Advanced Accounting
14th Edition
ISBN: 9781260247824
Author: Joe Ben Hoyle, Thomas F. Schaefer, Timothy S. Doupnik
Publisher: RENT MCG
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Chapter 15, Problem 16P
To determine
Prepare a proposed schedule of liquidation at this point in time.
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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
$
92,000
Accounts payable
$
72,000
Other assets
810,000
Ferris, loan
53,000
Hardwick, loan
43,000
Hardwick, capital
370,000
Saunders, capital
230,000
Ferris, capital
220,000
Total assets
$
945,000
Total liabilities and capital
$
945,000
The partners decide to liquidate the partnership. Forty percent of the other assets are sold for $155,000. 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
$
91,000
Accounts payable
$
96,000
Other assets
805,000
Ferris, loan
52,000
Hardwick, loan
42,000
Hardwick, capital
360,000
Saunders, capital
220,000
Ferris, capital
210,000
Total assets
$
938,000
Total liabilities and capital
$
938,000
The partners decide to liquidate the partnership. Fifty percent of the other assets are sold for $165,000. Prepare a proposed schedule of liquidation at this point in time.
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
$ 89,000
Accounts payable
Ferris, loan
Hardwick, capital
Saunders, capital
Ferris, capital
$144,000
Other assets
50,000
340,000
200,000
190,000
795,000
40,000
Hardwick, loan
Total assets
$924,000
Total liabilities and capital
$924,000
The partners decide to liquidate the partnership. Fifty percent of the other assets are sold for $225,000. Prepare a proposed schedule
of liquidation at this point in time. (Amounts to be deducted should be entered with a minus sign.)
HARDWICK, SAUNDERS, AND FERRIS
Proposed Schedule of Liquidation
Hardwick,
Loan and
Capital
Other
Saunders, Ferris, Loan
Capital
Accounts
Cash
Assets
Payable
& Capital
Beginning balances
Sold assets
Adjusted balances
Max loss on remaining noncash assets
$ 89,000
225,000
$ 314,000
Paid liabilities
Safe payments
$ 314,000
Chapter 15 Solutions
Advanced Accounting
Ch. 15 - Prob. 1QCh. 15 - Prob. 2QCh. 15 - Prob. 3QCh. 15 - Prob. 4QCh. 15 - What is the purpose of a statement of liquidation?...Ch. 15 - Prob. 1PCh. 15 - Prob. 2PCh. 15 - Prob. 3PCh. 15 - Prob. 4PCh. 15 - A partnership is considering possible liquidation...
Ch. 15 - What is a predistribution plan? a. A list of the...Ch. 15 - Prob. 7PCh. 15 - Prob. 8PCh. 15 - Prob. 9PCh. 15 - Prob. 10PCh. 15 - Prob. 11PCh. 15 - Prob. 12PCh. 15 - Prob. 13PCh. 15 - Prob. 14PCh. 15 - Prob. 15PCh. 15 - Prob. 16PCh. 15 - Prob. 17PCh. 15 - Prob. 18PCh. 15 - Prob. 25PCh. 15 - Prob. 26PCh. 15 - March, April, and May have been in partnership for...Ch. 15 - Prob. 28PCh. 15 - Prob. 29P
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