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ation schedule-positive capital accounts The ABC partnership reports the following condensed balance sheet: Cash $195,000 Liabilities $279,500 Noncash assets 455,000 Partner A, capital 97,500 Partner B, capital 117,000 Partner C, capital 156,000 $650,000 Total liabilities and partner capital $650,000 Total assets The partners wish to liquidate the partnership. The noncash assets are sold for $325,000 with the loss distributed to the partners in the ratio of 35% : 20%:45% to partner A, B, and C, respectively. Th liabilities are paid in full. Prepare a schedule detailing the liquidation of the assets, repayment of the liabilities, and distribution of the remaining cash to the partners. HINT: Use a negative sign with answers that reduce account balances. Liquidation Schedule of ABC Partnership Capital account, prior to liquidation $ Cash Noncash Assets Liabilities 455.000 $279.500 $ 195.000 $ A -----Capital Accounts----- B с

ation schedule-positive capital accounts The ABC partnership reports the following condensed balance sheet: Cash $195,000 Liabilities $279,500 Noncash assets 455,000 Partner A, capital 97,500 Partner B, capital 117,000 Partner C, capital 156,000 $650,000 Total liabilities and partner capital $650,000 Total assets The partners wish to liquidate the partnership. The noncash assets are sold for $325,000 with the loss distributed to the partners in the ratio of 35% : 20%:45% to partner A, B, and C, respectively. Th liabilities are paid in full. Prepare a schedule detailing the liquidation of the assets, repayment of the liabilities, and distribution of the remaining cash to the partners. HINT: Use a negative sign with answers that reduce account balances. Liquidation Schedule of ABC Partnership Capital account, prior to liquidation $ Cash Noncash Assets Liabilities 455.000 $279.500 $ 195.000 $ A -----Capital Accounts----- B с

FINANCIAL ACCOUNTING
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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Liquidation schedule—positive capital accounts The ABC partnership reports the following condensed balance sheet: Cash Noncash assets 455,000 $279,500 Partner A, capital 97,500 Partner B, capital 117,000 Partner C, capital 156,000 Total assets $650,000 Total liabilities and partner capital $650,000 $195,000 Liabilities The partners wish to liquidate the partnership. The noncash assets are sold for $325,000 with the loss distributed to the partners in the ratio of 35%:20%:45% to partner A, B, and C, respectively. The liabilities are paid in full. Prepare a schedule detailing the liquidation of the assets, repayment of the liabilities, and distribution of the remaining cash to the partners. HINT: Use a negative sign with answers that reduce account balances. Liquidation Schedule of ABC Partnership Capital account, prior to liquidation $ Sale of noncash assets Payment of creditors Distribution to partners Post-liquidation balances $ Cash Noncash Assets Liabilities 195,000 $ 455,000 $ 279,500 $ $ $ $ A -----Capital Accounts----- $ $ B $ $ с с
Transcribed Image Text:Liquidation schedule—positive capital accounts The ABC partnership reports the following condensed balance sheet: Cash Noncash assets 455,000 $279,500 Partner A, capital 97,500 Partner B, capital 117,000 Partner C, capital 156,000 Total assets $650,000 Total liabilities and partner capital $650,000 $195,000 Liabilities The partners wish to liquidate the partnership. The noncash assets are sold for $325,000 with the loss distributed to the partners in the ratio of 35%:20%:45% to partner A, B, and C, respectively. The liabilities are paid in full. Prepare a schedule detailing the liquidation of the assets, repayment of the liabilities, and distribution of the remaining cash to the partners. HINT: Use a negative sign with answers that reduce account balances. Liquidation Schedule of ABC Partnership Capital account, prior to liquidation $ Sale of noncash assets Payment of creditors Distribution to partners Post-liquidation balances $ Cash Noncash Assets Liabilities 195,000 $ 455,000 $ 279,500 $ $ $ $ A -----Capital Accounts----- $ $ B $ $ с с
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