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statement of partnership liquidation

statement of partnership liquidation

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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Statement of Partnership Liquidation After closing the accounts on July 1, prior to liquidating the partnership, the capital account balances of Silver, Carillo, and Tingley are $42,900, $60,900, and $27,000, respectively. Cash, noncash assets, and liabilities total $63,900, $112,500, and $45,600, respectively. Between July 1 and July 29, the noncash assets are sold for $89,700, the liabilities are paid, and the remaining cash is distributed to the partners. The partners share net income and loss in the ratio of 3:2:1. Prepare a statement of partnership liquidation for the period July 1-29. Enter any subtractions (balance deficiencies, payments, cash distributions, divisions of loss, sale of assets) as negative numbers using a minus sign. If an amount is zero, enter in "0". Balances before realization Sale of assets and division of loss Balances after realization Cash + Payment of liabilities Balances after payment of liabilities $ Cash distributed to partners Final balances Silver, Carillo, and Tingley Statement of Partnership Liquidation For the Period Ending July 1-29 Noncash Assets = Liabilities + $ Silver (3/6) + Carillo (2/6) + Tingley (1/6)
Transcribed Image Text:Statement of Partnership Liquidation After closing the accounts on July 1, prior to liquidating the partnership, the capital account balances of Silver, Carillo, and Tingley are $42,900, $60,900, and $27,000, respectively. Cash, noncash assets, and liabilities total $63,900, $112,500, and $45,600, respectively. Between July 1 and July 29, the noncash assets are sold for $89,700, the liabilities are paid, and the remaining cash is distributed to the partners. The partners share net income and loss in the ratio of 3:2:1. Prepare a statement of partnership liquidation for the period July 1-29. Enter any subtractions (balance deficiencies, payments, cash distributions, divisions of loss, sale of assets) as negative numbers using a minus sign. If an amount is zero, enter in "0". Balances before realization Sale of assets and division of loss Balances after realization Cash + Payment of liabilities Balances after payment of liabilities $ Cash distributed to partners Final balances Silver, Carillo, and Tingley Statement of Partnership Liquidation For the Period Ending July 1-29 Noncash Assets = Liabilities + $ Silver (3/6) + Carillo (2/6) + Tingley (1/6)
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