Ole Low, Arnt Olson, and Stig Lokum decided to liquidate the CRANE partnership on December 31 of the current year, and go their separate ways. The partners share profit and losses equally. As at December 31, the partnership had cash of $14,000, noncash assets of $119,000, and liabilities of $18,000. Before selling their noncash assets, the partners had capital balances of $44,700, $62,300, and $8,000, respectively. The noncash assets were sold for $80,000 and the creditors were paid. Calculate the loss on the sale of the noncash assets and the amount of cash remaining after paying the liabilities. Loss on sale of noncash assets Cash balance after paying the liabilities$
Ole Low, Arnt Olson, and Stig Lokum decided to liquidate the CRANE partnership on December 31 of the current year, and go their separate ways. The partners share profit and losses equally. As at December 31, the partnership had cash of $14,000, noncash assets of $119,000, and liabilities of $18,000. Before selling their noncash assets, the partners had capital balances of $44,700, $62,300, and $8,000, respectively. The noncash assets were sold for $80,000 and the creditors were paid. Calculate the loss on the sale of the noncash assets and the amount of cash remaining after paying the liabilities. Loss on sale of noncash assets Cash balance after paying the liabilities$
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter19: Accounting For Partnerships
Section: Chapter Questions
Problem 5CE
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Transcribed Image Text:Ole Low, Arnt Olson, and Stig Lokum decided
to liquidate the CRANE partnership on
December 31 of the current year, and go their
separate ways. The partners share profit and
losses equally. As at December 31, the
partnership had cash of $14,000, noncash
assets of $119,000, and liabilities of $18,000.
Before selling their noncash assets, the
partners had capital balances of $44,700,
$62,300, and $8,000, respectively. The
noncash assets were sold for $80,000 and
the creditors were paid.
Calculate the loss on the sale of the noncash
assets and the amount of cash remaining
after paying the liabilities.
Loss on sale of noncash assets
Cash balance after paying the liabilities$
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