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The following balance sheet is for a partnership in which the partners have decided to terminate operations and liquidate assets. The partners estimate liquidation expenses will be $10,000. Cash Noncash assets $ 130,000 290,000 Liabilities Arch, capital (40%) Bibb, capital (20%) $ 70,000 130,000 Dao, capital (40%) 65,000 155,000 Total assets $420,000 Total liabilities and capital $420,000

The following balance sheet is for a partnership in which the partners have decided to terminate operations and liquidate assets. The partners estimate liquidation expenses will be $10,000. Cash Noncash assets $ 130,000 290,000 Liabilities Arch, capital (40%) Bibb, capital (20%) $ 70,000 130,000 Dao, capital (40%) 65,000 155,000 Total assets $420,000 Total liabilities and capital $420,000

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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Problem 15-20 (Algo) (LO 15-6) The following balance sheet is for a partnership in which the partners have decided to terminate operations and liquidate assets. The partners estimate liquidation expenses will be $10,000. Cash Noncash assets $ 130,000 290,000 Liabilities $ 70,000 Arch, capital (40%) Bibb, capital (20%) 130,000 65,000 Dao, capital (40%) 155,000 Total assets $420,000 Total liabilities and capital $420,000 Prepare a proposed schedule of liquidation to carry out a preliminary distribution of partnership assets at the date of termination. (Amounts to be deducted should be entered with a minus sign.) ARCH, BIBB, AND DAO PARTNERSHIP Proposed Schedule of Liquidation Date of Termination Noncash Cash Liabilities Assets Arch, Capital Bibb, Capital Dao, Capital 40% 20% 40% Beginning balances Pay liabilities Max. liquidation expenses Max. loss noncash assets Initial safe payments $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Transcribed Image Text:Problem 15-20 (Algo) (LO 15-6) The following balance sheet is for a partnership in which the partners have decided to terminate operations and liquidate assets. The partners estimate liquidation expenses will be $10,000. Cash Noncash assets $ 130,000 290,000 Liabilities $ 70,000 Arch, capital (40%) Bibb, capital (20%) 130,000 65,000 Dao, capital (40%) 155,000 Total assets $420,000 Total liabilities and capital $420,000 Prepare a proposed schedule of liquidation to carry out a preliminary distribution of partnership assets at the date of termination. (Amounts to be deducted should be entered with a minus sign.) ARCH, BIBB, AND DAO PARTNERSHIP Proposed Schedule of Liquidation Date of Termination Noncash Cash Liabilities Assets Arch, Capital Bibb, Capital Dao, Capital 40% 20% 40% Beginning balances Pay liabilities Max. liquidation expenses Max. loss noncash assets Initial safe payments $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
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