Matthews, Mitchell, and Michaels are partners in BG Land Development Company and share losses in a 6:3:1 ratio, respectively. The balance sheet on June 30, 20X1, when they decide to liquidate the business, is as follows: Assets Liabilities and Capital Cash Noncash Assets Total Assets $ 21,000 163,000 $184,000 Accounts Payable Mitchell, Loan Matthews, Capital Mitchell, Capital Michaels, Capital Total Liabilities and Equities The noncash assets are sold for $120,000. Required: a. Prepare a statement of partnership realization and liquidation. $ 33,000 9,000 88,800 39,900 13,300 $184,000
Matthews, Mitchell, and Michaels are partners in BG Land Development Company and share losses in a 6:3:1 ratio, respectively. The balance sheet on June 30, 20X1, when they decide to liquidate the business, is as follows: Assets Liabilities and Capital Cash Noncash Assets Total Assets $ 21,000 163,000 $184,000 Accounts Payable Mitchell, Loan Matthews, Capital Mitchell, Capital Michaels, Capital Total Liabilities and Equities The noncash assets are sold for $120,000. Required: a. Prepare a statement of partnership realization and liquidation. $ 33,000 9,000 88,800 39,900 13,300 $184,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Matthews, Mitchell, and Michaels are partners in BG Land Development Company and share losses in a 6:3:1 ratio, respectively. The
balance sheet on June 30, 20X1, when they decide to liquidate the business, is as follows:
Assets
Cash
Noncash Assets
Total Assets
Balances
Sale of assets
Payment to creditors
Outside Creditors
Mitchell
Payment to partners
Balances
The noncash assets are sold for $120,000.
Required:
a. Prepare a statement of partnership realization and liquidation.
$
$
$ 21,000
163,000
$
$184,000
Cash
0
0
$
0 $
Accounts Payable
Mitchell, Loan
Matthews, Capital
Mitchell, Capital
Michaels, Capital
Total Liabilities and Equities
BG LAND DEVELOPMENT COMPANY
Statement of Partnership Realization and Liquidation
Lump-Sum Distribution
$
Noncash
Assets
Liabilities and Capital
0 $
0
Accounts
Payable
$
0 $
0 $
0
Mitchell
Loan
$
0 $
Prev
0 $
Matthews
0 $
$ 33,000
9,000
88,800
39,900
13,300
$184,000
0 $
1 of 5
Capital Balances
0 $
0 S
0 $
Mitchell
Next >
Michaels
0 $
0 $
0 $
0
0
0
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