Cash Noncash assets Total assets $ 150,000 280,000 $ 430,000 Liabilities Arch, capital (40%) Bibb, capital (20%) Dao, capital (40%) Total liabilities and capital $ 70,000 130,000 65,000 165,000 $430,000
Cash Noncash assets Total assets $ 150,000 280,000 $ 430,000 Liabilities Arch, capital (40%) Bibb, capital (20%) Dao, capital (40%) Total liabilities and capital $ 70,000 130,000 65,000 165,000 $430,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![The following balance sheet is for a partnership in which the partners have decided to terminate operations and liquidate assets. The partners estimate liquidation expenses will be $17,000.
Cash
Noncash assets
Total assets
$ 150,000
280,000
$ 430,000
Liabilities
Beginning balances
Pay liabilities
Max. liquidation expenses
Max. loss - noncash assets
Initial safe payments
Arch, capital (40%)
130,000
65,000
Bibb, capital (20%)
Dao, capital (40%)
165,000
Total liabilities and capital $430,000
Prepare a proposed schedule of liquidation to carry out a preliminary distribution of partnership assets at the date of termination. (Amounts to be deducted should be entered with a minus
sign.)
$ 70,000
ARCH, BIBB, AND DAO PARTNERSHIP
Proposed Schedule of Liquidation
Date of Termination
Cash
Noncash
Assets
Liabilities
Arch, Capital Bibb, Capital
40%
20%
Dao, Capital
40%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb1e1f7ce-6847-4965-81f8-e638576c5e85%2F1bbdae77-735a-4139-8aea-97b3ca6f327c%2Frvbupk_processed.png&w=3840&q=75)
Transcribed Image Text:The following balance sheet is for a partnership in which the partners have decided to terminate operations and liquidate assets. The partners estimate liquidation expenses will be $17,000.
Cash
Noncash assets
Total assets
$ 150,000
280,000
$ 430,000
Liabilities
Beginning balances
Pay liabilities
Max. liquidation expenses
Max. loss - noncash assets
Initial safe payments
Arch, capital (40%)
130,000
65,000
Bibb, capital (20%)
Dao, capital (40%)
165,000
Total liabilities and capital $430,000
Prepare a proposed schedule of liquidation to carry out a preliminary distribution of partnership assets at the date of termination. (Amounts to be deducted should be entered with a minus
sign.)
$ 70,000
ARCH, BIBB, AND DAO PARTNERSHIP
Proposed Schedule of Liquidation
Date of Termination
Cash
Noncash
Assets
Liabilities
Arch, Capital Bibb, Capital
40%
20%
Dao, Capital
40%
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