The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its...
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The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its business property. A balance sheet drawn up at this time shows the following account balances: Cash Noncash assets. Total assets $ 71,000 291,000 $362,000 Liabilities Frick, capital (60%) Wilson, capital (20%) Clarke, capital (20%) Total liabilities and capital Part A Prepare a predistribution plan for this partnership. Part B The following transactions occur in liquidating this business: $ 39,000 177,000 47,000 99,000 $362,000 1. Distributed safe payments of cash immediately to the partners. Liquidation expenses of $9,000 are estimated as a basis for this computation. 2. Sold noncash assets with a book value of $118,000 for $71,000. 3. Paid all liabilities. 4. Distributed safe payments of cash again. 5. Sold remaining noncash assets for $63,000. 6. Paid actual liquidation expenses of $7,000 only. 7. Distributed remaining cash to the partners and closed the financial records of the business permanently. Produce a final statement of liquidation for this partnership using the predistribution plan to determine payments of cash to partners. Produce a final statement of liquidation for this partnership using the predistribution plan to determine payments of cash to partners. Part C Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation. Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare a predistribution plan for this partnership. Frick, Capital Beginning balances Assumed loss of Schedule 1 Step one balances Assumed loss of Schedule 2 Step two balances Assumed loss of Schedule 3 Step three balances 0 0 0 Wilson, Capital 0 0 0 Clarke, Capital 0 0 Required A Required B Produce a final statement of liquidation for this partnership using the predistribution plan to determine payments of cash to partners. (Do not round intermediate calculations.) Beginning balances Distribution Updated balances Noncash assets sold Updated balances Liabilities paid Updated balances First (remainder of first distribution) Next Next Required C Updated balances Noncash assets sold Updated balances Liquidation expenses paid Updated balances FRICK, WILSON, AND CLARKE Statement of Partnership Liquidation Final Balances Final distribution based on ending capital account balances Ending balance Cash $ 71,000 $ 71,000 $ 71,000 $ 71,000 Noncash Assets $ 291,000 $ 39,000 $ $ 291,000 $ 39,000 $ Liabilities $ 291,000 $ 39,000 $ $ 291,000 $ 39,000 $ $ 71,000 $ 291,000 $ 39,000 $ 71,000 $ 291,000 $ 71,000 $ 291,000 Frick, Capital (60%) $ 71,000 $ 291,000 EA $ 39,000 Clarke, Wilson, Capital Capital (20%) (20%) 177,000 $ 47,000 $ 99,000 $ 39,000 $ 177,000 $ 47,000 $ 99,000 177,000 $ 47,000 $ 99,000 177,000 $ 47,000 $ 99,000 $ 39,000 $ 177,000 $ 47,000 $ 99,000 177,000 $ 47,000 $ 99,000 177,000 $ 47,000 177,000 $ 47,000 $ 99,000 $ 99,000 Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 Record the entry for initial cash payments made to partners in accordance with predistribution plan. Note: Enter debits before credits. Transaction 1 4 5 6 7 Record entry General Journal Clear entry Debit Credit View general journal Journal entry worksheet 1 2 Transaction 2 3 Record the allocation of losses to partners on sale of noncash assets. Note: Enter debits before credits. Record entry 4 5 6 7 General Journal Clear entry Debit Credit View general journal > Journal entry worksheet < 1 2 3 Record the extinguishment of all partnership liabilities. Note: Enter debits before credits. Transaction 3 Record entry 4 5 6 7 General Journal Clear entry Debit Credit View general journal > Journal entry worksheet < 1 2 3 Note: Enter debits before credits. Transaction 4 Record the entry for cash payments made to partners in accordance with predistribution plan. Record entry 5 General Journal 6 7 Clear entry Debit Credit View general journal > Journal entry worksheet < 1 2 3 4 Note: Enter debits before credits. Transaction 5 Record entry 5 Record the allocation of losses to partners on sale of remaining noncash assets. General Journal 6 Clear entry 7 Debit Credit View general journal Journal entry worksheet < 1 2 3 Note: Enter debits before credits. Transaction 6 Record the payment of liquidation expenses. Record entry 4 5 [o 6 General Journal Clear entry 7 Debit Credit View general journal > Journal entry worksheet < 1 2 3 4 5 6 Record the entry for final cash payments made to partners based on ending capital balances. Note: Enter debits before credits. Transaction 7 Record entry General Journal 7 Clear entry Debit Credit View general journal The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its business property. A balance sheet drawn up at this time shows the following account balances: Cash Noncash assets. Total assets $ 71,000 291,000 $362,000 Liabilities Frick, capital (60%) Wilson, capital (20%) Clarke, capital (20%) Total liabilities and capital Part A Prepare a predistribution plan for this partnership. Part B The following transactions occur in liquidating this business: $ 39,000 177,000 47,000 99,000 $362,000 1. Distributed safe payments of cash immediately to the partners. Liquidation expenses of $9,000 are estimated as a basis for this computation. 