The partners of East, West & South LLP decided to liquidate in the beginning of current...
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The partners of East, West & South LLP decided to liquidate in the beginning of current year. The balance sheet of the partnership is as follows, with the profit and loss ratio of 30%, 30%, and 40%, respectively. Assets. Cash Noncash asset Ease, Loan $ 57,000 280,000 23,000 Answer: Step one loss: Liabilities and partner's capital Accounts payable East, capital (30%) West, capital (30%) South, capital (40%) Total $ 60,000 115,000 95,000 90,000 $360,000 Total $360,000 Before the liquidation process takes place, the partnership would like to develop a predistribution plan. Requirements: (1) Calculate the amounts of step 1 loss and step 2 loss. (3 points each) A Step two loss: A (2) Indicate the name of the partner who will receive cash before the other partners (i.e. the first one to receive cash). (2 points) Answer: The partners of East, West & South LLP decided to liquidate in the beginning of current year. The balance sheet of the partnership is as follows, with the profit and loss ratio of 30%, 30%, and 40%, respectively. Assets. Cash Noncash asset Ease, Loan $ 57,000 280,000 23,000 Answer: Step one loss: Liabilities and partner's capital Accounts payable East, capital (30%) West, capital (30%) South, capital (40%) Total $ 60,000 115,000 95,000 90,000 $360,000 Total $360,000 Before the liquidation process takes place, the partnership would like to develop a predistribution plan. Requirements: (1) Calculate the amounts of step 1 loss and step 2 loss. (3 points each) A Step two loss: A (2) Indicate the name of the partner who will receive cash before the other partners (i.e. the first one to receive cash). (2 points) Answer:
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Related Book For
Accounting Principles
ISBN: 978-1119048473
7th Canadian Edition Volume 2
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
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