On January 1, the partners of Van, Bakel, and Cox (who share profits and losses in...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On January 1, the partners of Van, Bakel, and Cox (who share profits and losses in the ratio of 5:3:2, respectively) decide to terminate operations and liquidate their partnership. The trial balance at this date follows: Cash Accounts receivable Inventory Machinery and equipment, net Van, loan Accounts payable Bakel, loan Van, capital Bakel, capital Cox, capital Totals Debit $ 42,000 Credit 114,000 100,000 237,000 78,000 $ 96,000 68,000 195,000 114,000 98,000 $ 571,000 $ 571,000 The partners plan a program of piecemeal conversion of the partnership's assets to minimize liquidation losses. All available cash, less an amount retained to provide for future expenses, is to be distributed to the partners at the end of each month. A summary of the liquidation transactions follows: January February March Collected $75,000 of the accounts receivable; the balance is deemed uncollectible. Received $62,000 for the entire inventory. Paid $2,000 in liquidation expenses. Paid $93,000 to the outside creditors after offsetting a $3,000 credit memorandum received by the partnership on January 11. Retained $34,000 cash in the business at the end of January to cover liquidation expenses. The remainder is distributed to the partners. Paid $3,000 in liquidation expenses. Retained $22,000 cash in the business at the end of the month to cover additional liquidation expenses. Received $170,000 on the sale of all machinery and equipment. Paid $5,000 in final liquidation expenses. Retained no cash in the business. Prepare proposed schedules of liquidation on January 31, February 28, and March 31 to determine the safe payments made to the partners at the end of each of these three months. Complete this question by entering your answers in the tabs below. January February March Prepare proposed schedule of liquidation to determine the safe payments made to the partners at the end of January. (Amounts to be deducted should be entered with a minus sign.) VAN, BAKEL, AND COX PARTNERSHIP Proposed Schedule of Liquidation January 31 Balances - January 1 Collected accounts receivable Sold inventory Paid liquidation expenses Paid accounts payable Subtotal (actual balances) Maximum loss on assets Maximum liquidation expenses Subtotal (potential balances) Allocation of deficit capital balance Safe payments to partners - January 31 Cash Noncash Assets Liabilities Van, Capital and Loan 50% Bakel, Capital and Loan 30% Cox, Capital 20% Complete this question by entering your answers in the tabs below. January February March Prepare proposed schedule of liquidation to determine the safe payments made to the partners at the end of February. (Amounts to be deducted should be entered with a minus sign.) Balances before January 31 safe payments Safe payments to partners - January 31 Balances February 1 Paid liquidation expenses Subtotal (actual balances) Maximum loss on assets Maximum liquidation expenses Subtotal (potential balances) Allocation of deficit capital balance Safe payments to partners - February 28 VAN, BAKEL, AND COX PARTNERSHIP Proposed Schedule of Liquidation February 28 Noncash Cash Liabilities Assets Van, Capital and Loan 50% Bakel, Capital and Loan 30% Cox, Capital 20% Complete this question by entering your answers in the tabs below. January February March Prepare proposed schedule of liquidation to determine the safe payments made to the partners at the end of March. (Amounts to be deducted should be entered with a minus sign.) Balances before February 28 safe payments Safe payments to partners - February 28 Balances - March 1 Sold machinery Paid liquidation expenses Subtotal (actual balances) Safe payments to partners - March 31 Ending balances - March 31 VAN, BAKEL, AND COX PARTNERSHIP Proposed Schedule of Liquidation March 31 Van, Cash Noncash Assets Liabilities Capital and Loan 50% Bakel, Capital and Loan 30% Cox, Capital 20% On January 1, the partners of Van, Bakel, and Cox (who share profits and losses in the ratio of 5:3:2, respectively) decide to terminate operations and liquidate their partnership. The trial balance at this date follows: Cash Accounts receivable Inventory Machinery and equipment, net Van, loan Accounts payable Bakel, loan Van, capital Bakel, capital Cox, capital Totals Debit $ 42,000 Credit 114,000 100,000 237,000 78,000 $ 96,000 68,000 195,000 114,000 98,000 $ 571,000 $ 571,000 The partners plan a program of piecemeal conversion of the partnership's assets to minimize liquidation losses. All available cash, less an amount retained to provide for future expenses, is to be distributed to the partners at the end of each month. A summary of the liquidation transactions follows: January February March Collected $75,000 of the accounts receivable; the balance is deemed uncollectible. Received $62,000 for the entire inventory. Paid $2,000 in liquidation expenses. Paid $93,000 to the outside creditors after offsetting a $3,000 credit memorandum received by the partnership on January 11. Retained $34,000 cash in the business at the end of January to cover liquidation expenses. The remainder is distributed to the partners. Paid $3,000 in liquidation expenses. Retained $22,000 cash in the business at the end of the month to cover additional liquidation expenses. Received $170,000 on the sale of all machinery and equipment. Paid $5,000 in final liquidation expenses. Retained no cash in the business. Prepare proposed schedules of liquidation on January 31, February 28, and March 31 to determine the safe payments made to the partners at the end of each of these three months. Complete this question by entering your answers in the tabs below. January February