The EU Partnership has asked you to assist in winding up its business affairs. You compile...

  
 
 

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The EU Partnership has asked you to assist in winding up its business affairs. You compile the following information: 1. The partnership's trial balance on August 31, 2019, is: EU Partnership Trial Balance At August 31, 2019 Debit Credit $ 8,000 $ 24,000 $ 16,000 $ 97,000 Cash Accounts Receivable (net) Inventory Plant & Equipment (net) Accounts Payable $ 22,000 $ 53,000 $ 45,000 $ 25,000 $145,000 $145,000 Esteban, Capital Lenor, Capital Jack, Capital Total 2. The partners share profits and losses as follows: Esteban, 45 percent; Lenor, 35 percent; and Jack, 20 percent. 3. The partners are considering an offer of $115,000 for the firm's accounts receivable, inventory and plant and equipment as of August 31, 2019. The $115,000 will be paid to creditors and the partners in installments, the number and amounts of which are to be negotiat Requirements Prepare a cash distribution plan as of August 31, 2019, showing how much cash each partner will receive if the partners accept the offer to se ELJ Partnership Cash Distribution Plan August 31, 2019 Loss Absorption Potential Esteban Capital Accounts Lenor Jack Esteban Lenor Jack Profit and loss percentages Preliquidation capital balances Loss absorption potential (Capital balances / Loss percent) Decrease highest LAP to next highest. Decrease LAPS to next highest: Summary of Cash Distribution (If Offer of $115,000 is Accepted) Accounts Esteban Lenor Jack Payable Cash available First Next Next Cash available for final payout Additional paid in P&L ratio The EU Partnership has asked you to assist in winding up its business affairs. You compile the following information: 1. The partnership's trial balance on August 31, 2019, is: EU Partnership Trial Balance At August 31, 2019 Debit Credit $ 8,000 $ 24,000 $ 16,000 $ 97,000 Cash Accounts Receivable (net) Inventory Plant & Equipment (net) Accounts Payable $ 22,000 $ 53,000 $ 45,000 $ 25,000 $145,000 $145,000 Esteban, Capital Lenor, Capital Jack, Capital Total 2. The partners share profits and losses as follows: Esteban, 45 percent; Lenor, 35 percent; and Jack, 20 percent. 3. The partners are considering an offer of $115,000 for the firm's accounts receivable, inventory and plant and equipment as of August 31, 2019. The $115,000 will be paid to creditors and the partners in installments, the number and amounts of which are to be negotiat Requirements Prepare a cash distribution plan as of August 31, 2019, showing how much cash each partner will receive if the partners accept the offer to se ELJ Partnership Cash Distribution Plan August 31, 2019 Loss Absorption Potential Esteban Capital Accounts Lenor Jack Esteban Lenor Jack Profit and loss percentages Preliquidation capital balances Loss absorption potential (Capital balances / Loss percent) Decrease highest LAP to next highest. Decrease LAPS to next highest: Summary of Cash Distribution (If Offer of $115,000 is Accepted) Accounts Esteban Lenor Jack Payable Cash available First Next Next Cash available for final payout Additional paid in P&L ratio

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