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

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 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 51509703b05dfcc_1 $fill in the blank 51509703b05dfcc_2 $fill in the blank 51509703b05dfcc_3 $fill in the blank 51509703b05dfcc_4 $fill in the blank 51509703b05dfcc_5 $fill in the blank 51509703b05dfcc_6
Sale of assets and division of gain fill in the blank 51509703b05dfcc_7 fill in the blank 51509703b05dfcc_8   fill in the blank 51509703b05dfcc_9 fill in the blank 51509703b05dfcc_10 fill in the blank 51509703b05dfcc_11
Balances after realization $fill in the blank 51509703b05dfcc_12 fill in the blank 51509703b05dfcc_13 $fill in the blank 51509703b05dfcc_14 $fill in the blank 51509703b05dfcc_15 $fill in the blank 51509703b05dfcc_16 $fill in the blank 51509703b05dfcc_17
Payment of liabilities fill in the blank 51509703b05dfcc_18   fill in the blank 51509703b05dfcc_19      
Balances after payment of liabilities $fill in the blank 51509703b05dfcc_20 fill in the blank 51509703b05dfcc_21 fill in the blank 51509703b05dfcc_22 $fill in the blank 51509703b05dfcc_23 $fill in the blank 51509703b05dfcc_24 $fill in the blank 51509703b05dfcc_25
Distribution of cash to partners fill in the blank 51509703b05dfcc_26     fill in the blank 51509703b05dfcc_27 fill in the blank 51509703b05dfcc_28 fill in the blank 51509703b05dfcc_29
Final balances fill in the blank 51509703b05dfcc_30 fill in the blank 51509703b05dfcc_31 fill in the blank 51509703b05dfcc_32 fill in the blank 51509703b05dfcc_33 fill in the blank 51509703b05dfcc_34 fill in the blank 51509703b05dfcc_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 80550bfb0f89fff_1 $fill in the blank 80550bfb0f89fff_2 $fill in the blank 80550bfb0f89fff_3 $fill in the blank 80550bfb0f89fff_4 $fill in the blank 80550bfb0f89fff_5 $fill in the blank 80550bfb0f89fff_6
Sale of assets and division of loss fill in the blank 80550bfb0f89fff_7 fill in the blank 80550bfb0f89fff_8   fill in the blank 80550bfb0f89fff_9 fill in the blank 80550bfb0f89fff_10 fill in the blank 80550bfb0f89fff_11
Balances after realization $fill in the blank 80550bfb0f89fff_12 fill in the blank 80550bfb0f89fff_13 $fill in the blank 80550bfb0f89fff_14 $fill in the blank 80550bfb0f89fff_15 $fill in the blank 80550bfb0f89fff_16 $fill in the blank 80550bfb0f89fff_17
Payment of liabilities fill in the blank 80550bfb0f89fff_18   fill in the blank 80550bfb0f89fff_19      
Balances after payment of liabilities $fill in the blank 80550bfb0f89fff_20 fill in the blank 80550bfb0f89fff_21 fill in the blank 80550bfb0f89fff_22 $fill in the blank 80550bfb0f89fff_23 $fill in the blank 80550bfb0f89fff_24 $fill in the blank 80550bfb0f89fff_25
Receipt of deficiency fill in the blank 80550bfb0f89fff_26       fill in the blank 80550bfb0f89fff_27  
Balances $fill in the blank 80550bfb0f89fff_28 fill in the blank 80550bfb0f89fff_29 fill in the blank 80550bfb0f89fff_30 $fill in the blank 80550bfb0f89fff_31 fill in the blank 80550bfb0f89fff_32 $fill in the blank 80550bfb0f89fff_33
Distribution of cash to partners fill in the blank 80550bfb0f89fff_34     fill in the blank 80550bfb0f89fff_35   fill in the blank 80550bfb0f89fff_36
Final balances
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