Question

someone please help me out i will really apperacite it and please answer the whole question i really request you

The partnership of Seymour, Packard, & Malone has experienced operating losses for three consecutive years. The partners who have shared profits and losses in the ratio of Seymour, 15%; Packard, 60%; and Malone, 25% are liquidating the business. They ask you to analyze the effects of liquidation. They present the following condensed partnership balance sheet at December 31, 2018: Assets $ 59,000 Cash Non-cash Assets SEYMOUR, PACKARD, & MALONE Balance Sheet December 31, 2018 Liabilities $ 28,000 Accounts Payable 120,000 Partners' Equity Seymour, Capital Packard, Capital Malone, Capital Total Partners' Equity S 148,000 Total Liabilities and Partners' Equity 25,000 41,000 23,000 89,000 $ 148,000 Total Assets Requirements 1. Assume the non-cash assets are sold for $50,000. 2. Prepare the liquidation schedule (model used in class or on page 656 of text) A) Journalize the sale of the non-cash assets. B) Journalize the gain or loss on sale. C) How much cash will Malone receive, if any? Note : Packard is insolvent and has no cash in his personal bank account.

Answer 1

Seymour, Packard & Malone TOURNAL Particular Dave 31 Dec 50,000 70,000 Cash Loss on Dispocal To Non Cash Asset (Being record sale of non cash astel) 120,000 31 Dec tosoo 42000 17,500 70,000 31 Dec Seymour (10,000 x 15%) Packard 0,000 x 60%) Malone (79,000 X257) To Los on Disposal (Being allocate loss) Acconts Payable To Cash (Being payment of of liability Seymour Packard Malone 59,000 59,000 31 Dec 5337 8753 4910 TO Cash 19000 (Being cash Distributed based on pas tejests Capital)