Cam, Andy and Rae are partners in CAR Brokers and share losses in a 3:4:3 ratio, respectively. The balance sheet on December 31, 2023, when they decide to liquidate the business, is as follows:AssetsLiabilities and CapitalCash$1,875,000Accounts Payable$1,000,000Noncash Assets$937,000Cam, Loan312,000 Cam, Capital500,000 Andy, Capital375,000 Rae, Capital625,000Total Assets$2,812,000Total Liabilities & Equities$2,812,000Note:A revaluation was done for non-cash assets valuing them at $1,002,000. The noncash assets were then sold for $800,000.As the accountant for the partnership, how do i prepare a Statement of partnership realization and liquidation?

Partnership means where two or more person comes together to form the business and share profit and…

Answered: Cam, Andy and Rae are partners in CAR…

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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Cam, Andy and Rae are partners in CAR Brokers and share losses in a 3:4:3 ratio, respectively. The balance sheet on December 31, 2023, when they decide to liquidate the business, is as follows:

Assets	Liabilities and Capital
Cash	$1,875,000	Accounts Payable	$1,000,000
Noncash Assets	$937,000	Cam, Loan	312,000
		Cam, Capital	500,000
		Andy, Capital	375,000
		Rae, Capital	625,000
Total Assets	$2,812,000	Total Liabilities & Equities	$2,812,000

Note:

A revaluation was done for non-cash assets valuing them at $1,002,000. The noncash assets were then sold for $800,000.

As the accountant for the partnership, how do i prepare a Statement of partnership realization and liquidation?

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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