Lump-Sum Liquidation
The Carlos, Dan, and Gail (CDG) Partnership has decided to liquidate as of December 1, 20X6. A balance sheet as of December 1, 20X6, appears below:
CDG PARTNERSHIP Balance Sheet At December 1, 20X6 | ||
Assets |
|
|
Cash |
| $ 25,000 |
Accounts Receivable (net) |
| 75,000 |
Inventories |
| 100,000 |
Property, Plant, and Equipment (net) |
| 300,000 |
Total Assets |
| $500,000 |
Liabilities and Capital |
|
|
Liabilities: |
|
|
Accounts Payable |
| $270,000 |
Capital: |
|
|
Carlos, Capital | $120,000 |
|
Dan, Capital | 50,000 |
|
Gail, Capital | 60,000 |
|
Total Capital |
| 230,000 |
Total Liabilities and Capital |
| $500,000 |
Additional Information
1. The personal assets (excluding partnership capital interests) and personal liabilities of each partner as of December 1, 20X6, follow:
| Carlos | Dan | Gail |
Personal assets | $250,000 | $300,000 | $350,000 |
Personal liabilities | (230,000) | (240,000) | (325,000) |
Personal net worth | $ 20,000 | $ 60,000 | $ 25,000 |
2. Carlos, Dan, and Gail share profits and losses in the ratio 20:40:40.
3. All of the noncash assets were sold on December 10, 20X6, for $260,000.
Required
a. Prepare a statement of realization and liquidation for the CDG Partnership on December 10, 20X6.
b. Prepare a schedule of the net worth of each of the three partners as of December 10,2006, after the liquidation of the partnership is completed.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.