Liquidation schedule-positive capital accounts The ABC partnership reports the following condensed balance sheet: Cash $200,000 Liabilities...

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Liquidation schedule-positive capital accounts The ABC partnership reports the following condensed balance sheet: Cash $200,000 Liabilities Noncash assets 600,00 Partner A, capital $300,000 125,000 Partner B, capital 125,000 Partner C, capital 250,000 Total assets $800,000 Total liabilities and partner capital $800,000 The partners wish to liquidate the partnership. The noncash assets are sold for $450,000 with the loss distributed to the partners in the ratio of 30% / 30% / 40% to partner A, B, and C, respectively. The liabilities are paid in full. Prepare a schedule detailing the liquidation of the assets, repayment of the liabilities, and distribution of the remaining cash to the partners. HINT: Use a negative sign with answers that reduce account balances. Liquidation Schedule of ABC Partnership ----Capital Accounts----- Cash Noncash Assets Liabilities A B C Capital account, prior to liquidation $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Sale of noncash assets 0 0 0 0 0 0 0 0 0 0 0 0 Payment of creditors Distribution to partners 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Post-liquidation balances $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Liquidation schedule-positive capital accounts The ABC partnership reports the following condensed balance sheet: Cash $200,000 Liabilities Noncash assets 600,00 Partner A, capital $300,000 125,000 Partner B, capital 125,000 Partner C, capital 250,000 Total assets $800,000 Total liabilities and partner capital $800,000 The partners wish to liquidate the partnership. The noncash assets are sold for $450,000 with the loss distributed to the partners in the ratio of 30% / 30% / 40% to partner A, B, and C, respectively. The liabilities are paid in full. Prepare a schedule detailing the liquidation of the assets, repayment of the liabilities, and distribution of the remaining cash to the partners. HINT: Use a negative sign with answers that reduce account balances. Liquidation Schedule of ABC Partnership ----Capital Accounts----- Cash Noncash Assets Liabilities A B C Capital account, prior to liquidation $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Sale of noncash assets 0 0 0 0 0 0 0 0 0 0 0 0 Payment of creditors Distribution to partners 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Post-liquidation balances $ 0 $ 0 $ 0 $ 0 $ 0 $ 0

Answer rating: 100% (QA)

Liquidation Schedule of ABC Partnership Positive Capital Accounts A B C Total Ca... View the full answer