The partners of Grafton Company have decided to liquidate their business. Noncash assets were sold for $115,000. The income ratios of the partners Kale D., Croix D., and Marais K. are 2:3:3, respectively. Complete the following schedule of cash payments for Grafton Company. DO IT! 3a: Partnership Liquidation No Capital Deficiency (Solution) Gafton Company Schedule of Cash

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
The partners of Grafton Company have decided to liquidate their business.
Noncash assets were sold for $115,000. The income ratios of the partners Kale
D., Croix D., and Marais K. are 2:3:3, respectively. Complete the following
schedule of cash payments for Grafton Company. DO IT! 3a: Partnership
Liquidation No Capital Deficiency (Solution) Gafton Company Schedule of Cash
Payments \table [[Item, Cash,+, \table[[Noncash], [Assets]],, Liabilities,, \table [[
Transcribed Image Text:The partners of Grafton Company have decided to liquidate their business. Noncash assets were sold for $115,000. The income ratios of the partners Kale D., Croix D., and Marais K. are 2:3:3, respectively. Complete the following schedule of cash payments for Grafton Company. DO IT! 3a: Partnership Liquidation No Capital Deficiency (Solution) Gafton Company Schedule of Cash Payments \table [[Item, Cash,+, \table[[Noncash], [Assets]],, Liabilities,, \table [[
DO IT! 3a: Partnership Liquidation-
No Capital Deficiency (Solution)
Item
Balances before
liquidation
Sale of noncash
assets and
allocation of gain
New balances
Pay liabilities
New balances
Cash distribution to
partners
Final balances
Cash
+
10,000 +
O
+
+
+
Gafton Company
Schedule of Cash Payments
Noncash
Kale D.,
Croix D.,
Assets = Liabilities + Capital + Capital +
85,000 =
O
||
11
11
||
11
40,000 +
0
+
+
15,000 + 35,000 +
0
+
+
+
O
+
+
+
+
Marais K.,
Capital
5,000
0
Transcribed Image Text:DO IT! 3a: Partnership Liquidation- No Capital Deficiency (Solution) Item Balances before liquidation Sale of noncash assets and allocation of gain New balances Pay liabilities New balances Cash distribution to partners Final balances Cash + 10,000 + O + + + Gafton Company Schedule of Cash Payments Noncash Kale D., Croix D., Assets = Liabilities + Capital + Capital + 85,000 = O || 11 11 || 11 40,000 + 0 + + 15,000 + 35,000 + 0 + + + O + + + + Marais K., Capital 5,000 0
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education