Question

liquidate their partnership. Just prior to the liquidation, their balance sheet appeared as follows: Problem 11-3B Liquidation of a partnership LOS excel CHECK FIGURES: Cash to Ove: 34,706 Carto Olive 5.20 Cast Owe Poppy Sweethean, and Olive have always shared profit and losses in ratioThey recently decided to CHAPTER d. Cash to live Assets Sweethean and Olive October 15, 2020 Llaws $9.450 Accoyable 166.320 $175.770 Em Pappa Lynn Sweetbean, capital Ned Ove capital Total equity Totalities and equity 163,840 42,000 39.249 Equipment Accumulated depreciation - $40.600 Required Part 1 Under the assumption that the equipment is sold and the cash is distributed to the proper parties on October is, 2020, complete the schedule provided below. Ernie Lynn Ned Poppy. Sweetbean, Olive Capital Capital Capital Equipment Accounts Payable Cash Account balances October 15, 2020 Show the sale, the gain or loss allocation, and the distribution of the cash in each of the following unrelated cases: a. The equipment is sold for $189,000. b. The equipment is sold for $119,070. c. The equipment is sold for $50,820, and any partners with resulting deficits can and do pay in the amount of their deficits. d. The equipment is sold for $38,640, and the partners have no assets other than those invested in the business, Part 2 Prepare the entry to record the final distribution of cash assuming case (a) above, Problem 11-9B Liquidation of a partnership LOS

Answer 1

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Answer Part 1 (a) Account balances October 15,2020 Sale of equipment and divison of gain Balances after realization Payment to Account Payable Balances after payment to account payables Distribution of Cash In ratio of 3:1:1 Final Balances Cash $ 9,450 $ 189,000 $ 198,450 $ -39,690 $ 158,760 $ -158,760 S Equipment (net) $ 166,320 $ -166,320 $ $ $ $ $ Accounts Payable $ 39,690 $ $ 39,690 $ -39,690 $ $ $ Emmie Poppie + Lynn Sweetbean + capital capital $ 63,840 $ 42,000 $ 13,608 $ 4,536 $ 77,448 $ 46,536 $ $ $ 77,448 $ 46,536 $ -77,448 $ -46,536 $ $ Ned olive Capital $ 30,240 $ 4,536 $ 34,776 $ $ 34,776 $-34,776 $ W1 Answer Part 1 (b) Account balances October 15,2020 Sale of equipment and divison of loss Balances after realization Payment to Account Payable Balances after payment to account payables Distribution of Cash In ratio of 3:1:1 Final Balances Cash $ 9,450 $ 119,070 $ 128,520 $ -39,690 $ 88,830 $ -88,830 S Equipment (net) $ 166,320 $ -166,320 $ $ Accounts Payable $ 39,690 $ $ 39,690 $ -39,690 $ $ Emmie Poppie capital S 63,840 $ -28,350 $ 35,490 $ $ 35,490 $ -35,490 $ Lynn Sweetbean + capital $ 42,000 $ -9,450 $ 32,550 $ $ 32,550 $ -32,550 $ Ned olive Capital $ 30,240 $ 9,450 $ 20,790 $ $ 20,790 $-20,790 $ $ $ $ $ Answer Part 1 (c) Equipment (net) $ 166,320 $-166,320 $ $ Account balances October 15,2020 Sale of equipment and divison of loss Balances after realization Payment to Account Payable Balances after payment to account payables Poppie pays Deficiency Balance Distribution of Cash In ratio of 3:1 Final Balances Cash $ 9,450 $ 50,820 $ 60,270 $ 39,690 $ 20,580 $ 5,460 $ 26,040 $ -26,040 $ Accounts Payable $ 39,690 $ $ 39,690 $ -39,690 $ Emmie Poppie Lynn Sweetbean + capital capital $ 63,840 $ 42,000 $ -69,300 $ -23,100 $ -5,460 $ 18,900 $ $ $ -5,460 $ 18,900 $ 5,460 $ $ $ 18,900 $ $ -18,900 $ $ Ned olive Capital $ 30,240 $ -23,100 $ 7,140 $ $ 7,140 $ $ 7,140 $ -7,140 $ $ $ S $ $ $ $ Answer Part 1 (d) + Equipment (net) $ 166,320 $-166,320 $ $ Accounts Payable $ 39,690 $ $ 39,690 $ -39,690 $ Account balances October 15,2020 Sale of equipment and divison of loss Balances after realization Payment to Account Payable Balances after payment to account payables Allocation of Poppie's Deficiency in 1:1 Balance Allocation of Olive's Deficiency Balance Distribution of Cash In ratio of 1:1 Final Balances Cash $ 9,450 $ 38,640 $ 48,090 $ -39,690 $ 8,400 $ $ 8,400 $ $ 8,400 $ -8,400 $ wout Emmie Poppie capital $ 63,840 $ -76,608 $ -12,768 $ $ -12,768 $ 12,768 $ $ $ $ $ Lynn Sweetbean + capital $ 42,000 $ -25,536 $ 16,464 $ $ 16,464 $ -6,384 $ 10,080 $ -1,680 $ 8,400 $ -8,400 $ Ned olive Capital $ 30,240 $-25,536 $ 4,704 $ $ 4,704 $ -6,384 $ -1,680 $ 1,680 $ $ $ $ $ $ $ $ $ $ $ $ Credit Answer Part 2 Date Account Title and Explanation Debit Oct 15,2020 Emmie Poppie capital $ 77,448 Lynn Sweetbean capital $ 46,536 Ned olive Capital $ 34,776 Cash (To record final distribution of cash) $ 158,760