E 17-6 Safe payments schedule A condensed balance sheet with profit-sharing percentages for the Eve, Fae, and Gia partnership on January 1, 2016, shows the following: Cash $100,000 Liabilities $80,000 Other assets 500,000 Eve capital (40%) 100,000 Fae capital (40%) 250,000 Gia capital (20%) 170,000 $600,000 $600,000 On January 2, 2016, the partners decide to liquidate the business, and during January they sell assets with a book value of $300,000 for $170,000. Required Prepare a safe payments schedule to show the amount of cash to be distributed to each partner if all available cash, except for a $10,000 contingency fund, is distributed immediately after the sale.
E 17-6 Safe payments schedule A condensed balance sheet with profit-sharing percentages for the Eve, Fae, and Gia partnership on January 1, 2016, shows the following: Cash $100,000 Liabilities $80,000 Other assets 500,000 Eve capital (40%) 100,000 Fae capital (40%) 250,000 Gia capital (20%) 170,000 $600,000 $600,000 On January 2, 2016, the partners decide to liquidate the business, and during January they sell assets with a book value of $300,000 for $170,000. Required Prepare a safe payments schedule to show the amount of cash to be distributed to each partner if all available cash, except for a $10,000 contingency fund, is distributed immediately after the sale.
Accounting (Text Only)
26th Edition
ISBN:9781285743615
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter12: Accounting For Partnerships And Limited Liability Companies
Section: Chapter Questions
Problem 12.15EX
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E 17-6 Safe payments schedule
A condensed balance sheet with profit-sharing percentages for the Eve, Fae, and Gia
|
Cash |
$100,000 |
Liabilities |
$80,000 |
|
Other assets |
500,000 |
Eve capital (40%) |
100,000 |
|
|
|
Fae capital (40%) |
250,000 |
|
|
|
Gia capital (20%) |
170,000 |
|
|
$600,000 |
|
$600,000 |
On January 2, 2016, the partners decide to liquidate the business, and during January they sell assets with a book value of $300,000 for $170,000.
Required
Prepare a safe payments schedule to show the amount of cash to be distributed to each partner if all available cash, except for a $10,000 contingency fund, is distributed immediately after the sale.
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