Connect Access Card for Advanced Financial Accounting
12th Edition
ISBN: 9781260165098
Author: Christensen, Theodore E., COTTRELL, David
Publisher: McGraw-Hill Education
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Question
Chapter 16, Problem 16.4E
To determine
Lump-sum liquidations: liquidation of
Requirement 1
The preparation of statement of partnership realization and liquidation.
To determine
Lump-sum liquidations: liquidation of partnership in which all assets are converted into cash within a short time, creditors are paid, and a single lump-sum payment is made to the partners for their capital interests. Partnership may experiences losses on disposal of assets, because it has to make offer below the normal selling price to encourage immediate sales. The partnership attempts to collect receivable has to offer large cash discounts for prompt payments. Any goodwill on the partnership books is generally written off when the partnership begins liquidation because it is no longer a going concern.
Requirement 2
The entry to account the liquidation of BG company.
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Given information for question below:
MAQHUZE WELDERS had the following balances when they commenced
a simultenous liquidation of the partnership:
432 000
Welding equipment (cost)..
Welding equipment (accumulated depreciation)..
Trade receivables..
145 800
70 200
Trade payables..
32 400
The following transactions took place as part of the liquidation:
1. Welding equipment were sold for..
2. Debtors settled their accounts in full
3. On settlement, the creditors granted a settlement discount of...
3. Liquidation costs amounted to...
216000
1700
27000
. *...
QUESTION 1
Which one of the following alternatives represents the correct net profit (or loss)
made on the simultaneous liquidation?
A. 68 500
B. 74 500
C. 89 400
D. 76 200
Statement of LLC Liquidation
Lester, Torres, and Hearst are members of Arcadia Sales, LLC, sharing income and losses in the ratio of 2:2:1, respectively. The members decide to liquidate the limited liability company. The members' equity prior to liquidation and asset realization on August 1 are as follows:
Lester
$28,100
Torres
65,000
Hearst
40,400
Total
$133,500
In winding up operations during the month of August, noncash assets with a book value of $175,800 are sold for $218,000, and liabilities of $56,500 are satisfied. Prior to realization, Arcadia Sales has a cash balance of $14,200.
a. Prepare a statement of LLC liquidation. 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 "0".
Arcadia Sales, LLC
Statement of LLC Liquidation
For the Period August 1-31
Cash +
NoncashAssets =
Liabilities +
MemberEquityLester (2/5) +…
Statement of LLC Liquidation
Lester, Torres, and Hearst are members of Arcadia Sales, LLC, sharing income and losses in the ratio of 2:2:1, respectively. The members decide to liquidate the limited liability company. The members' equity prior to liquidation and asset realization on August 1 are as follows:
Lester
$16,000
Torres
37,100
Hearst
23,000
Total
$76,100
In winding up operations during the month of August, noncash assets with a book value of $100,200 are sold for $124,200, and liabilities of $33,200 are satisfied. Prior to realization, Arcadia Sales has a cash balance of $9,100.
a. Prepare a statement of LLC liquidation. 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 "o".
Arcadia Sales, LLC
Statement of LLC Liquidation
For the Period August 1-31
Member
Member
Member
Equity
Equity
Equity
Noncash
Lester (2/5) + Torres (2/5) + Hearst (1/5)
Cash +…
Chapter 16 Solutions
Connect Access Card for Advanced Financial Accounting
Ch. 16 - What are the major causes of a dissolution? What...Ch. 16 - Prob. 16.2QCh. 16 - Prob. 16.3QCh. 16 - Prob. 16.4QCh. 16 - Contrast a lump-sum liquidation with an...Ch. 16 - Prob. 16.6QCh. 16 - Prob. 16.7QCh. 16 - Prob. 16.8QCh. 16 - Prob. 16.9QCh. 16 - Prob. 16.10Q
Ch. 16 - Prob. 16.11QCh. 16 - The installment liquidation process uses a...Ch. 16 - Prob. 16.13QCh. 16 - Prob. 16.14QCh. 16 - Prob. 16.15QCh. 16 - Cash Distributions to Partners Analysis The...Ch. 16 - Prob. 16.2CCh. 16 - Prob. 16.3CCh. 16 - Sharing Losses during Liquidation Research Hiller,...Ch. 16 - Prob. 16.1.1ECh. 16 - Prob. 16.1.2ECh. 16 - Prob. 16.1.3ECh. 16 - Prob. 16.1.4ECh. 16 - Prob. 16.1.5ECh. 16 - Prob. 16.1.6ECh. 16 - Prob. 16.1.7ECh. 16 - Prob. 16.2.1ECh. 16 - Prob. 16.2.2ECh. 16 - Prob. 16.2.3ECh. 16 - Prob. 16.2.4ECh. 16 - Prob. 16.2.5ECh. 16 - Prob. 16.2.6ECh. 16 - Prob. 16.3ECh. 16 - Prob. 16.4ECh. 16 - Prob. 16.5ECh. 16 - Prob. 16.6ECh. 16 - Prob. 16.7ECh. 16 - Prob. 16.8ECh. 16 - Confirmation of Cash Distribution Plan Refer to...Ch. 16 - Prob. 16.10ECh. 16 - Prob. 16.11.1AECh. 16 - Prob. 16.11.2AECh. 16 - Prob. 16.11.3AECh. 16 - Prob. 16.11.4AECh. 16 - Prob. 16.11.5AECh. 16 - Prob. 16.11.6AECh. 16 - Prob. 16.11.7AECh. 16 - Prob. 16.11.8AECh. 16 - Prob. 16.11.9AECh. 16 - Prob. 16.11.10AECh. 16 - Prob. 16.11.11AECh. 16 - Prob. 16.12AECh. 16 - Prob. 16.13PCh. 16 - Prob. 16.14PCh. 16 - Prob. 16.15PCh. 16 - Prob. 16.16PCh. 16 - Prob. 16.17PCh. 16 - Prob. 16.18PCh. 16 - Matching Terms Match the items in the left-hand...Ch. 16 - Prob. 16.20P
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