The following balance sheet is for a partnership in which the partners have decided to terminate operations and liquidate assets. Th partners estimate liquidation expenses will be $17,000. Cash Noncash assets Total assets $ 150,000 280,000 $ 430,000 Liabilities Arch, capital (40%) Bibb, capital (20%) Dao, capital (40%) Total liabilities and capital Required: Prepare a proposed schedule of liquidation to carry out a preliminary distribution of partnership assets at the date of termination. Note: Amounts to be deducted should be entered with a minus sign. ARCH, BIBB, AND DAO PARTNERSHIP Proposed Schedule of Liquidation Date of Termination Cash Noncash Assets $ 70,000 130,000 65,000 165,000 $ 430,000 Liabilities Arch, Capital Bibb, Capital 40% 20% Dao, Capital 40%

The following balance sheet is for a partnership in which the partners have decided to terminate operations and liquidate assets. Th partners estimate liquidation expenses will be $17,000. Cash Noncash assets Total assets $ 150,000 280,000 $ 430,000 Liabilities Arch, capital (40%) Bibb, capital (20%) Dao, capital (40%) Total liabilities and capital Required: Prepare a proposed schedule of liquidation to carry out a preliminary distribution of partnership assets at the date of termination. Note: Amounts to be deducted should be entered with a minus sign. ARCH, BIBB, AND DAO PARTNERSHIP Proposed Schedule of Liquidation Date of Termination Cash Noncash Assets $ 70,000 130,000 65,000 165,000 $ 430,000 Liabilities Arch, Capital Bibb, Capital 40% 20% Dao, Capital 40%

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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Question

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 $17,000.
Cash
Noncash assets
Total assets
$ 150,000
280,000
Beginning balances
Pay liabilities
Maximum liquidation expenses
Maximum loss - noncash assets
Initial safe payments
$ 430,000
Required:
Prepare a proposed schedule of liquidation to carry out a preliminary distribution of partnership assets at the date of termination.
Note: Amounts to be deducted should be entered with a minus sign.
$
Liabilities
Arch, capital (40%)
Bibb, capital (20%)
Dao, capital (40%)
Total liabilities and capital
ARCH, BIBB, AND DAO PARTNERSHIP
Proposed Schedule of Liquidation
Date of Termination
Noncash
Assets
Cash
150,000
$ 150,000
$
Liabilities
0 $
0
$ 70,000
130,000
65,000
165,000
$ 430,000
Arch, Capital Bibb, Capital
40%
20%
GA
0 $
Dao, Capital
40%
0 $

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