The CDG Carlos, Dan, and Gail Partnership has decided to liquidate as of December 1, 20X6. A balance sheet on the date follows: CDG PARTNERSHIP Balance Sheet At December 1, 20X6 Assets Cash $ 32,500 Accounts Receivable (net) 90,000 Inventories 115,000 Property, Plant and Equipment (net) 330,000 Total Assets $ 567,500 Liabilities and Capital Liabilities: Accounts Payable $ 292,500 Capital: Carlos, Capital $ 135,000 Dan, Capital 65,000 Gail, Capital 75,000 Total Capital 275,000 Total Liabilities and Capital $ 567,500 Additional Information Each partner’s personal assets (excluding partnership capital interests) and personal liabilities as of December 1, 20X6, follow: Carlos Dan Gail Personal assets $ 265,000 $ 315,000 $ 365,000 Personal liabilities (237,500 ) ( 232,500 ) (343,900 ) Personal net worth $ 27,500 $ 82,500 $ 21,100 Carlos, Dan, and Gail share profits and losses in the ratio 20:40:40. CDG sold all noncash assets on December 10, 20X6, for $273,500. Required: a. Prepare a statement of realization and liquidation for the CDG Partnership on December 10, 20X6. (Do not round your intermediate calculations. Round your final answers to the nearest whole dollar.)

CDG PARTNERSHIP
Statement of Realization and Liquidation
Lump-sum Liquidation on December 10, 20X6
				Capital Balances
	Cash	Noncash Assets	Liabilities	Carlos	Dan	Gail
Preliquidation balances
Sale of assets and distribution of loss
	$0	$0	$0	$0	$0	$0
Cash contributed by Gail to extent of positive net worth
	$0	$0	$0	$0	$0	$0
Distribution of deficit of insolvent partner
	$0	$0	$0	$0	$0	$0
Contribution by Dan to remedy deficit
	$0	$0	$0	$0	$0	$0
Payment to creditors
	$0	$0	$0	$0	$0	$0
Payment to partner
Postliquidation balances	$0	$0	$0	$0	$0	$0

b. Prepare a schedule of the net worth of each of the three partners as of December 10, 2006, after the liquidation of the partnership is completed assuming that no other events occurred in the 10-day period that changed any of the partners’ personal assets and personal liabilities. (Round your answers to the nearest whole dollar.)

CDG PARTNERSHIP
Net Worth of Partners
December 10, 20X6
	Carlos	Dan	Gail
Personal assets, excluding partnership capital interests
Personal liabilities
Personal net worth, excluding partnership capital interests, Dec. 1, 20X6	$0	$0	$0
Contribution to partnership
Liquidating distribution from partnership
Net worth, December 10, 20X6	$0	$0	$0

Answer rating: 100% (QA)

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