8ffb_16 $fill in the blank 4ec0a4027fc8ffb_17 Payment of liabilities fill in the blank 4ec0a4027fc8ffb_18 fill in the blank 4ec0a4027fc8ffb_19 Balances after payment of liabilities $fill in the blank 4ec0a4027fc8ffb_20 fill in the blank 4ec0a4027fc8ffb_21 fill in the blank 4ec0a4027fc8ffb_22 $fill in the blank 4ec0a4027fc8ffb_23 $fill in the blank 4ec0a4027fc8ffb_24 $fill in the blank 4ec0a4027fc8ffb_25 Distribution of cash to partners fill in the blank 4ec0a4027fc8ffb_26 fill in the blank 4ec0a4027fc8ffb_27 fill in the blank 4ec0a4027fc8ffb_28 fill in the blank 4ec0a4027fc8ffb_29 Final balances fill in the blank 4ec0a4027fc8ffb_30 fill in the blank 4ec0a4027fc8ffb_31 fill in the blank 4ec0a4027fc8ffb_32 fill in the blank 4ec0a4027fc8ffb_33 fill in the blank 4ec0a4027fc8ffb_34 fill in the blank 4ec0a4027fc8ffb_35 b. Assume the same facts as in (a), except that the noncash assets were sold for $45,000 and any partner with a capital deficiency pays the amount of the deficiency to the partnership. Prepare a statement of partnership liquidation. If an amount box does not require an entry, leave it blank or enter "0". Anna, Brian, and Cole Statement of Partnership Liquidation For Period May 7-30 Cash + Noncash Assets = Liabilities + Capital Anna (3/6) + Capital Brian (2/6) + Capital Cole (1/6) Balances before realization $fill in the blank 3b9469053065019_1 $fill in the blank 3b9469053065019_2 $fill in the blank 3b9469053065019_3 $fill in the blank 3b9469053065019_4 $fill in the blank 3b9469053065019_5 $fill in the blank 3b9469053065019_6 Sale of assets and division of loss fill in the blank 3b9469053065019_7 fill in the blank 3b9469053065019_8 fill in the blank 3b9469053065019_9 fill in the blank 3b9469053065019_10 fill in the blank 3b9469053065019_11 Balances after realization $fill in the blank 3b9469053065019_12 fill in the blank 3b9469053065019_13 $fill in the blank 3b9469053065019_14 $fill in the blank 3b9469053065019_15 $fill in the blank 3b9469053065019_16 $fill in the blank 3b9469053065019_17 Payment of liabilities fill in the blank 3b9469053065019_18 fill in the blank 3b9469053065019_19 Balances after payment of liabilities $fill in the blank 3b9469053065019_20 fill in the blank 3b9469053065019_21 fill in the blank 3b9469053065019_22 $fill in the blank 3b9469053065019_23 $fill in the blank 3b9469053065019_24 $fill in the blank 3b9469053065019_25 Receipt of deficiency fill in the blank 3b9469053065019_26 fill in the blank 3b9469053065019_27 Balances $fill in the blank 3b9469053065019_28 fill in the blank 3b9469053065019_29 fill in the blank 3b9469053065019_30 $fill in the blank 3b9469053065019_31 fill in the blank 3b9469053065019_32 $fill in the blank 3b9469053065019_33 Distribution of cash to partners fill in the blank 3b9469053065019_34 fill in the blank 3b9469053065019_35 fill in the blank 3b9469053065019_36 Final balances

