After closing the accounts on July 1, prior to liquidating the partnership, the capital account balances of
Question:
After closing the accounts on July 1, prior to liquidating the partnership, the capital account balances of Silver, Carillo, and Tingley are $77,700, $51,800, and $25,900, respectively. Cash, noncash assets, and liabilities total $72,500, $124,200, and $41,300, respectively. Between July 1 and July 29, the noncash assets are sold for $116,400, 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 "0".
Silver, Carillo, and Tingley | ||||||
Statement of Partnership Liquidation | ||||||
For the Period July 1-29 | ||||||
Cash + | Noncash Assets = | Liabilities + | Silver (3/6) + | Carillo (2/6) + | Tingley (1/6) | |
Balances before realization | ||||||
Sale of assets and division of loss | ||||||
Balances after realization | ||||||
Payment of liabilities | ||||||
Balances after payment of liabilities | ||||||
Cash distributed to partners | ||||||
Final balances |
Accounting
ISBN: 9781337902687
28th Edition
Authors: Carl S. Warren, Christine Jonick, Jennifer Schneider