The following condensed balance sheet is for the partnership of Hardwick, Saunders, and Ferris, who share profits and losses in the ratio of 4:3:3, respectively: Cash$92,000 Accounts payable$72,000 Other assets 810,000 Ferris, loan 53,000 Hardwick, loan 43,000 Hardwick, capital 370,000 Saunders, capital 230,000 Ferris, capital 220,000 Total assets$945,000 Total liabilities and capital$945,000 The partners decide to liquidate the partnership. Forty percent of the other assets are sold for $155,000. Prepare a proposed schedule of liquidation at this point in time. (Amounts to be deducted should be entered with a minus sign.)

Liquidation of a partnership firm is a process where partners mutually dissolved their partnership…

Answered: Prepare a proposed schedule of…

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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The following condensed balance sheet is for the partnership of Hardwick, Saunders, and Ferris, who share profits and losses in the ratio of 4:3:3, respectively:


Cash	$	92,000	Accounts payable	$	72,000
Other assets		810,000	Ferris, loan		53,000
Hardwick, loan		43,000	Hardwick, capital		370,000
			Saunders, capital		230,000
			Ferris, capital		220,000
Total assets	$	945,000	Total liabilities and capital	$	945,000

The partners decide to liquidate the partnership. Forty percent of the other assets are sold for $155,000. Prepare a proposed schedule of liquidation at this point in time. (Amounts to be deducted should be entered with a minus sign.)

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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