March Prepare proposed schedule of liquidation to determine the safe payments made to the partners at the end of January. (Amounts to be deducted should be entered with a minus sign.) VAN, BAKEL, AND COX PARTNERSHIP Proposed Schedule of Liquidation January 31 Balances - January 1 Collected accounts receivable Sold inventory Paid liquidation expenses Paid accounts payable Subtotal (actual balances) Maximum loss on assets Maximum liquidation expenses Subtotal (potential balances) Allocation of deficit capital balance Safe payments to partners - January 31 Cash Noncash Assets Liabilities Van, Capital and Loan 50% Bakel, Capital and Loan 30% Cox, Capital 20% Complete this question by entering your answers in the tabs below. January February March Prepare proposed schedule of liquidation to determine the safe payments made to the partners at the end of February. (Amounts to be deducted should be entered with a minus sign.) Balances before January 31 safe payments Safe payments to partners - January 31 Balances February 1 Paid liquidation expenses Subtotal (actual balances) Maximum loss on assets Maximum liquidation expenses Subtotal (potential balances) Allocation of deficit capital balance Safe payments to partners - February 28 VAN, BAKEL, AND COX PARTNERSHIP Proposed Schedule of Liquidation February 28 Noncash Cash Liabilities Assets Van, Capital and Loan 50% Bakel, Capital and Loan 30% Cox, Capital 20% Complete this question by entering your answers in the tabs below. January February March Prepare proposed schedule of liquidation to determine the safe payments made to the partners at the end of March. (Amounts to be deducted should be entered with a minus sign.) Balances before February 28 safe payments Safe payments to partners - February 28 Balances - March 1 Sold machinery Paid liquidation expenses Subtotal (actual balances) Safe payments to partners - March 31 Ending balances - March 31 VAN, BAKEL, AND COX PARTNERSHIP Proposed Schedule of Liquidation March 31 Van, Cash Noncash Assets Liabilities Capital and Loan 50% Bakel, Capital and Loan 30% Cox, Capital 20%
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Financial data for Beaker Company for last year appear below: Beaker Company Statements of Financial Position Assets: Cash Accounts receivable Inventory Plant and equipment (net) Investment in Cedar...
-
Required information [The following information applies to the questions displayed below.] Great Ape Glassworks manufactures glass used for the screens on smartphones. It has two producing...
-
Describe the origins of filial therapy and contributions to the approach over time. Explain the tenets of the Guerneys' original plan for filial therapy. Explain later contributions to filial therapy...
-
Why must we recognize and address challenges caused by diversity and work to implement a more inclusive healthcare workforce?
-
Condensed financial data of Arma Inc. follow. Additional information: 1. New plant assets costing $85,000 were purchased for cash during the year. 2. Old plant assets having an original cost of...
-
Magic Aqua Ltd, which runs competitive swimming schools for children aged 816, has budgeted revenue for the first 6 months of 2025 as follows. All revenue is provided on account and Magic Aqua Ltd...
-
How has feedback been incorporated in patient safety processes?
-
Pepsi launched a new global branding campaign based on the concept of live in the moment called Live For Now. It did extensive research prior to the campaigns launch. What research should be done to...
-
Problem 21-3 Miller Model with Corporate and Personal Taxes An unlevered firm has a value of $650 million. An otherwise identical but levered firm has $180 million in debt. Under the Miller model,...
-
Identify the problems associated with the evolution of the UK grocery market case and the alternative actions to mitigate these problems
-
1. a. Use Simpson's rule to approximate for e-2x dx with n = 4 b. This approximation is within how much of the actual value of the integral?
-
In the following problem, the expression is the right side of the formula for cos( - ) with particular values for and . cos(87) cos(42) + sin(87) sin(42) a. Identify a and in each expression. The...
-
How does the strategic incorporation of visual elements such as charts and graphs enhance the comprehensibility of quantitative data in business presentations ?
-
What will the following code print out? void AddPrimes(vector list) list.push_back(3); list.push_back(5); list.push_back(7); list.push_back(11); list.push_back(13); } vector primes;...
-
Critics refer to them as benevolent paternalism because they argue they force people to eat their vegetables by restricting the freedom to choose. For example, several cities, including New York and...
-
(Please note, in my class we are instructed to calculated CI of 95% by multiplying by 2... not the exact decimal. Also, please show your work! Thanks!) For each question, find the approximate 95% CI...
-
In the simple quantity theory of money, what will lead to an increase in aggregate demand? In monetarism, what will lead to an increase in aggregate demand?
-
Fitch and Wall have been in partnership for many years sharing profits and losses in the ratio 5 : 3 respectively. The following was their balance sheet as at 31 December 2002. On 1 January 2003,...
-
The Unilever 2002 annual review stated: Total Shareholder Return (TSR) is a concept used to compare the performance of different companies stocks and shares over time. It combines share price...
-
On the Internet find the 2010 Transparency International Corruption Perception Index and determine the ranking of these countries. a. United States b. Japan c. Chad d. Iceland e. Denmark
Study smarter with the SolutionInn App