Question: Hi, I need help on what is the answer in my activity. I hope that you can help me on what is the answer on
Hi, I need help on what is the answer in my activity. I hope that you can help me on what is the answer on letters A and B. Thank you so much
(Exercise 3.4) Carlo and Dodge started Carlo & Dodge LLP some years ago and managed to operate prof- itably for several years. Recently, however, they lost a lawsuit requiring payment of large damages because of Carlo's negligence and incurred unexpected losses on trade accounts receivable and inventories. As a result, they decided to liquidate the partnership. After all noncash assets were realized, only $18,000 was available to pay liabilities, which amounted to $33,000. The partners* capital account balances before the start of liquidation and their income-sharing percentages are shown below: CHECK FIGURE h. Credit Dodge, Capital Account Balances Income-Sharing Percentages capital, $9.675. Carlo $23,000 55% Dodge 13,500 45% a. Prepare a working paper to compute the total loss incurred on the liquidation of the Carlo & Dodge LLP. b. Prepare a journal entry to record Carlo's payment of $15,000 to partnership creditors and to close the partners' capital accounts. Carlo was barely solvent after paying the partnership creditors, but Dodge had net assets, exclusive of partnership interest, in ex- cess of $100.000