Cam, Andy and Rae are partners in CAR Brokers and share losses in a 3:4:3 ratio, respectively. The balance sheet on December 31, 2023, when they decide to liquidate the business, is as follows: Assets Liabilities and Capital Cash $1,875,000 Accounts Payable $1,000,000 Noncash Assets $937,000 Cam, Loan 312,000 Cam, Capital 500,000 Andy, Capital 375,000 Rae, Capital 625,000 Total Assets $2,812,000 Total Liabilities & Equities $2,812,000 Note: A revaluation was done for non-cash assets valuing them at $1,002,000. The noncash assets were then sold for $800,000. As the accountant for the partnership, how do i prepare a Statement of partnership realization and liquidation?
Cam, Andy and Rae are partners in CAR Brokers and share losses in a 3:4:3 ratio, respectively. The balance sheet on December 31, 2023, when they decide to liquidate the business, is as follows: Assets Liabilities and Capital Cash $1,875,000 Accounts Payable $1,000,000 Noncash Assets $937,000 Cam, Loan 312,000 Cam, Capital 500,000 Andy, Capital 375,000 Rae, Capital 625,000 Total Assets $2,812,000 Total Liabilities & Equities $2,812,000 Note: A revaluation was done for non-cash assets valuing them at $1,002,000. The noncash assets were then sold for $800,000. As the accountant for the partnership, how do i prepare a Statement of partnership realization and liquidation?
Chapter11: Property Dispositions
Section: Chapter Questions
Problem 53P
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Question
Cam, Andy and Rae are partners in CAR Brokers and share losses in a 3:4:3 ratio, respectively. The balance sheet on December 31, 2023, when they decide to liquidate the business, is as follows:
|
Assets |
Liabilities and Capital |
||
|
Cash |
$1,875,000 |
Accounts Payable |
$1,000,000 |
|
Noncash Assets |
$937,000 |
Cam, Loan |
312,000 |
|
|
|
Cam, Capital |
500,000 |
|
|
|
Andy, Capital |
375,000 |
|
|
|
Rae, Capital |
625,000 |
|
Total Assets |
$2,812,000 |
Total Liabilities & Equities |
$2,812,000 |
Note:
A revaluation was done for non-cash assets valuing them at $1,002,000. The noncash assets were then sold for $800,000.
As the accountant for the partnership, how do i prepare a Statement of partnership realization and liquidation?
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