In: Accounting
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 | $ | 87,000 | Accounts payable | $ | 112,000 | |||
Other assets | 785,000 | Ferris, loan | 48,000 | |||||
Hardwick, loan | 38,000 | Hardwick, capital | 320,000 | |||||
Saunders, capital | 220,000 | |||||||
Ferris, capital | 210,000 | |||||||
Total assets | $ | 910,000 | Total liabilities and capital | $ | 910,000 | |||
The partners decide to liquidate the partnership. Forty percent of the other assets are sold for $100,000. Prepare a proposed schedule of liquidation at this point in time. (Amounts to be deducted should be entered with a minus sign.)