After discontinuing the ordinary business operations and closing the accounts on May 7, the ledger of the partnership of Anna, Brian, and Cole indicated the following: Cash $7,500 Noncash Assets 105,000 Liabilities $27,500 Anna, Capital 45,000 Brian, Capital 15,000 Cole, Capital 25,000 $112,500 $112,500 The partners share net income and losses in the ratio of 3:2:1. Between May 7 and May 30, the noncash assets were sold for $150,000, the liabilities were paid, and the remaining cash was distributed to the partners. a. Prepare a statement of partnership liquidation. If an amount box does not require an entry, leave it blank or enter "0". Anna, Brian, and Cole Statement of Partnership Liquidation For Period May 7-30 Cash + Noncash Assets = Liabilities + Capital Anna (3/6) + Capital Brian (2/6) + Capital Cole (1/6) Balances before realization $fill in the blank 4ec0a4027fc8ffb_1 $fill in the blank 4ec0a4027fc8ffb_2 $fill in the blank 4ec0a4027fc8ffb_3 $fill in the blank 4ec0a4027fc8ffb_4 $fill in the blank 4ec0a4027fc8ffb_5 $fill in the blank 4ec0a4027fc8ffb_6 Sale of assets and division of gain fill in the blank 4ec0a4027fc8ffb_7 fill in the blank 4ec0a4027fc8ffb_8 fill in the blank 4ec0a4027fc8ffb_9 fill in the blank 4ec0a4027fc8ffb_10 fill in the blank 4ec0a4027fc8ffb_11 Balances after realization $fill in the blank 4ec0a4027fc8ffb_12 fill in the blank 4ec0a4027fc8ffb_13 $fill in the blank 4ec0a4027fc8ffb_14 $fill in the blank 4ec0a4027fc8ffb_15 $fill in the blank 4ec0a4027fc8ffb_16 $fill in the blank 4ec0a4027fc8ffb_17 Payment of liabilities fill in the blank 4ec0a4027fc8ffb_18 fill in the blank 4ec0a4027fc8ffb_19 Balances after payment of liabilities $fill in the blank 4ec0a4027fc8ffb_20 fill in the blank 4ec0a4027fc8ffb_21 fill in the blank 4ec0a4027fc8ffb_22 $fill in the blank 4ec0a4027fc8ffb_23 $fill in the blank 4ec0a4027fc8ffb_24 $fill in the blank 4ec0a4027fc8ffb_25 Distribution of cash to partners fill in the blank 4ec0a4027fc8ffb_26 fill in the blank 4ec0a4027fc8ffb_27 fill in the blank 4ec0a4027fc8ffb_28 fill in the blank 4ec0a4027fc8ffb_29 Final balances fill in the blank 4ec0a4027fc8ffb_30 fill in the blank 4ec0a4027fc8ffb_31 fill in the blank 4ec0a4027fc8ffb_32 fill in the blank 4ec0a4027fc8ffb_33 fill in the blank 4ec0a4027fc8ffb_34 fill in the blank 4ec0a4027fc8ffb_35 b. Assume the same facts as in (a), except that the noncash assets were sold for $45,000 and any partner with a capital deficiency pays the amount of the deficiency to the partnership. Prepare a statement of partnership liquidation. If an amount box does not require an entry, leave it blank or enter "0". Anna, Brian, and Cole Statement of Partnership Liquidation For Period May 7-30 Cash + Noncash Assets = Liabilities + Capital Anna (3/6) + Capital Brian (2/6) + Capital Cole (1/6) Balances before realization $fill in the blank 3b9469053065019_1 $fill in the blank 3b9469053065019_2 $fill in the blank 3b9469053065019_3 $fill in the blank 3b9469053065019_4 $fill in the blank 3b9469053065019_5 $fill in the blank 3b9469053065019_6 Sale of assets and division of loss fill in the blank 3b9469053065019_7 fill in the blank 3b9469053065019_8 fill in the blank 3b9469053065019_9 fill in the blank 3b9469053065019_10 fill in the blank 3b9469053065019_11 Balances after realization $fill in the blank 3b9469053065019_12 fill in the blank 3b9469053065019_13 $fill in the blank 3b9469053065019_14 $fill in the blank 3b9469053065019_15 $fill in the blank 3b9469053065019_16 $fill in the blank 3b9469053065019_17 Payment of liabilities fill in the blank 3b9469053065019_18 fill in the blank 3b9469053065019_19 Balances after payment of liabilities $fill in the blank 3b9469053065019_20 fill in the blank 3b9469053065019_21 fill in the blank 3b9469053065019_22 $fill in the blank 3b9469053065019_23 $fill in the blank 3b9469053065019_24 $fill in the blank 3b9469053065019_25 Receipt of deficiency fill in the blank 3b9469053065019_26 fill in the blank 3b9469053065019_27 Balances $fill in the blank 3b9469053065019_28 fill in the blank 3b9469053065019_29 fill in the blank 3b9469053065019_30 $fill in the blank 3b9469053065019_31 fill in the blank 3b9469053065019_32 $fill in the blank 3b9469053065019_33 Distribution of cash to partners fill in the blank 3b9469053065019_34 fill in the blank 3b9469053065019_35 fill in the blank 3b9469053065019_36 Final balances

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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Question

After discontinuing the ordinary business operations and closing the accounts on May 7, the ledger of the partnership of Anna, Brian, and Cole indicated the following:

Cash	$7,500
Noncash Assets	105,000
Liabilities		$27,500
Anna, Capital		45,000
Brian, Capital		15,000
Cole, Capital		25,000
	$112,500	$112,500

The partners share net income and losses in the ratio of 3:2:1. Between May 7 and May 30, the noncash assets were sold for $150,000, the liabilities were paid, and the remaining cash was distributed to the partners.

a. Prepare a statement of partnership liquidation. If an amount box does not require an entry, leave it blank or enter "0".

