E 17-3 Liquidation—Cash distribution computation, safe payments schedule Fed, Ela, and Luc have decided to liquidate their partnership. Account balances on January 1, 2016, are as follows: Cash $160,000 Accounts payable $60,000 Other assets 180,000 Fed capital (30%) 110,000 $340,000 Ela capital (30%) 50,000 Luc capital (40%) 120,000 $340,000 The partners agree to keep a $30,000 contingency fund and to distribute available cash immediately. Required Determine the amount of cash that should be paid to each partner.
E 17-3 Liquidation—Cash distribution computation, safe payments schedule Fed, Ela, and Luc have decided to liquidate their partnership. Account balances on January 1, 2016, are as follows: Cash $160,000 Accounts payable $60,000 Other assets 180,000 Fed capital (30%) 110,000 $340,000 Ela capital (30%) 50,000 Luc capital (40%) 120,000 $340,000 The partners agree to keep a $30,000 contingency fund and to distribute available cash immediately. Required Determine the amount of cash that should be paid to each partner.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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E 17-3 Liquidation—Cash distribution computation, safe payments schedule
Fed, Ela, and Luc have decided to liquidate their partnership. Account balances on January 1, 2016, are as follows:
|
Cash |
$160,000 |
Accounts payable |
$60,000 |
|
Other assets |
180,000 |
Fed capital (30%) |
110,000 |
|
|
$340,000 |
Ela capital (30%) |
50,000 |
|
|
|
Luc capital (40%) |
120,000 |
|
|
|
|
$340,000 |
The partners agree to keep a $30,000 contingency fund and to distribute available cash immediately.
Required
Determine the amount of cash that should be paid to each partner.
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