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Prepare a statement as of June 30, 20X5, showing how cash will be distributed among partners as it becomes available. Note: Do not round your intermediate calculations. Round your final answers to nearest whole dollar. Profit and loss sharing ratio Preliquidation capital balances Loss absorption potential (LAP) Decrease highest LAP to next highest LAP: Decrease S Decrease LAP to next highest level: Decrease S Decrease V Decrease LAPS by distributing cash in the Profit and Loss sharing ratio $ $ D DSV PARTNERSHIP Cash Distribution Plan June 30, 20X5 S V Loss Absorption Power S 0 Distribution of D's deficit 0 $ % $ Show Transcribed Text Profit and loss ratio Preliquidation balances, June 30 July loss on disposal of assets and payment of liquidation costs July 31 distribution of available cash to partners (Schedule 1) in First layer: August loss on disposal of assets and payment of liquidation costs August 31 distribution of available cash to partners (Schedule 2) Remaining layer of which paid on July 31 Next layer: 0 0 September loss on disposal of assets and payment of liquidation costs < Required A % September 30 distribution of available cash to partners (Schedule 3) Next layer of which paid on August 31 S V Postliquidation balances $ DSV PARTNERSHIP Capital Account Balances June 30, 20X5, through September 30, 20X5 D $ $ $ $ $ $ $ $ V Prepare schedules showing how cash is distributed at the end of July, August, and September 20X5. Note: Do not round your intermediate calculations. Round your final answers to nearest whole dollar. 0 $ 0 % 50 % 100,000 100,000 100,000 100,000 $100,000 100,000 $100,000 100,000 $ 100,000 $ 100,000 $ 100,000 D $ 50 % $ Capital Balances $ Required B > $ $ S 140,000 $ $ 140,000 140,000 30 % 140,000 140,000 S $ 140,000 140,000 30 % 140,000 140,000 $ $ $ $ $ $ 140,000 $ 75,000 $ 140,000 $ V 20 % $ 75,000 $ 75,000 V $ 75,000 20 % 75,000 75,000 75,000 75,000 75,000 75,000 75,000

Prepare a statement as of June 30, 20X5, showing how cash will be distributed among partners as it becomes available. Note: Do not round your intermediate calculations. Round your final answers to nearest whole dollar. Profit and loss sharing ratio Preliquidation capital balances Loss absorption potential (LAP) Decrease highest LAP to next highest LAP: Decrease S Decrease LAP to next highest level: Decrease S Decrease V Decrease LAPS by distributing cash in the Profit and Loss sharing ratio $ $ D DSV PARTNERSHIP Cash Distribution Plan June 30, 20X5 S V Loss Absorption Power S 0 Distribution of D's deficit 0 $ % $ Show Transcribed Text Profit and loss ratio Preliquidation balances, June 30 July loss on disposal of assets and payment of liquidation costs July 31 distribution of available cash to partners (Schedule 1) in First layer: August loss on disposal of assets and payment of liquidation costs August 31 distribution of available cash to partners (Schedule 2) Remaining layer of which paid on July 31 Next layer: 0 0 September loss on disposal of assets and payment of liquidation costs < Required A % September 30 distribution of available cash to partners (Schedule 3) Next layer of which paid on August 31 S V Postliquidation balances $ DSV PARTNERSHIP Capital Account Balances June 30, 20X5, through September 30, 20X5 D $ $ $ $ $ $ $ $ V Prepare schedules showing how cash is distributed at the end of July, August, and September 20X5. Note: Do not round your intermediate calculations. Round your final answers to nearest whole dollar. 0 $ 0 % 50 % 100,000 100,000 100,000 100,000 $100,000 100,000 $100,000 100,000 $ 100,000 $ 100,000 $ 100,000 D $ 50 % $ Capital Balances $ Required B > $ $ S 140,000 $ $ 140,000 140,000 30 % 140,000 140,000 S $ 140,000 140,000 30 % 140,000 140,000 $ $ $ $ $ $ 140,000 $ 75,000 $ 140,000 $ V 20 % $ 75,000 $ 75,000 V $ 75,000 20 % 75,000 75,000 75,000 75,000 75,000 75,000 75,000

