KITCHENS JUST FOR YOU Balance Sheet September 1, 20X9 Assets Cash 6,000 $ 39,000 Accounts Payable Receivables 68,000 Connie, Loan 14,000 Terry, Loan 8,000 Terry, Capital 11,500 (30%) Inventory 48,000 Phyllis, Capital 37,000 (60%) Goodwill 22,000 50,500 Connie, Capital (10%) Total Assets $ 152,000 $152,000 Total Liabilities & Equities Connie's loan was for working capital; the loan to Terry was for his unexpected personal medical bills. During September 20X9, the first month of liquidation, the partnership collected $43,000 in receivables and decided to write off $14,000 of the remaining receivables. Sales of one-half of the book value of the inventory realized a loss of $6,000. The partners estimate that the costs of liquidating the business (newspaper ads, signs, etc.), are expected to be $6,000 for the remainder of the liquidation process. Required: Prepare a schedule of safe payments to partners as of September 30, 20X9, to show how the available cash should be distributed to the partners. Please follow the practical guidelines when completing this worksheet. Liabilities and Equities $
KITCHENS JUST FOR YOU Balance Sheet September 1, 20X9 Assets Cash 6,000 $ 39,000 Accounts Payable Receivables 68,000 Connie, Loan 14,000 Terry, Loan 8,000 Terry, Capital 11,500 (30%) Inventory 48,000 Phyllis, Capital 37,000 (60%) Goodwill 22,000 50,500 Connie, Capital (10%) Total Assets $ 152,000 $152,000 Total Liabilities & Equities Connie's loan was for working capital; the loan to Terry was for his unexpected personal medical bills. During September 20X9, the first month of liquidation, the partnership collected $43,000 in receivables and decided to write off $14,000 of the remaining receivables. Sales of one-half of the book value of the inventory realized a loss of $6,000. The partners estimate that the costs of liquidating the business (newspaper ads, signs, etc.), are expected to be $6,000 for the remainder of the liquidation process. Required: Prepare a schedule of safe payments to partners as of September 30, 20X9, to show how the available cash should be distributed to the partners. Please follow the practical guidelines when completing this worksheet. Liabilities and Equities $
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter1: Introductin To Taxation
Section: Chapter Questions
Problem 9P
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