Anna, Brian, and Cole
Statement of Partnership Liquidation
For Period May 7-30
	Cash +	Noncash Assets =	Liabilities +	Capital Anna (3/6) +	Capital Brian (2/6) +	Capital Cole (1/6)
Balances before realization	$fill in the blank 4ec0a4027fc8ffb_1	$fill in the blank 4ec0a4027fc8ffb_2	$fill in the blank 4ec0a4027fc8ffb_3	$fill in the blank 4ec0a4027fc8ffb_4	$fill in the blank 4ec0a4027fc8ffb_5	$fill in the blank 4ec0a4027fc8ffb_6
Sale of assets and division of gain	fill in the blank 4ec0a4027fc8ffb_7	fill in the blank 4ec0a4027fc8ffb_8		fill in the blank 4ec0a4027fc8ffb_9	fill in the blank 4ec0a4027fc8ffb_10	fill in the blank 4ec0a4027fc8ffb_11
Balances after realization	$fill in the blank 4ec0a4027fc8ffb_12	fill in the blank 4ec0a4027fc8ffb_13	$fill in the blank 4ec0a4027fc8ffb_14	$fill in the blank 4ec0a4027fc8ffb_15	$fill in the blank 4ec0a4027fc8ffb_16	$fill in the blank 4ec0a4027fc8ffb_17
Payment of liabilities	fill in the blank 4ec0a4027fc8ffb_18		fill in the blank 4ec0a4027fc8ffb_19
Balances after payment of liabilities	$fill in the blank 4ec0a4027fc8ffb_20	fill in the blank 4ec0a4027fc8ffb_21	fill in the blank 4ec0a4027fc8ffb_22	$fill in the blank 4ec0a4027fc8ffb_23	$fill in the blank 4ec0a4027fc8ffb_24	$fill in the blank 4ec0a4027fc8ffb_25
Distribution of cash to partners	fill in the blank 4ec0a4027fc8ffb_26			fill in the blank 4ec0a4027fc8ffb_27	fill in the blank 4ec0a4027fc8ffb_28	fill in the blank 4ec0a4027fc8ffb_29
Final balances	fill in the blank 4ec0a4027fc8ffb_30	fill in the blank 4ec0a4027fc8ffb_31	fill in the blank 4ec0a4027fc8ffb_32	fill in the blank 4ec0a4027fc8ffb_33	fill in the blank 4ec0a4027fc8ffb_34	fill in the blank 4ec0a4027fc8ffb_35

b. Assume the same facts as in (a), except that the noncash assets were sold for $45,000 and any partner with a capital deficiency pays the amount of the deficiency to the partnership. Prepare a statement of partnership liquidation. If an amount box does not require an entry, leave it blank or enter "0".

Anna, Brian, and Cole
Statement of Partnership Liquidation
For Period May 7-30
	Cash +	Noncash Assets =	Liabilities +	Capital Anna (3/6) +	Capital Brian (2/6) +	Capital Cole (1/6)
Balances before realization	$fill in the blank 3b9469053065019_1	$fill in the blank 3b9469053065019_2	$fill in the blank 3b9469053065019_3	$fill in the blank 3b9469053065019_4	$fill in the blank 3b9469053065019_5	$fill in the blank 3b9469053065019_6
Sale of assets and division of loss	fill in the blank 3b9469053065019_7	fill in the blank 3b9469053065019_8		fill in the blank 3b9469053065019_9	fill in the blank 3b9469053065019_10	fill in the blank 3b9469053065019_11
Balances after realization	$fill in the blank 3b9469053065019_12	fill in the blank 3b9469053065019_13	$fill in the blank 3b9469053065019_14	$fill in the blank 3b9469053065019_15	$fill in the blank 3b9469053065019_16	$fill in the blank 3b9469053065019_17
Payment of liabilities	fill in the blank 3b9469053065019_18		fill in the blank 3b9469053065019_19
Balances after payment of liabilities	$fill in the blank 3b9469053065019_20	fill in the blank 3b9469053065019_21	fill in the blank 3b9469053065019_22	$fill in the blank 3b9469053065019_23	$fill in the blank 3b9469053065019_24	$fill in the blank 3b9469053065019_25
Receipt of deficiency	fill in the blank 3b9469053065019_26				fill in the blank 3b9469053065019_27
Balances	$fill in the blank 3b9469053065019_28	fill in the blank 3b9469053065019_29	fill in the blank 3b9469053065019_30	$fill in the blank 3b9469053065019_31	fill in the blank 3b9469053065019_32	$fill in the blank 3b9469053065019_33
Distribution of cash to partners	fill in the blank 3b9469053065019_34			fill in the blank 3b9469053065019_35		fill in the blank 3b9469053065019_36
Final balances

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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