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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The DSV Partnership decided to liquidate as of June 30, 20X5. Its balance sheet as of this date follows: DSV PARTNERSHIP Balance Sheet At June 30, 20X5 Assets Cash Accounts Receivable (net) Inventories Property, Plant and Equipment (net) Total Assets Liabilities and Partners' Capital Liabilities: Accounts Payable Partners' Capital: D, Capital S, Capital V, Capital Total Capital Total Liabilities and Capital Additional Information Personal assets Personal liabilities Personal net worth Month July 1. The personal assets (excluding partnership loan and capital interests) and personal liabilities of each partner as of June 30, 20X5, follow: August September $ 100,000 140,000 75,000 D $ 250,000 (270,000) $ (20,000) July August September S $ 450,000 (420,000) $ 30,000 $ 390,000 22,000 55,000 $ 50,000 95,000 75,000 500,000 $ 720,000 2. The DSV Partnership was liquidated during the months of July, August, and September. The assets sold and the amounts realized follow: Assets Sold Inventories Accounts receivable (net) Property, plant and equipment Inventories $ 405,000 315,000 $ 720,000 V $ 300,000 (240,000) $ 60,000 Carrying Amount $ 50,000 60,000 400,000 $ 25,000 10,000 $ 25,000 100,000 Accounts receivable (net) Accounts receivable (net) Property, plant and equipment 3. The accounts payable of $405,000 was paid in July. Assume the following cash amounts were received during the months of July, August, and September from the sale of DSV Partnership's noncash assets: Amount Realized $ 45,000 40,000 305,000 $ 18,000 4,000 $ 10,000 45,000 The partnership wishes to keep $10,000 of cash on hand at the end of both July and August to pay for unexpected liquidation expenses. It paid liquidation expenses of $2,500 at the end of each month, July, August, and September. D, S, and V share profits and losses in the ratio 50:30:20, respectively.
Transcribed Image Text:The DSV Partnership decided to liquidate as of June 30, 20X5. Its balance sheet as of this date follows: DSV PARTNERSHIP Balance Sheet At June 30, 20X5 Assets Cash Accounts Receivable (net) Inventories Property, Plant and Equipment (net) Total Assets Liabilities and Partners' Capital Liabilities: Accounts Payable Partners' Capital: D, Capital S, Capital V, Capital Total Capital Total Liabilities and Capital Additional Information Personal assets Personal liabilities Personal net worth Month July 1. The personal assets (excluding partnership loan and capital interests) and personal liabilities of each partner as of June 30, 20X5, follow: August September $ 100,000 140,000 75,000 D $ 250,000 (270,000) $ (20,000) July August September S $ 450,000 (420,000) $ 30,000 $ 390,000 22,000 55,000 $ 50,000 95,000 75,000 500,000 $ 720,000 2. The DSV Partnership was liquidated during the months of July, August, and September. The assets sold and the amounts realized follow: Assets Sold Inventories Accounts receivable (net) Property, plant and equipment Inventories $ 405,000 315,000 $ 720,000 V $ 300,000 (240,000) $ 60,000 Carrying Amount $ 50,000 60,000 400,000 $ 25,000 10,000 $ 25,000 100,000 Accounts receivable (net) Accounts receivable (net) Property, plant and equipment 3. The accounts payable of $405,000 was paid in July. Assume the following cash amounts were received during the months of July, August, and September from the sale of DSV Partnership's noncash assets: Amount Realized $ 45,000 40,000 305,000 $ 18,000 4,000 $ 10,000 45,000 The partnership wishes to keep $10,000 of cash on hand at the end of both July and August to pay for unexpected liquidation expenses. It paid liquidation expenses of $2,500 at the end of each month, July, August, and September. D, S, and V share profits and losses in the ratio 50:30:20, respectively.
