3) The partnership of Georgia, Holly, and Izzy was dissolved, and by July 1, 2014, all assets had been converted into cash and all partnership liabilities were paid. The partnership balance sheet on July 1, 2014 (with partner residual profit and loss sharing percentages) was as follows:

Cash $10,000 Georgia, capital (40%) $(20,000)

Holly, capital (30%) (10,000)

Izzy, capital (30%) 40,000

Total assets $10,000 Total liab./equity $ 10,000

The value of the partners' personal assets and liabilities on July 1, 2014 were as follows:

Georgia Holly Izzy

Personal assets $45,000 $30,000 $25,000

Personal liabilities 30,000 20,000 10,000

Required:

Prepare the final statement of partnership liquidation.

Answer rating: 100% (QA)

To prepare the final statement of partnership liquidation we need to follow these steps 1 Determine ... View the full answer