ADVANCED FINANCIAL ACCOUNTING IA
12th Edition
ISBN: 9781260545081
Author: Christensen
Publisher: MCG
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Chapter 16, Problem 16.2C
To determine
Concept introduction: Installment liquidation is carried out in several stages, and payments are made to the partners during the liquidation process periodically, to fulfill the needs of partners for personal purposes. In order to get a better price of assets to be sold installment liquidations take place over a stretched period. It involves the distribution of cash to partners before complete liquidation of assets occurs, they are two methods for ensuring fairness and equality in making cash distributions (1) safe payment schedule and (2) cash distribution plan.
Cash distribution analysis, and the advice to be given in the given case.
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Adams, Peters, and Blake share profits and losses for their APB Partnership in a ratio of 2:3:5. When they decide to liquidate, the
balance sheet is as follows:
Cash
Adams, Loan:
Other Assets
Assets
Total Assets
Liabilities
Adams, Capital
Peters, Capital
Blake, Capital
Total Liabilities and Equities
Liquidation expenses are expected to be negligible. No interest accrues on loans with partners after termination of the business.
Required:
Prepare a cash distribution plan for the APB Partnership. Please follow the practical guidelines when completing this worksheet.
Profit and loss percentages
Preliquidation capital balances
Loan to Adams
Total
Loss absorption potential
Decrease highest LAP to next highest
Adams
$ 51,000
12,200
222,000
$285,200
Decrease LAPs to next highest
Adams
Peters
✪
00
Adams
Loss Absorption Potential
Peters
335,500
(30.500)
$ 305,000
O (142,400)
O
$ 162.600
Answer is not complete.
APB PARTNERSHIP
Cash Distribution Plan
Liabilities and Capital
305,000
$ 305,000…
Please help me
Chapter 16 Solutions
ADVANCED FINANCIAL ACCOUNTING IA
Ch. 16 - What are the major causes of a dissolution? What...Ch. 16 - Prob. 16.2QCh. 16 - Prob. 16.3QCh. 16 - Prob. 16.4QCh. 16 - Contrast a lump-sum liquidation with an...Ch. 16 - Prob. 16.6QCh. 16 - Prob. 16.7QCh. 16 - Prob. 16.8QCh. 16 - Prob. 16.9QCh. 16 - Prob. 16.10Q
Ch. 16 - Prob. 16.11QCh. 16 - The installment liquidation process uses a...Ch. 16 - Prob. 16.13QCh. 16 - Prob. 16.14QCh. 16 - Prob. 16.15QCh. 16 - Cash Distributions to Partners Analysis The...Ch. 16 - Prob. 16.2CCh. 16 - Prob. 16.3CCh. 16 - Sharing Losses during Liquidation Research Hiller,...Ch. 16 - Prob. 16.1.1ECh. 16 - Prob. 16.1.2ECh. 16 - Prob. 16.1.3ECh. 16 - Prob. 16.1.4ECh. 16 - Prob. 16.1.5ECh. 16 - Prob. 16.1.6ECh. 16 - Prob. 16.1.7ECh. 16 - Prob. 16.2.1ECh. 16 - Prob. 16.2.2ECh. 16 - Prob. 16.2.3ECh. 16 - Prob. 16.2.4ECh. 16 - Prob. 16.2.5ECh. 16 - Prob. 16.2.6ECh. 16 - Prob. 16.3ECh. 16 - Prob. 16.4ECh. 16 - Prob. 16.5ECh. 16 - Prob. 16.6ECh. 16 - Prob. 16.7ECh. 16 - Prob. 16.8ECh. 16 - Confirmation of Cash Distribution Plan Refer to...Ch. 16 - Prob. 16.10ECh. 16 - Prob. 16.11.1AECh. 16 - Prob. 16.11.2AECh. 16 - Prob. 16.11.3AECh. 16 - Prob. 16.11.4AECh. 16 - Prob. 16.11.5AECh. 16 - Prob. 16.11.6AECh. 16 - Prob. 16.11.7AECh. 16 - Prob. 16.11.8AECh. 16 - Prob. 16.11.9AECh. 16 - Prob. 16.11.10AECh. 16 - Prob. 16.11.11AECh. 16 - Prob. 16.12AECh. 16 - Prob. 16.13PCh. 16 - Prob. 16.14PCh. 16 - Prob. 16.15PCh. 16 - Prob. 16.16PCh. 16 - Prob. 16.17PCh. 16 - Prob. 16.18PCh. 16 - Matching Terms Match the items in the left-hand...Ch. 16 - Prob. 16.20P
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