2. Sold noncash assets with a book value of $118,000 for $71,000. 3. Paid all liabilities. 4. Distributed safe payments of cash again. 5. Sold remaining noncash assets for $63,000. 6. Paid actual liquidation expenses of $7,000 only. 7. Distributed remaining cash to the partners and closed the financial records of the business permanently. Produce a final statement of liquidation for this partnership using the predistribution plan to determine payments of cash to partners. The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its business property. A balance sheet drawn up at this time shows the following account balances: Cash Noncash assets. Total assets $ 71,000 291,000 $362,000 Liabilities Frick, capital (60%) Wilson, capital (20%) Clarke, capital (20%) Total liabilities and capital Part A Prepare a predistribution plan for this partnership. Part B The following transactions occur in liquidating this business: $ 39,000 177,000 47,000 99,000 $362,000 1. Distributed safe payments of cash immediately to the partners. Liquidation expenses of $9,000 are estimated as a basis for this computation. 2. Sold noncash assets with a book value of $118,000 for $71,000. 3. Paid all liabilities. 4. Distributed safe payments of cash again. 5. Sold remaining noncash assets for $63,000. 6. Paid actual liquidation expenses of $7,000 only. 7. Distributed remaining cash to the partners and closed the financial records of the business permanently. Produce a final statement of liquidation for this partnership using the predistribution plan to determine payments of cash to partners. Produce a final statement of liquidation for this partnership using the predistribution plan to determine payments of cash to partners. Part C Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation. Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare a predistribution plan for this partnership. Frick, Capital Beginning balances Assumed loss of Schedule 1 Step one balances Assumed loss of Schedule 2 Step two balances Assumed loss of Schedule 3 Step three balances 0 0 0 Wilson, Capital 0 0 0 Clarke, Capital 0 0 Produce a final statement of liquidation for this partnership using the predistribution plan to determine payments of cash to partners. Part C Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation. Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare a predistribution plan for this partnership. Frick, Capital Beginning balances Assumed loss of Schedule 1 Step one balances Assumed loss of Schedule 2 Step two balances Assumed loss of Schedule 3 Step three balances 0 0 0 Wilson, Capital 0 0 0 Clarke, Capital 0 0 Required A Required B Produce a final statement of liquidation for this partnership using the predistribution plan to determine payments of cash to partners. (Do not round intermediate calculations.) Beginning balances Distribution Updated balances Noncash assets sold Updated balances Liabilities paid Updated balances First (remainder of first distribution) Next Next Required C Updated balances Noncash assets sold Updated balances Liquidation expenses paid Updated balances FRICK, WILSON, AND CLARKE Statement of Partnership Liquidation Final Balances Final distribution based on ending capital account balances Ending balance Cash $ 71,000 $ 71,000 $ 71,000 $ 71,000 Noncash Assets $ 291,000 $ 39,000 $ $ 291,000 $ 39,000 $ Liabilities $ 291,000 $ 39,000 $ $ 291,000 $ 39,000 $ $ 71,000 $ 291,000 $ 39,000 $ 71,000 $ 291,000 $ 71,000 $ 291,000 Frick, Capital (60%) $ 71,000 $ 291,000 EA $ 39,000 Clarke, Wilson, Capital Capital (20%) (20%) 177,000 $ 47,000 $ 99,000 $ 39,000 $ 177,000 $ 47,000 $ 99,000 177,000 $ 47,000 $ 99,000 177,000 $ 47,000 $ 99,000 $ 39,000 $ 177,000 $ 47,000 $ 99,000 177,000 $ 47,000 $ 99,000 177,000 $ 47,000 177,000 $ 47,000 $ 99,000 $ 99,000 Required A Required B Produce a final statement of liquidation for this partnership using the predistribution plan to determine payments of cash to partners. (Do not round intermediate