Question

In: Accounting

Statement of Partnership Liquidation After closing the accounts on July 1, prior to liquidating the partnership,...

Statement of Partnership Liquidation

After closing the accounts on July 1, prior to liquidating the partnership, the capital account balances of Gold, Porter, and Sims are $27,600, $39,300, and $17,400, respectively. Cash, noncash assets, and liabilities total $42,900, $72,600, and $31,200, respectively. Between July 1 and July 29, the noncash assets are sold for $58,200, the liabilities are paid, and the remaining cash is distributed to the partners. The partners share net income and loss in the ratio of 3:2:1.

Prepare a statement of partnership liquidation for the period July 1-29. Enter any subtractions (balance deficiencies, payments, cash distributions, divisions of loss, sale of assets) as negative numbers using a minus sign. If an amount is zero, enter in "0".

Gold, Porter, and Sims
Statement of Partnership Liquidation
For the Period Ending July 1-29
Cash + Noncash Assets = Liabilities + Capital Gold (3/6) + Capital Porter (2/6) + Capital Sims (1/6)
Balances before realization $ $ $ $ $ $
Sale of assets and division of loss +
Balances after realization $ $ $ $ $ $
Payment of liabilities
Balances after payment of liabilities $ $ $ $ $ $
Cash distributed to partners
Final balances $ $ $ $ $ $

Distribution of Cash Upon Liquidation

Hewitt and Patel are partners, sharing gains and losses equally. They decide to terminate their partnership. Prior to realization, their capital balances are $24,000 and $16,000, respectively. After all noncash assets are sold and all liabilities are paid, there is a cash balance of $30,000.

a. What is the amount of a gain or loss on realization?

Loss $

b. How should the gain or loss be divided between Hewitt and Patel?

Hewitt
Patel

c. How should the cash be divided between Hewitt and Patel? If an amount is zero, enter "0".

Hewitt and Patel
Distribution of Cash
Hewitt Patel
Capital balances before realization $ $
Division of gain or loss on realization
Balances $ $
Cash distributed to partners
Final balances $ $

Solutions

Expert Solution

cash Noncash Assets = Liabilities + Capital Gold (3/6) + Capital Porter (2/6) + Capital Sims (1/6)
Balances before realization 42900 $ 72600 $31200 $27600 $39300 $17400
Sale of assets and division of loss 58200 - 72600 0 -7200 -4800 -2400
Balances after realization 101100 $0 $31200 $20400 $34500 $15000
Payment of liabilities -31200 0 -31200 0 0 0
Balances after payment of liabilities 69900 $0 $0 $20400 $34500 $15000
Cash distributed to partners -69900 0 0 -20400 -34500 -15000
Final balances 0 $0 $0 $0 $0 $0

