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 | $ | 66,000 | Liabilities | $ | 43,000 | |
Noncash assets | 243,000 | Frick, capital (60%) | 144,000 | |||
Wilson, capital (20%) | 39,000 | |||||
Clarke, capital (20%) | 83,000 | |||||
Total assets | $ | 309,000 | Total liabilities and capital | $ | 309,000 | |
Part A
Prepare a predistribution plan for this partnership
Part B
The following transactions occur in liquidating this business:
Produce a final statement of liquidation for this partnership using the predistribution plan to determine payments of cash to partners based on safe capital balances.
Part C
Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation.
Hence Total Partners distribution
Frick $74165.41
Willson $20086.46
Cleark $42748.11
The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its...
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 $ 66,000 Liabilities $ 46,000 Noncash assets 231,000 Frick, capital (60%) 135,000 Wilson, capital (20%) 37,000 Clarke, capital (20%) 79,000 Total assets $ 297,000 Total liabilities and capital $ 297,000 Part A Prepare a predistribution plan for this partnership Part B The following transactions occur in liquidating this...
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 $ 69,000 Liabilities $ 40,000 Noncash assets 285,000 Frick, capital (60%) 171,000 Wilson, capital (20%) 46,000 Clarke, capital (20%) 97,000 Total assets $ 354,000 Total liabilities and capital $ 354,000 Part A Prepare a predistribution plan for this partnership Part B The following transactions occur in liquidating this...
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 $ 71,000 Liabilities $ 39,000 Noncash assets 291,000 Frick, capital (60%) 177,000 Wilson, capital (20%) 47,000 Clarke, capital (20%) 99,000 Total assets $ 362,000 Total liabilities and capital $ 362,000 Part A Prepare a predistribution plan for this partnership Part B The following transactions occur in liquidating this...
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 $ 64,000 Liabilities $ 38,000 Noncash assets 261,000 Frick, capital (60%) 156,000 Wilson, capital (20%) 42,000 Clarke, capital (20%) 89,000 Total assets $ 325,000 Total liabilities and capital $ 325,000 Part A Prepare a predistribution plan for this partnership Part B The following transactions occur in liquidating this...
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 $ 60,000 Liabilities $ 43,000 Noncash assets 201,000 Frick, capital (60%) 117,000 Wilson, capital (20%) 32,000 Clarke, capital (20%) 69,000 Total assets $ 261,000 Total liabilities and capital $ 261,000 Part A Prepare a predistribution plan for this partnership Part B The following transactions occur in liquidating this...
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 $ 51,000 Liabilities $ 37,000 Noncash assets 183,000 Frick, capital (60%) 105,000 Wilson, capital (20%) 29,000 Clarke, capital (20%) 63,000 Total assets $234,000 Total liabilities and capital $234,000 Part A Prepare a predistribution plan for this partnership Part B The following transactions occur in liquidating this business: 1....
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 $ 65,000 Liabilities $ 42,000 Noncash assets 237,000 Frick, capital (60%) 141,000 Wilson, capital (20%) 38,000 Clarke, capital (20%) 81,000 Total assets $ 302,000 Total liabilities and capital $ 302,000 Part A Prepare a predistribution plan for this partnership Part B The following transactions occur in liquidating this...
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 $53,000 Liabilities $39,000 NonCash assets 189,000 Frick, capital (60%) 108,000 Wilson, capital (20%) 30,000 Clarke, capital (20%) 65,000. Total assets $242,000 Total liabilities and capital $242,000 Part A Prepare a pre-distribution plan for this partnership. Part B The following transactions occur in liquidating this business: 1. Distributed safe...
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 $ 66,000 Liabilities $ 46,000 Noncash assets 231,000 Frick, capital (60%) 135,000 Wilson, capital (20%) 37,000 Clarke, capital (20%) 79,000 Total assets $ 297,000 Total liabilities and capital $ 297,000 Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation. 1 Record the...
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 $ 64,000 249,000 Liabilities Frick, capital (604) Wilson, capital (208) Clarke, capital (209) Total liabilities and capital $ 38,000 150,000 40,000 85,000 $313,000 Total assets $313,000 Part A Prepare a predistribution plan for this partnership. Required A Required B Required a Prepare a predistribution plan for...