Question
In: Accounting
suppose the partnership of Lauren, Alsop, and Brock liquidates by selling all noncash assets for $87,000....
suppose the partnership of Lauren, Alsop, and Brock liquidates by selling all noncash assets for $87,000. Complete the liquidation schedule.
| cash | Noncash assets | Liabilities |
A (60%) |
B (20%) |
C (20%) | |
| Balance before sale of assets | 14400 | 99000 | 28400 | 46000 | 25000 | 14000 |
| Sale of assets sharing of gain | 159000 | (99000) | 36000 | 12000 | 12000 | |
| Balances | 173400 | 0 | 28400 | 82000 | 37000 | 26000 |
| payment of liabilities | (28400) | (28400) | ||||
| balances | 145000 | 0 | 0 | 82000 | 37000 | 26000 |
| payment of cash to partners | (145000) | (82000) | (37000) | (26000) | ||
| final balance | 0 | 0 | 0 | 0 | 0 | 0 |
Solutions
Expert Solution
Sollution
| Lauren, Alsop, and Brock | ||||||
| Statement of Partnership Liquidation | ||||||
| Cash | Non Cash Assets | Liabilities | Partner's Capital | |||
| Lauren(60%) | Alsop(20%) | Brock(20%) | ||||
| Opening Balance | $ 14,400.00 | $ 99,000.00 | $ 28,400.00 | $ 46,000.00 | $ 25,000.00 | $ 14,000.00 |
| Sale of Non current Assets | $ 87,000.00 | $ (99,000.00) | $ (7,200.00) | $ (2,400.00) | $ (2,400.00) | |
| Balance | $ 101,400.00 | $ - | $ 28,400.00 | $ 38,800.00 | $ 22,600.00 | $ 11,600.00 |
| Payment of Liabilities | $ (28,400.00) | $ - | $ (28,400.00) | $ - | $ - | $ - |
| Balances | $ 73,000.00 | $ - | $ - | $ 38,800.00 | $ 22,600.00 | $ 11,600.00 |
| Distribution of Cash | $ (73,000.00) | $ - | $ - | $ (38,800.00) | $ (22,600.00) | $ (11,600.00) |
| Balance | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
ekkarill92 answered 2 years agoRelated Solutions
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