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Statement of Partnership Liquidation After closing the accounts on July 1, prior to liquidating the partnership,...
Statement of Partnership Liquidation After closing the accounts on July 1, prior to liquidating the partnership, the capital account balances of Gold, Porter, and Sims are $31,800, $45,000, and $20,100, respectively. Cash, noncash assets, and liabilities total $47,100, $83,400, and $33,600, respectively. Between July 1 and July 29, the noncash assets are sold for $66,600, the liabilities are paid, and the remaining cash is distributed to the partners. The partners share net income and loss in the ratio of 3:2:1....
After closing the accounts on July 1, prior to liquidating the partnership, the capital account balances...
After closing the accounts on July 1, prior to liquidating the partnership, the capital account balances of Gold, Porter, and Sims are $28,500, $40,200, and $18,000, respectively. Cash, noncash assets, and liabilities total $45,900, $74,700, and $33,900, respectively. Between July 1 and July 29, the noncash assets are sold for $59,700, the liabilities are paid, and the remaining cash is distributed to the partners. The partners share net income and loss in the ratio of 3:2:1. Prepare a statement of...
After closing the accounts on July 1, prior to liquidating the partnership, the capital account balances...
After closing the accounts on July 1, prior to liquidating the partnership, the capital account balances of Gold, Porter, and Sims are $35,700, $50,400, and $22,500, respectively. Cash, noncash assets, and liabilities total $52,800, $93,600, and $37,800, respectively. Between July 1 and July 29, the noncash assets are sold for $75,000, the liabilities are paid, and the remaining cash is distributed to the partners. The partners share net income and loss in the ratio of 3:2:1. Prepare a statement of...
Statement of Partnership Liquidation After the accounts are closed on April 10, prior to liquidating the...
Statement of Partnership Liquidation After the accounts are closed on April 10, prior to liquidating the partnership, the capital accounts of Zach Fairchild, Austin Lowes, and Amber Howard are $37,400, $6,600, and $29,700, respectively. Cash and noncash assets total $9,600 and $74,100, respectively. Amounts owed to creditors total $10,000. The partners share income and losses in the ratio of 1:1:2. Between April 10 and April 30, the noncash assets are sold for $39,300, the partner with the capital deficiency pays...
Statement of Partnership Liquidation After the accounts are closed on April 10, prior to liquidating the...
Statement of Partnership Liquidation After the accounts are closed on April 10, prior to liquidating the partnership, the capital accounts of Zach Fairchild, Austin Lowes, and Amber Howard are $37,400, $6,600, and $29,700, respectively. Cash and noncash assets total $9,600 and $74,100, respectively. Amounts owed to creditors total $10,000. The partners share income and losses in the ratio of 1:1:2. Between April 10 and April 30, the noncash assets are sold for $39,300, the partner with the capital deficiency pays...
Statement of Partnership Liquidation After the accounts are closed on April 10, prior to liquidating the...
Statement of Partnership Liquidation After the accounts are closed on April 10, prior to liquidating the partnership, the capital accounts of Zach Fairchild, Austin Lowes, and Amber Howard are $42,000, $7,500, and $36,500, respectively. Cash and noncash assets total $23,500 and $84,500, respectively. Amounts owed to creditors total $22,000. The partners share income and losses in the ratio of 1:1:2. Between April 10 and April 30, the noncash assets are sold for $48,500, the partner with the capital deficiency pays...
After closing the accounts on July 1, prior to liquidating the An unincorporated business form consisting...
After closing the accounts on July 1, prior to liquidating the An unincorporated business form consisting of two or more persons conducting business as co-owners for profit.partnership, the capital account balances of Gold, Porter, and Sims are $31,800, $45,300, and $20,100, respectively. Cash, noncash assets, and liabilities total $49,800, $83,700, and $36,300, respectively. Between July 1 and July 29, the noncash assets are sold for $66,900, the liabilities are paid, and the remaining cash is distributed to the partners. The...
After closing the books and prior to liquidating their partnership, Paul and Sam have $14,000 and...
After closing the books and prior to liquidating their partnership, Paul and Sam have $14,000 and $6,700 of capital, respectivly. Prior to liquidation, the partnership had no cash and had $700 of liabilities. The other, non-cash assets were sold for $8,000. The partners share income equally. A.) Calculate the balance of assets prior to realization (selling the assets): B.) Calculate Paul and Sam's capital balances after the assets are sold: C.) Calculate the cash distribution to Ryan after settling liabilities,...
After the accounts are closed on April 10, prior to liquidating the partnership, the capital accounts...
After the accounts are closed on April 10, prior to liquidating the partnership, the capital accounts of Zach Fairchild, Austin Lowes, and Amber Howard are $42,000, $7,500, and $36,500, respectively. Cash and noncash assets total $23,500 and $84,500, respectively. Amounts owed to creditors total $22,000. The partners share income and losses in the ratio of 1:1:2. Between April 10 and April 30, the noncash assets are sold for $48,500, the partner with the capital deficiency pays the deficiency to the...
After the accounts are closed on February 3, 2016, prior to liquidating the partnership, the capital...
After the accounts are closed on February 3, 2016, prior to liquidating the partnership, the capital accounts of William Gerloff, Joshua Chu, and Courtney Jewett are $19,520, $4,080, and $22,180, respectively. Cash and noncash assets total $4,880 and $55,940, respectively. Amounts owed to creditors total $15,040. The partners share income and losses in the ratio of 2:1:1. Between February 3 and February 28, the noncash assets are sold for $36,020, the partner with the capital deficiency pays the deficiency to...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT