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 $150,000, the liabilities were paid, and the remaining cash was distributed to the partners.a. Prepare a statement of partnership liquidation. If an amount box does not require an entry, leave it blank or enter "0".Anna, Brian, and ColeStatement of Partnership LiquidationFor Period May 7-30 Cash +Noncash Assets =Liabilities +Capital Anna (3/6) +Capital Brian (2/6) +Capital Cole (1/6)Balances before realization$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$fill in the blank 51509703b05dfcc_6Sale of assets and division of gainfill in the blank 51509703b05dfcc_7fill in the blank 51509703b05dfcc_8 fill in the blank 51509703b05dfcc_9fill in the blank 51509703b05dfcc_10fill in the blank 51509703b05dfcc_11Balances after realization$fill in the blank 51509703b05dfcc_12fill 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_17Payment of liabilitiesfill in the blank 51509703b05dfcc_18 fill in the blank 51509703b05dfcc_19 Balances after payment of liabilities$fill in the blank 51509703b05dfcc_20fill in the blank 51509703b05dfcc_21fill in the blank 51509703b05dfcc_22$fill in the blank 51509703b05dfcc_23$fill in the blank 51509703b05dfcc_24$fill in the blank 51509703b05dfcc_25Distribution of cash to partnersfill in the blank 51509703b05dfcc_26 fill in the blank 51509703b05dfcc_27fill in the blank 51509703b05dfcc_28fill in the blank 51509703b05dfcc_29Final balancesfill in the blank 51509703b05dfcc_30fill in the blank 51509703b05dfcc_31fill in the blank 51509703b05dfcc_32fill in the blank 51509703b05dfcc_33fill in the blank 51509703b05dfcc_34fill in the blank 51509703b05dfcc_35b. Assume the same facts as in (a), except that the noncash assets were sold for $45,000 and any partner with a capital deficiency pays the amount of the deficiency to the partnership. Prepare a statement of partnership liquidation. If an amount box does not require an entry, leave it blank or enter "0".Anna, Brian, and ColeStatement of Partnership LiquidationFor Period May 7-30 Cash +Noncash Assets =Liabilities +Capital Anna (3/6) +Capital Brian (2/6) +Capital Cole (1/6)Balances before realization$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$fill in the blank 80550bfb0f89fff_6Sale of assets and division of lossfill in the blank 80550bfb0f89fff_7fill in the blank 80550bfb0f89fff_8 fill in the blank 80550bfb0f89fff_9fill in the blank 80550bfb0f89fff_10fill in the blank 80550bfb0f89fff_11Balances after realization$fill in the blank 80550bfb0f89fff_12fill 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_17Payment of liabilitiesfill in the blank 80550bfb0f89fff_18 fill in the blank 80550bfb0f89fff_19 Balances after payment of liabilities$fill in the blank 80550bfb0f89fff_20fill in the blank 80550bfb0f89fff_21fill in the blank 80550bfb0f89fff_22$fill in the blank 80550bfb0f89fff_23$fill in the blank 80550bfb0f89fff_24$fill in the blank 80550bfb0f89fff_25Receipt of deficiencyfill in the blank 80550bfb0f89fff_26 fill in the blank 80550bfb0f89fff_27 Balances$fill in the blank 80550bfb0f89fff_28fill in the blank 80550bfb0f89fff_29fill in the blank 80550bfb0f89fff_30$fill in the blank 80550bfb0f89fff_31fill in the blank 80550bfb0f89fff_32$fill in the blank 80550bfb0f89fff_33Distribution of cash to partnersfill in the blank 80550bfb0f89fff_34 fill in the blank 80550bfb0f89fff_35 fill in the blank 80550bfb0f89fff_36Final balances

Dissolution of Partnership Firm means complete end of the relationship between all the partners.All…

Answered: After discontinuing the ordinary…

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 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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