Question

Statement of Partnership Liquidation After the accounts are closed on April 10, prior to liquidating the partnership, the capital accounts of Zach Fairchild, Austin Lowes, and Amber Howard are $38,200, $6,900, and $31,200, respectively. Cash and noncash assets total $9,600 and $76,700, respectively. Amounts owed to creditors total $10,000. The partners share income and losses in the ratio of 1:1:2. Between April 10 and April 30, the noncash assets are sold for $40,700, the partner with the capital deficiency pays the deficiency to the partnership, and the liabilities are paid. Required: 1. Prepare a statement of partnership liquidation, indicating (a) the sale of assets and division of loss, (b) the payment of liabilities, (c) the receipt of the deficiency (from the appropriate partner), and (d) the distribution of cash. Enter any subtractions (balance deficiencies, payments, cash distributions, divisions of loss, sale of assets) as negative numbers using a minus sign. If there is no amount or an amount is zero, enter "0". Fairchild, Lowes, and How Statement of Partnership Liqu For Period April 10-30 Balances before realization 5 9 ,600 Sale of assets and division of 40,700 Balances after realization Payment of Babies Balances after payment of Receipt of deficiency Cash distributed to partners Final balances

Answer 1

+ Lowers Capital 1/4 | + Howard Capital 2/4 6,900.00 $ 31,200.00 $ -9,000.00 $ -18,000.00 $ -2,100.00 $ 13,200.00 Particulars Balances before realization Sale of assets and division of loss Balances after realization Payment of liabilities Balances after payment of liablities Receipt of deficiency Balances Cash distributed to partners Final balances Statement of partnership Liquidaton Cash | + Noncash Assets = Liabilities | + Fairchild, Capital 1/4 $ 9,600.00 $ 76,700.00 $ 10,000.00 $ 38,200.00 $ 40,700.00 $ -76,700.00 $ -9,000.00 $ 50,300.00 $ $ 10,000.00 29,200.00 $-10,000.00 $-10,000.00 $ 40,300.00 29,200.00 $ 2,100.00 $ 42,400.00 29,200.00 $-42,400.00 -29,200.00 $ $ $ 13,200.00 $ -2,100.00 2,100.00 $ 13,200.00 -13,200.00 Particulars Zach Fairchild Capital Amber Howard Capital Austin Lowers Capital DR $ $ 700.00 1,400.00 =2100*1/3 =2100*2/3 $ 2,100.00 Zach Fairchild Capital Amber Howard Capital Cash $ 29,200.00 $ 13,200.00 $ 42,400.00