Required: 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.
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- On January 1, the partners of Mori, Lux, and Khan (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: General Journal Cash Accounts receivable Inventory Machinery and equipment, net Mori, loan Accounts payable Lux, loan Mori, capital Lux, capital Khan, capital Totals Debit $32,000 94,000 80.0001 239,000 58.000 Credit $ 89,000 48,000 152,000 104,000 88,000 $481,000 $ 481,000 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 $65,000 of the accounts receivable; the balance is deemed uncollectible. Received $52,000 for the entire inventory. Paid $8,000 in liquidation expenses. Paid $72,000 to…On January 1, the partners of Mori, Lux, and Khan (who share profits and losses in the ratio of 5:32, respectively) decide to terminate operations and liquidate their partnership. The trial balance at this date follows: General Journal Cash Accounts receivable Inventory Debit $24,000 78.000 64,000 227,000 42,000 Credit Machinery and equipment, net Mori, loan Accounts payable Lux, loan Mori, capital Lux, capital Khan, capital Totals $409,000 $77,000 32,000 124,000) 96,000 80,000 $409.000 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 Required: Collected $57,000 of the accounts receivable; the balance is deemed uncollectible Received $44,000 for the entire inventory Paid $8,000 in liquidation expenses. Paid $66,000…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 February $ March Debit 36,000 102,000 88,000 225,000 66,000 $ Credit 95,000 56,000 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 166,000 108,000 92,000 $ 517,000 $ 517,000 Collected $69,000 of the accounts receivable; the balance is deemed uncollectible. Received $56,000 for the entire inventory. Paid $4,000 in liquidation expenses. Paid $90,000 to the outside…
- 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 $ 32,000 94,000 Credit 80,000 217,000 58,000 $ 89,000 48,000 152,000 104,000 88,000 $ 481,000 $ 481,000 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 $65,000 of the accounts receivable; the balance is deemed uncollectible. Received $52,000 for the entire inventory. Paid $8,000 in liquidation expenses. Paid $80,000 to the outside…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 $ 32,000 94,000 Credit 80,000 217,000 58,000 $ 89,000 48,000 152,000 104,000 88,000 $ 481,000 $ 481,000 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 $65,000 of the accounts receivable; the balance is deemed uncollectible. Received $52,000 for the entire inventory. Paid $8,000 in liquidation expenses. Paid $80,000 to the outside…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: Debit Credit Cash $ 27,000 Accounts receivable 84,000 Inventory 70,000 Machinery and equipment, net 207,000 Van, loan 48,000 Accounts payable $ 89,000 Bakel, loan 38,000 Van, capital 127,000 Bakel, capital 99,000 Cox, capital 83,000 Totals $ 436,000 $ 436,000 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 Collected $60,000 of the accounts receivable; the balance is deemed uncollectible. Received $47,000 for…
- 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: Debit Credit Cash $ 24,000 Accounts receivable 78,000 Inventory 64,000 Machinery and equipment, net 201,000 Van, loan 42,000 Accounts payable $ 77,000 Bakel, loan 32,000 Van, capital 124,000 Bakel, capital 96,000 Cox, capital 80,000 Totals $ 409,000 $ 409,000 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 Collected $57,000 of the accounts receivable; the balance is deemed uncollectible. Received $44,000 for…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: Debit Credit Cash $ 23,000 Accounts receivable 76,000 Inventory 62,000 Machinery and equipment, net 199,000 Van, loan 40,000 Accounts payable $ 73,000 Bakel, loan 30,000 Van, capital 123,000 Bakel, capital 95,000 Cox, capital 79,000 Totals $ 400,000 $ 400,000 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 Collected $56,000 of the accounts receivable; the balance is deemed uncollectible. Received $43,000 for…On January 1, 20X2, the partners of Allen, Brown, and Cox, who share profits and losses in the ratio of 5:3:2, respectively, decide to liquidate their partnership. The partnership trial balance at this date is as follows: Debit CreditCash P 18,000Accounts receivable 66,000Inventory 52,000Machinery and equipment, net 189,000Allen, loan 30,000Accounts payable P 53,000Brown, loan 20,000Allen, capital 118,000Brown, capital…
- On January 1, 20X2, partners ABC, BCD and CDE, who share profits and losses in the ratio of 5:3:2, respectively, decided to liquidate their partnership. The partnership trial balance at this date is as follows: Debit Credit Cash Accounts receivable 18,000 66,000 52,000 Inventory Machinery and equipment, net 189,000 30,000 ABC, loan Accounts payable 53,000 20,000 BCD, loan 118,000 ABC, capital BCD, capital CDE, capital Totals Pr 90,000 74,000 355,000 355,000 The partners plan a program of piecemeal conversion of assets in order 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. The following liquidation transactions occurred in January P51,000 was collected on accounts receivable; the balance is uncollectible. P48,000 was received for the entire inventory. P2,000 liquidation expenses were paid. P50,000 was paid to outside creditors, after offset of a P3,000 credit…Ryan, Shaw, and Todd, who share in income and losses in the ratio of 4:2:4, decided to discontinue operations as April 30 and liquidate their partnership. After the accounts were closed on April 30, the following trial balance was prepared: Cash 8,100 Noncash Assets 70,600 Liabilities 27500 Ryan, Capital 23,300 Shaw, Capital 12,100 Todd Capital 15,800 Total 78,700 78,700 Between May 1 and May 18, the noncash assets were sold for $20,600, andthe liabilities were paid. Instructions 1. Assuming that the partner with the capital deficiency pays the entire amount owed to the partnership, prepare a statement of partnership liquidation. 2. Journalize the entries to record (a) the sale of the assets, (b) the division of loss on the sale of the assets, (c) the payment of the liabilities, (d) the receipt of the deficiency, and the distribution of cash to the partners.The Pen, Evan, and Torves Partnership has asked you to assist in winding-up its business affairs. You compile the following information: 1. The partnership's trial balance on June 30, 20X1, Is Cash Accounts Receivable (net) Inventory Plant and Equipment (net) Accounts Payable Pen, Capital Evan, Capital Torves, Capital Total Profit and loss percentages Preliquidation capital balances Loss absorption potential (capital balances / loss percent) Decrease highest LAP to next highest: Debit $ 6,800 30,000 22,000 99,700 Decrease LAPS to next highest: $ 158,500 2. The partners share profits and losses as follows: Pen, 50 percent; Evan, 30 percent; and Torves, 20 percent. 3. The partners are considering an offer of $108,000 for the firm's accounts receivable, Inventory, and plant and equipment as of June 30. The $108,000 will be paid to creditors and the partners in Installments, the number and amounts of which are to be negotiated. Required: Prepare a cash distribution plan as of June 30,…