E16-4 Lump-Sum Liquidation LO 16-2 a 5 4 1 ratio, respectively The balance sheet
ID: 2521116 • Letter: E
Question
E16-4 Lump-Sum Liquidation LO 16-2 a 5 4 1 ratio, respectively The balance sheet on June 30, 20X1, when they decide to liquidate the business is as follows Matthews, Mitchel, and Michaels are partners in the BG Land Development Company and share losses in and Capital $ 25,000 10,000 66.500 28,400 12,100 s 11,000 Accounts Payable Cash Noncash Assets 131,000 Mitchell, Loan Matthews, Capital Mitchell, Capital Michaels, Capital Total Assets 142.000 Total Liablibes and Equities $142,000 The noncash assets are sold for $100,000 Required: a Prepare a statement of partnership realization and liquidation BG LAND DEVELOPMENT COMPANY Statement of Partnership Realization and Liquidation Lump-Sum Distribution Capital Balances Noncash Accounts Mitchell Matthews Cash Mitchell Michaels Balances Sale of assets o S Payment to creditors Outside Creditors Mtchell Payment to partners Batances 01$Explanation / Answer
Ccash Nn Cash assets Acc. Payable Mitchell Lloan Mathews Mitchell Michaels Balance 11000 131000 25000 10000 66500 28400 12100 Sale of Assets 100000 -131000 -15500 -12400 -3100 Balance 111000 0 25000 10000 51000 16000 9000 Payment ot creditors Outside Creditors -25000 -25000 Mitchell -10000 -10000 Balance 76000 0 0 0 51000 16000 9000 Payment to partners -76000 -51000 -16000 -9000 Bbalances 0 0 0 0 0 0
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