Question

After closing the accounts on July 1, prior to liquidating the partnership, the capital account balances of Gold, Porter, and Sims are $25,500, $36,000, and $16,200, respectively. Cash, noncash assets, and liabilities total $38,400, $66,900, and $27,600, respectively. Between July 1 and July 29, the noncash assets are sold for $53,700, the liabilities are paid, and the remaining cash is distributed to the partners. The partners share net income and loss in the ratio of 3:2:1.

Prepare a statement of partnership liquidation for the period July 1-29. Enter any subtractions (balance deficiencies, payments, cash distributions, divisions of loss, sale of assets) as negative numbers using a minus sign. If an amount is zero, enter in "0".

Cash +

Noncash Assets =

Liabilities +

Capital Gold (3/6) +

Capital Porter (2/6) +

Balances before realization	$	$	$	$	$	$
Sale of assets and division of loss	+
Balances after realization	$	$	$	$	$	$
Payment of liabilities
Balances after payment of liabilities	$	$	$	$	$	$
Cash distributed to partners
Final balances	$	$	$	$	$

Answer 1

	Cash +	Noncash Assets =	Liabilities +	Capital Gold (3/6) +	Capital Porter (2/6) +	Capital Sims (1/6)
Balances before realization	38400	66900	27600	25500	36000	16200
Sale of assets and division of loss	53700	-66900	0	-6600	-4400	-2200
Balances after realization	92100	0	27600	18900	31600	14000
Payment of liabilities	-27600	0	-27600	0	0	0
Balances after payment of liabilities	64500	0	0	18900	31600	14000
Cash distributed to partners	-64500	0	0	-18900	-31600	-14000
Final balances	0	0	0	0	0	0