On December 31, 2020, the partners of A, B & C LLP, who shared net income and losses in the ratio of 5 : 3: 2, respectively, decided to liquidate the partnership. The partnership trial balance on that date was as follows: A, B & C LLP Trial Balance, December 31, 2020 Debit S 18,000 Credit Cash Loan receivable from A Trade accounts receivable (net) Inventories Machinery and equipment (net) Trade accounts payable Loan payable to B A, capital В, саpital C, capital Totals The partners planned a lengthy time period for realization of noncash assets in order to minimize liquidation losses. All available cash, less an amount retained to provide for future liquidation costs, was to be distributed to the partners at the end of cach 30,000 66,000 52,000 189,000 $ 3,000 20,000 118,000 90,000 74,000 $355,000 $355,000 month. Prepare a cash distribution program for A, B & C LLP on December 31, 2020, showing how cash should be distributed to creditors and to partners as it becomes available during liquidation. Round amounts to the nearest dollar.
On December 31, 2020, the partners of A, B & C LLP, who shared net income and losses in the ratio of 5 : 3: 2, respectively, decided to liquidate the partnership. The partnership trial balance on that date was as follows: A, B & C LLP Trial Balance, December 31, 2020 Debit S 18,000 Credit Cash Loan receivable from A Trade accounts receivable (net) Inventories Machinery and equipment (net) Trade accounts payable Loan payable to B A, capital В, саpital C, capital Totals The partners planned a lengthy time period for realization of noncash assets in order to minimize liquidation losses. All available cash, less an amount retained to provide for future liquidation costs, was to be distributed to the partners at the end of cach 30,000 66,000 52,000 189,000 $ 3,000 20,000 118,000 90,000 74,000 $355,000 $355,000 month. Prepare a cash distribution program for A, B & C LLP on December 31, 2020, showing how cash should be distributed to creditors and to partners as it becomes available during liquidation. Round amounts to the nearest dollar.
Chapter10: Partnerships: Formation, Operation, And Basis
Section: Chapter Questions
Problem 59P
Related questions
Question
Transcribed Image Text:On December 31, 2020, the partners of A, B & C LLP, who shared net income and
losses in the ratio of 5 : 3 : 2, respectively, decided to liquidate the partnership. The
partnership trial balance on that date was as follows:
A, B & C LLP Trial Balance, December 31, 2020
Debit
S 18,000
30,000
Credit
Cash
Loan receivable from A
Trade accounts receivable (net)
Inventories
Machinery and equipment (net)
Trade accounts payable
Loan payable to B
А, саpital
В саpital
С, сарital
Totals
The partners planned a lengthy time period for realization of noncash assets in order
to minimize liquidation losses. All available cash, less an amount retained to provide
for future liquidation costs, was to be distributed to the partners at the end of each
month.
Prepare a cash distribution program for A, B &C LLP on December 31, 2020,
showing how cash should be distributed to creditors and to partners as it becomes
available during liquidation. Round amounts to the nearest dollar.
66,000
52,000
189,000
$ 53,000
20,000
118,000
90,000
74,000
$355,000 $355,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College