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tion)eBook Show Me How Calculator Print Item After dlosing the accounts on July

ID: 2330614 • Letter: T

Question

tion)eBook Show Me How Calculator Print Item After dlosing the accounts on July 1, prior to liquidating the partnership, the capital account balances of Gold, Porter, and Sims are s35,400, $50,100, and $22,200, respectively Cash, noncash assets, and liabilities total $56,400, $93,000, and $41,700, respectively. Between July 1 and July 29, the noncash assets are sold for $74,400, the liabilities are paid, and the remaining cash is distributed to the partners. The partners share net income and loss in the ratio of 3:2:1. Prepare a statement of partnership liquidation for the period July 1-29. 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 in "0. Gold, Porter, and Sims Statement of Partnership Liquidation for the Period Ending July 1-29 Cash + Noncash Assets Liabilities + Capital Gold (3/6)+ Capital Porter (2/6) + Capital Sims (1/6) Balances before realization Sale of assets and division of loss Balances after realkization Payment of liabilities Balances after payment of liablities Cash distributed to partners Final balances

Explanation / Answer

Gold, Porter and Sims

Statement of Partnership Distribution

For the period ending July 1-29

Cash+

Non Cash Asset =

Liabilities +

Capital Gold (3/6)+

Capital Porter (2/6)+

Capital Sims (1/6)

Balances Before Realization

$    56,400.00

$           93,000.00

$      41,700.00

$     35,400.00

$          50,100.00

$    22,200.00

Sale of asset and Division of loss (WN1)

$    74,400.00

$         (93,000.00)

$                      0  

$     (9,300.00)

$           (6,200.00)

$    (3,100.00)

Balances after realization

$ 130,800.00

$                           0  

$      41,700.00

$     26,100.00

$           43,900.00

$    19,100.00

Payment of Liabilities

$ (41,700.00)

$                           0  

$    (41,700.00)

$                    0  

$                          0  

$                   0  

Balance after payment of Liabilities

$    89,100.00

$                           0  

$                      0  

$     26,100.00

$           43,900.00

$    19,100.00

Cash Distributed to partners

$ (89,100.00)

$                           0  

$                      0  

$   (26,100.00)

$        (43,900.00)

$ (19,100.00)

Final Balances

$                   0  

$                           0  

$                      0  

$                    0  

$                          0  

$                   0  

Working note 1

Distribution of 18600 in ratio of 3:2:1 between Gold, porter and Sims Respectively

Gold share of Loss(18600/6*3)

$      9,300.00

Porter share of Loss(18600/6*2)

$      6,200.00

Sims share of Loss(18600/6*1)

$      3,100.00

Working note 2

Loss on sale

Book value of Non cash Asset

$    93,000.00

Sale consideration

$    74,400.00

Loss on sale

$    18,600.00

Gold, Porter and Sims

Statement of Partnership Distribution

For the period ending July 1-29

Cash+

Non Cash Asset =

Liabilities +

Capital Gold (3/6)+

Capital Porter (2/6)+

Capital Sims (1/6)

Balances Before Realization

$    56,400.00

$           93,000.00

$      41,700.00

$     35,400.00

$          50,100.00

$    22,200.00

Sale of asset and Division of loss (WN1)

$    74,400.00

$         (93,000.00)

$                      0  

$     (9,300.00)

$           (6,200.00)

$    (3,100.00)

Balances after realization

$ 130,800.00

$                           0  

$      41,700.00

$     26,100.00

$           43,900.00

$    19,100.00

Payment of Liabilities

$ (41,700.00)

$                           0  

$    (41,700.00)

$                    0  

$                          0  

$                   0  

Balance after payment of Liabilities

$    89,100.00

$                           0  

$                      0  

$     26,100.00

$           43,900.00

$    19,100.00

Cash Distributed to partners

$ (89,100.00)

$                           0  

$                      0  

$   (26,100.00)

$        (43,900.00)

$ (19,100.00)

Final Balances

$                   0  

$                           0  

$                      0  

$                    0  

$                          0  

$                   0