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Business
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Liabilities Playa, capital (40%) Bahia, capital (30%) Arco, capital (30%) Total ets are sold for $80,000, liabilities are paid in full, and $15,000 in liquidation expenses are pa $ 33,000 100,000 $ 133,000 $ 50,000 24,000 29,000 30,000 $ 133,000 orchin liquidation to determine the amount of cash oach partner receives as a result of this li

Liabilities Playa, capital (40%) Bahia, capital (30%) Arco, capital (30%) Total ets are sold for $80,000, liabilities are paid in full, and $15,000 in liquidation expenses are pa $ 33,000 100,000 $ 133,000 $ 50,000 24,000 29,000 30,000 $ 133,000 orchin liquidation to determine the amount of cash oach partner receives as a result of this li

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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A partnership has the following balance sheet prior to liquidation (partners' profit and loss ratios are in parentheses): $ 33,000 100,000 Cash Other assets Total $ 133,000 Beginning balances Sale of assets Pay liabilites Pay liquidation expenses Subtotal Distribution to partners Ending balances Liabilities Playa, capital (40%) Bahia, capital (30%) Arco, capital (30%) Total During liquidation, other assets are sold for $80,000, liabilities are paid in full, and $15,000 in liquidation expenses are paid. Required: Prepare a statement of partnership liquidation to determine the amount of cash each partner receives as a result of this liquidation. Note: Amounts to be deducted should be entered with a minus sign. PLAYA, BAHIA, AND ARCO PARTNERSHIP Statement of Partnership Liquidation Other Assets Liabilities $ 50,000 24,000 29,000 30,000 $ 133,000 Cash Playa, Capital Bahia, Capital Arco, Capital (40%) (30%) (30%)
Transcribed Image Text:A partnership has the following balance sheet prior to liquidation (partners' profit and loss ratios are in parentheses): $ 33,000 100,000 Cash Other assets Total $ 133,000 Beginning balances Sale of assets Pay liabilites Pay liquidation expenses Subtotal Distribution to partners Ending balances Liabilities Playa, capital (40%) Bahia, capital (30%) Arco, capital (30%) Total During liquidation, other assets are sold for $80,000, liabilities are paid in full, and $15,000 in liquidation expenses are paid. Required: Prepare a statement of partnership liquidation to determine the amount of cash each partner receives as a result of this liquidation. Note: Amounts to be deducted should be entered with a minus sign. PLAYA, BAHIA, AND ARCO PARTNERSHIP Statement of Partnership Liquidation Other Assets Liabilities $ 50,000 24,000 29,000 30,000 $ 133,000 Cash Playa, Capital Bahia, Capital Arco, Capital (40%) (30%) (30%)
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