The accountant for Smith, Jones & Webb LLP prepared the following balance sheet immediately prior to liquidation
Question:
The accountant for Smith, Jones & Webb LLP prepared the following balance sheet immediately prior to liquidation of the partnership:
During May 2005, noncash assets with a carrying amount of $105,000 realized $75,000, and all liabilities were paid. During June, noncash assets with a carrying amount of $61,000 realized $25,000, and in July the remaining noncash assets with a carrying amount of $114,000 realized $84,000. The cash available at the end of each month was distributed promptly. The partners shared net income and losses equally.
Instructions
Prepare a statement of realization and liquidation for Smith, Jones & Webb LLP covering the entire period of liquidation (May through July 2005) and a supporting working paper showing the computation of installment payments to partners as cash becomes available.
Intermediate Accounting principles and analysis
ISBN: 978-0471737933
2nd Edition
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso