The after-closing trial balance of the Lin, Mary, and Nell partnership at December 31, 2011, was as

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The after-closing trial balance of the Lin, Mary, and Nell partnership at December 31, 2011, was as follows:

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ADDITIONAL INFORMATION1. The partnership is to be liquidated as soon as the assets can be converted into cash. Cash realized on conversion of assets is to be distributed as it becomes available, except that $10,000 is to be held to provide for contingencies during the liquidation period.2. Profits and losses on liquidation are to be divided in the percentages indicated in the trial balance.REQUIRED1. Prepare a cash distribution plan for the Lin, Mary, and Nell partnership.2. If $25,000 cash is realized from the receivables and inventories during January 2012, how should the cash be distributed at the end of January? (Assume that this is the first distribution of cash during the liquidationperiod.)

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
Liquidation
Liquidation in finance and economics is the process of bringing a business to an end and distributing its assets to claimants. It is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations when they are due....
Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...
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Advanced Accounting

ISBN: 9780132568968

11th Edition

Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith

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