A4 The following condensed balance sheet is for the partnership of Hardwick, Saunders, and Ferris, who share profits and losses in theratio of 4:3:3, respectively:CashOther assetsHardwick, loanTotal assets$ 84,000 Accounts payableFerris, loan770,00035,000Hardwick, capitalSaunders, capitalFerris, capitalBeginning balancesSold assets$889,000Total liabilities and capitalAdjusted balancesMax loss on remaining noncash assetsPaid liabilitiesSafe paymentsThe partners decide to liquidate the partnership. Forty percent of the other assets are sold for $250,000. Prepare a proposedschedule of liquidation at this point in time. (Amounts to be deducted should be entered with a minus sign.)HARDWICK, SAUNDERS, AND FERRISProposed Schedule of LiquidationCashOtherAssets0 S0 $AccountsPayable0 $$184,00045,000290,0000 $190,000180,000$889,000Hardwick,Loan andCapital0$0 $Saunders,Capital050 $Ferris, Loan& Capital0 S0$

Liquidation is the process of closing a business and distributing its assets to claimants in accounting.If the partnership chooses to liquidate, its assets are sold, its debts are settled, and any money that is left behind is dispersed to the partners in proportion to their capital account balances. If a partner's capital account has a negative balance, that partner must pay the partnership the negative balance.HARDWICK,SALUNDERS AND FERRIS Proposed Schedule of LiquidationCashNon CashLiabilitiesHardwick Loan & CapitalCapital SaundersFerris, Loan & CapitalOpening balances84000770000184000255000190000225000Sold Assets250000-308000-23200-17400-17400Adjusted Balance334000462000184000231800172600207600Maximum loss on-462000-184800-138600-138600the remaining non-Cash assetsPaid Liabilities-184000-184000Safe Payments15000000470003400069000CashNon CashCapital HardwickCapital SaundersCapital FerrisSold Assets $ 250,000 ($770,000 x 0.40) ($308,000 - $250,000= $58,000 x 0.40) = -23200 ($308,000 - $250,000= $58,000 x 0.30) = -17,400 ($308,000 - $250,000= $58,000 x 0.30) = -17,400Maximum loss on the remaining non-Cash assets $ -4,62,000 ($462,000 x 0.40) = $ -184,800 ($462,000 x 0.30) = $-138,600 ($462,000 x 0.30) =$-138,600Proposed Schedule of Liquidation HARDWICK,SALUNDERS AND FERRIS Proposed Schedule of LiquidationCashNon CashLiabilitiesHardwick Loan & CapitalCapital SaundersFerris, Loan & CapitalOpening balances84000770000184000255000190000225000Sold Assets250000-308000-23200-17400-17400Adjusted Balance334000462000184000231800172600207600Maximum loss on-462000-184800-138600-138600the remaining non-Cash assetsPaid Liabilities-184000-184000Safe Payments15000000470003400069000

Business

Accounting

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 Other assets Hardwick, loan Total assets $ 84,000 770,000 35,000 $889,000 Accounts payable Ferris, loan Hardwick, capital Saunders, capital Ferris, capital Total liabilities and capital $184,000 45,000 290,000 190,000 180,000 $889,000 The partners decide to liquidate the partnership. Forty percent of the other assets are sold for $250,000. Prepare a proposed schedule of liquidation at this point in time. (Amounts to be deducted should be entered with a minus sign.)

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 Other assets Hardwick, loan Total assets $ 84,000 770,000 35,000 $889,000 Accounts payable Ferris, loan Hardwick, capital Saunders, capital Ferris, capital Total liabilities and capital $184,000 45,000 290,000 190,000 180,000 $889,000 The partners decide to liquidate the partnership. Forty percent of the other assets are sold for $250,000. Prepare a proposed schedule of liquidation at this point in time. (Amounts to be deducted should be entered with a minus sign.)

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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