A. Bob, Gary and Bob, who share profits and losses in the ratio of 4:4:2, respectively, decide to liquidate their partnership on December 31, 2019. The condensed statement of financial position is presented below just prior to liquidation. Cash Other Assets Total Assets Case A Case B ASSETS P 700,000 500,000 P BGC Partnership Statement of Financial Position December 31, 2019 40,000 680,000 P 720,000 Case C Case D LIABILITIES AND EQUITY Liabilities Gary, Loan Crab, Loan Bob, Capital Gary, Capital Crab, Capital Total Liabilities and Equity Instruction: Prepare a statement of Liquidation and the required journal entries for each of the following cases and supporting schedule of cash distribution, if necessary assuming cash is immediately distributed to the proper parties. Assume also that the deficient partner/s will invest cash which is then distributed as second payment to the proper parties. P 370,000 340,000 Case E Case F 17/90 P 224,000 10,000 16,000 P 250,000 180,000 190,000 120,000 160,000 P 720,000
A. Bob, Gary and Bob, who share profits and losses in the ratio of 4:4:2, respectively, decide to liquidate their partnership on December 31, 2019. The condensed statement of financial position is presented below just prior to liquidation. Cash Other Assets Total Assets Case A Case B ASSETS P 700,000 500,000 P BGC Partnership Statement of Financial Position December 31, 2019 40,000 680,000 P 720,000 Case C Case D LIABILITIES AND EQUITY Liabilities Gary, Loan Crab, Loan Bob, Capital Gary, Capital Crab, Capital Total Liabilities and Equity Instruction: Prepare a statement of Liquidation and the required journal entries for each of the following cases and supporting schedule of cash distribution, if necessary assuming cash is immediately distributed to the proper parties. Assume also that the deficient partner/s will invest cash which is then distributed as second payment to the proper parties. P 370,000 340,000 Case E Case F 17/90 P 224,000 10,000 16,000 P 250,000 180,000 190,000 120,000 160,000 P 720,000
Chapter11: Partnerships: Distributions, Transfer Of Interests, And Terminations
Section: Chapter Questions
Problem 27P
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Transcribed Image Text:A.
Bob, Gary and Bob, who share profits and losses in the ratio of 4:4:2, respectively, decide
to liquidate their partnership on December 31, 2019. The condensed statement of
financial position is presented below just prior to liquidation.
Cash
Other Assets
Total Assets
ASSETS
Case A P 700,000
Case B
500,000
P
BGC Partnership
Statement of Financial Position
December 31, 2019
40,000
680,000
P 720,000
Case C
Case D
LIABILITIES AND EQUITY
Liabilities
Gary, Loan
Crab, Loan
Bob, Capital
Gary, Capital
Crab, Capital
Total Liabilities and Equity
P 370,000
340,000
Instruction: Prepare a statement of Liquidation and the required journal entries for each of the
following cases and supporting schedule of cash distribution, if necessary assuming cash is
immediately distributed to the proper parties. Assume also that the deficient partner/s will invest
cash which is then distributed as second payment to the proper parties.
Case E
Case F
17/90
P 250,000
180,000
P 224,000
10,000
16,000
190,000
120,000
160,000
P 720,000
...
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