Prepare a statement as of June 30, 20X5, showing how cash will be distributed among partners as it becomes available. Note: Do not round your intermediate calculations. Round your final answers to nearest whole dollar. Profit and loss sharing ratio Preliquidation capital balances Loss absorption potential (LAP) Decrease highest LAP to next highest LAP: Decrease S Decrease LAP to next highest level: Decrease S Decrease V Decrease LAPS by distributing cash in the Profit and Loss sharing ratio $ $ D DSV PARTNERSHIP Cash Distribution Plan June 30, 20X5 Loss Absorption Power S 0 $ 0 Distribution of D's deficit % Show Transcribed Text $ Profit and loss ratio Preliquidation balances, June 30 July loss on disposal of assets and payment of liquidation costs July 31 distribution of available cash to partners (Schedule 1) in First layer: August loss on disposal of assets and payment of liquidation costs 0 $ < Required A August 31 distribution of available cash to partners (Schedule 2) Remaining layer of which paid on July 31 Next layer: S V September loss on disposal of assets and payment of liquidation costs 0 % September 30 distribution of available cash to partners (Schedule 3) Next layer of which paid on August 31 S V Postliquidation balances DSV PARTNERSHIP Capital Account Balances June 30, 20X5, through September 30, 20X5 D $ $ $ $ $ $ $ V $ 0 $ 0 Prepare schedules showing how cash is distributed at the end of July, August, and September 20X5. Note: Do not round your intermediate calculations. Round your final answers to nearest whole dollar. % 100,000 50 % 100,000 100,000 100,000 D $100,000 $ 100,000 50 % $100,000 100,000 Capital Balances S 30 % $ 140,000 S $ 140,000 $ $ Required B > 140,000 30 % $ 140,000 100.000 $ 140,000 $ 140,000 $ $ 140,000 $ 140,000 100,000 $ 140,000 100,000 $ 140,000 $ 140,000 $ $ $ V 20 % $ 75,000 $ 75,000 V $ 75,000 20 % 75,000 75,000 75,000 11.1 75,000 75,000 75,000 75,000 75,000
Transcribed Image Text:Prepare a statement as of June 30, 20X5, showing how cash will be distributed among partners as it becomes available. Note: Do not round your intermediate calculations. Round your final answers to nearest whole dollar. Profit and loss sharing ratio Preliquidation capital balances Loss absorption potential (LAP) Decrease highest LAP to next highest LAP: Decrease S Decrease LAP to next highest level: Decrease S Decrease V Decrease LAPS by distributing cash in the Profit and Loss sharing ratio $ $ D DSV PARTNERSHIP Cash Distribution Plan June 30, 20X5 Loss Absorption Power S 0 $ 0 Distribution of D's deficit % Show Transcribed Text $ Profit and loss ratio Preliquidation balances, June 30 July loss on disposal of assets and payment of liquidation costs July 31 distribution of available cash to partners (Schedule 1) in First layer: August loss on disposal of assets and payment of liquidation costs 0 $ < Required A August 31 distribution of available cash to partners (Schedule 2) Remaining layer of which paid on July 31 Next layer: S V September loss on disposal of assets and payment of liquidation costs 0 % September 30 distribution of available cash to partners (Schedule 3) Next layer of which paid on August 31 S V Postliquidation balances DSV PARTNERSHIP Capital Account Balances June 30, 20X5, through September 30, 20X5 D $ $ $ $ $ $ $ V $ 0 $ 0 Prepare schedules showing how cash is distributed at the end of July, August, and September 20X5. Note: Do not round your intermediate calculations. Round your final answers to nearest whole dollar. % 100,000 50 % 100,000 100,000 100,000 D $100,000 $ 100,000 50 % $100,000 100,000 Capital Balances S 30 % $ 140,000 S $ 140,000 $ $ Required B > 140,000 30 % $ 140,000 100.000 $ 140,000 $ 140,000 $ $ 140,000 $ 140,000 100,000 $ 140,000 100,000 $ 140,000 $ 140,000 $ $ $ V 20 % $ 75,000 $ 75,000 V $ 75,000 20 % 75,000 75,000 75,000 11.1 75,000 75,000 75,000 75,000 75,000
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