ABC Corporation currently has $20,000 in cash, $30,000 in noncash assets, and liabilities of $35,000. The partners, Adrian, Batch, and Crenshaw, had capital balances of $5,000, $8,000, and $2,000, respectively. The partners share a profit and loss ratio of 1:1:3. The noncash assets were sold for $60,000. Complete the liquidation chart below. Statement of Partnership Liquidation Cash Noncash Assets Liabilities Capital Adrian Batch Crenshaw Balances before realization Sale of assets and division of loss or gain Balances after realization Payment of liabilities Balances after payment of liabilities Cash distributed to partners Final balances
ABC Corporation currently has $20,000 in cash, $30,000 in noncash assets, and liabilities of $35,000. The partners, Adrian, Batch, and Crenshaw, had capital balances of $5,000, $8,000, and $2,000, respectively.
The partners share a
|
Statement of |
||||||
|
|
Cash |
Noncash Assets |
Liabilities |
Capital |
||
|
|
|
|
|
Adrian |
Batch |
Crenshaw |
|
Balances before realization |
|
|
|
|
|
|
|
Sale of assets and division of loss or gain |
|
|
|
|
|
|
|
Balances after realization |
|
|
|
|
|
|
|
Payment of liabilities |
|
|
|
|
|
|
|
Balances after payment of liabilities |
|
|
|
|
|
|
|
Cash distributed to partners |
|
|
|
|
|
|
|
Final balances |
|
|
|
|
|
|
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