calculations.) Beginning balances Distribution Updated balances Noncash assets sold Updated balances Liabilities paid Updated balances First (remainder of first distribution) Next Next Required C Updated balances Noncash assets sold Updated balances Liquidation expenses paid Updated balances FRICK, WILSON, AND CLARKE Statement of Partnership Liquidation Final Balances Final distribution based on ending capital account balances Ending balance Cash $ 71,000 $ 71,000 $ 71,000 $ 71,000 Noncash Assets $ 291,000 $ 39,000 $ $ 291,000 $ 39,000 $ Liabilities $ 291,000 $ 39,000 $ $ 291,000 $ 39,000 $ $ 71,000 $ 291,000 $ 39,000 $ 71,000 $ 291,000 $ 71,000 $ 291,000 Frick, Capital (60%) $ 71,000 $ 291,000 EA $ 39,000 Clarke, Wilson, Capital Capital (20%) (20%) 177,000 $ 47,000 $ 99,000 $ 39,000 $ 177,000 $ 47,000 $ 99,000 177,000 $ 47,000 $ 99,000 177,000 $ 47,000 $ 99,000 $ 39,000 $ 177,000 $ 47,000 $ 99,000 177,000 $ 47,000 $ 99,000 177,000 $ 47,000 177,000 $ 47,000 $ 99,000 $ 99,000 Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 Record the entry for initial cash payments made to partners in accordance with predistribution plan. Note: Enter debits before credits. Transaction 1 4 5 6 7 Record entry General Journal Clear entry Debit Credit View general journal Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 Record the entry for initial cash payments made to partners in accordance with predistribution plan. Note: Enter debits before credits. Transaction 1 4 5 6 7 Record entry General Journal Clear entry Debit Credit View general journal Journal entry worksheet 1 2 Transaction 2 3 Record the allocation of losses to partners on sale of noncash assets. Note: Enter debits before credits. Record entry 4 5 6 7 General Journal Clear entry Debit Credit View general journal > Journal entry worksheet 1 2 Transaction 2 3 Record the allocation of losses to partners on sale of noncash assets. Note: Enter debits before credits. Record entry 4 5 6 7 General Journal Clear entry Debit Credit View general journal > Journal entry worksheet < 1 2 3 Record the extinguishment of all partnership liabilities. Note: Enter debits before credits. Transaction 3 Record entry 4 5 6 7 General Journal Clear entry Debit Credit View general journal > Journal entry worksheet < 1 2 3 Record the extinguishment of all partnership liabilities. Note: Enter debits before credits. Transaction 3 Record entry 4 5 6 7 General Journal Clear entry Debit Credit View general journal > Journal entry worksheet < 1 2 3 Note: Enter debits before credits. Transaction 4 Record the entry for cash payments made to partners in accordance with predistribution plan. Record entry 5 General Journal 6 7 Clear entry Debit Credit View general journal > Journal entry worksheet < 1 2 3 Note: Enter debits before credits. Transaction 4 Record the entry for cash payments made to partners in accordance with predistribution plan. Record entry 5 General Journal 6 7 Clear entry Debit Credit View general journal > Journal entry worksheet < 1 2 3 4 Note: Enter debits before credits. Transaction 5 Record entry 5 Record the allocation of losses to partners on sale of remaining noncash assets. General Journal 6 Clear entry 7 Debit Credit View general journal Journal entry worksheet < 1 2 3 4 Note: Enter debits before credits. Transaction 5 Record entry 5 Record the allocation of losses to partners on sale of remaining noncash assets. General Journal 6 Clear entry 7 Debit Credit View general journal Journal entry worksheet < 1 2 3 Note: Enter debits before credits. Transaction 6 Record the payment of liquidation expenses. Record entry 4 5 [o 6 General Journal Clear entry 7 Debit Credit View general journal > Journal entry worksheet < 1 2 3 Note: Enter debits before credits. Transaction 6 Record the payment of liquidation expenses. Record entry 4 5 [o 6 General Journal Clear entry 7 Debit Credit View general journal > Journal entry worksheet < 1 2 3 4 5 6 Record the entry for final cash payments made to partners based on ending capital balances. Note: Enter debits before credits. Transaction 7 Record entry General Journal 7 Clear entry Debit Credit View general journal Journal entry worksheet < 1 2 3 4 5 6 Record the entry for final cash payments made to partners based on ending capital balances. Note: Enter debits before credits. Transaction 7 Record entry General Journal 7 Clear entry Debit Credit View general journal
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Related Book For
Advanced Accounting
ISBN: 978-1259444951
13th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupni
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