After closing the accounts on July 1, prior to liquidating the partnership, the capital account balances of Gold, Porter, and Sims are $39,300, $56,100, and $24,900, respectively. Cash, noncash assets, and liabilities total $60,000, $103,800, and $43,500, respectively. Between July 1 and July 29, the noncash assets are sold for $82,800, 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 $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 $fill in the blank 4 $fill in the blank 5 $fill in the blank 6 Sale of assets and division of loss +fill in the blank 7 fill in the blank 8 fill in the blank 9 fill in the blank 10 fill in the blank 11 fill in the blank 12 Balances after realization $fill in the blank 13 $fill in the blank 14 $fill in the blank 15 $fill in the blank 16 $fill in the blank 17 $fill in the blank 18 Payment of liabilities fill in the blank 19 fill in the blank 20 fill in the blank 21 fill in the blank 22 fill in the blank 23 fill in the blank 24 Balances after payment of liabilities $fill in the blank 25 $fill in the blank 26 $fill in the blank 27 $fill in the blank 28 $fill in the blank 29 $fill in the blank 30 Cash distributed to partners fill in the blank 31
After closing the accounts on July 1, prior to liquidating the partnership, the capital account balances of Gold, Porter, and Sims are $39,300, $56,100, and $24,900, respectively. Cash, noncash assets, and liabilities total $60,000, $103,800, and $43,500, respectively. Between July 1 and July 29, the noncash assets are sold for $82,800, 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 $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 $fill in the blank 4 $fill in the blank 5 $fill in the blank 6 Sale of assets and division of loss +fill in the blank 7 fill in the blank 8 fill in the blank 9 fill in the blank 10 fill in the blank 11 fill in the blank 12 Balances after realization $fill in the blank 13 $fill in the blank 14 $fill in the blank 15 $fill in the blank 16 $fill in the blank 17 $fill in the blank 18 Payment of liabilities fill in the blank 19 fill in the blank 20 fill in the blank 21 fill in the blank 22 fill in the blank 23 fill in the blank 24 Balances after payment of liabilities $fill in the blank 25 $fill in the blank 26 $fill in the blank 27 $fill in the blank 28 $fill in the blank 29 $fill in the blank 30 Cash distributed to partners fill in the blank 31
Chapter21: Partnerships
Section: Chapter Questions
Problem 11BCRQ
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Question
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After closing the accounts on July 1, prior to liquidating the
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 | $fill in the blank 1 | $fill in the blank 2 | $fill in the blank 3 | $fill in the blank 4 | $fill in the blank 5 | $fill in the blank 6 |
| Sale of assets and division of loss | +fill in the blank 7 | fill in the blank 8 | fill in the blank 9 | fill in the blank 10 | fill in the blank 11 | fill in the blank 12 |
| Balances after realization | $fill in the blank 13 | $fill in the blank 14 | $fill in the blank 15 | $fill in the blank 16 | $fill in the blank 17 | $fill in the blank 18 |
| Payment of liabilities | fill in the blank 19 | fill in the blank 20 | fill in the blank 21 | fill in the blank 22 | fill in the blank 23 | fill in the blank 24 |
| Balances after payment of liabilities | $fill in the blank 25 | $fill in the blank 26 | $fill in the blank 27 | $fill in the blank 28 | $fill in the blank 29 | $fill in the blank 30 |
| Cash distributed to partners | fill in the blank 31 | fill in the blank 32 | fill in the blank 33 | fill in the blank 34 | fill in the blank 35 | fill in the blank 36 |
| Final balances |
Expert Solution
Step 1
Assets with a book value of $103,800 are sold for $82,800. The loss on sale of assets will be incurred by the partners in the ratio of 3:2:1.
Then the excess cash will be distributed to them after paying the liabilities.
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