) 168,000 Wilson, capital (20%) 45,000 Clarke, capital (20%) 95,000 Total assets $ 348,000 Total liabilities and capital $ 348,0
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The
| Cash | $ | 69,000 | Liabilities | $ | 40,000 | |
| Noncash assets | 279,000 | Frick, capital (60%) | 168,000 | |||
| Wilson, capital (20%) | 45,000 | |||||
| Clarke, capital (20%) | 95,000 | |||||
| Total assets | $ | 348,000 | Total liabilities and capital | $ | 348,000 |
Part A
Prepare a predistribution plan for this partnership.
Prepare a predistribution plan for this partnership.
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- The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its business property. A balance sheet drawn up at this time shows the following account balances: Cash $ 70,000 Liabilities $ 38,000 Noncash assets 297,000 Frick, capital (60%) 180,000 Wilson, capital (20%) 48,000 Clarke, capital (20%) 101,000 Total assets $ 367,000 Total liabilities and capital $ 367,000 Part A Prepare a predistribution plan for this partnership. Part B The following transactions occur in liquidating this business: Distributed safe payments of cash immediately to the partners. Liquidation expenses of $10,000 are estimated as a basis for this computation. Sold noncash assets with a book value of $120,000 for $70,000. Paid all liabilities. Distributed safe payments of cash again. Sold remaining noncash assets for $64,000. Paid actual liquidation expenses of $8,000 only. Distributed remaining cash to the…The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its business property. A balance sheet drawn up at this time shows the following account balances: Cash $ 64,000 Liabilities $ 44,000 Noncash assets 225,000 Frick, capital (60%) 132,000 Wilson, capital (20%) 36,000 Clarke, capital (20%) 77,000 Total assets $ 289,000 Total liabilities and capital $ 289,000 Part A Prepare a predistribution plan for this partnership. Part B The following transactions occur in liquidating this business: Distributed safe payments of cash immediately to the partners. Liquidation expenses of $9,000 are estimated as a basis for this computation. Sold noncash assets with a book value of $96,000 for $64,000. Paid all liabilities. Distributed safe payments of cash again. Sold remaining noncash assets for $52,000. Paid actual liquidation expenses of $7,000 only. Distributed remaining cash to the…The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its business property. A balance sheet drawn up at this time shows the following account balances: Cash $ 60,000 Liabilities $ 40,000 Noncash assets 219,000 Frick, capital (60%) 129,000 Wilson, capital (20%) 35,000 Clarke, capital (20%) 75,000 Total assets $279,000 Total liabilities and capital $279,000 Part A Prepare a predistribution plan for this partnership. Part B The following transactions occur in liquidating this business: Distributed safe payments of cash immediately to the partners. Liquidation expenses of $8,000 are estimated as a basis for this computation. Sold noncash assets with a book value of $94,000 for $60,000. Paid all liabilities. Distributed safe payments of cash again. Sold remaining noncash assets for $51,000. Paid actual liquidation expenses of $6,000 only. Distributed remaining cash to the partners and closed the financial records of the business permanently.…
- The partnership of Bauer, Ohtani, and Souza has elected to cease all operations and liquidate its business property. A balance sheet drawn up at this time shows the following account balances: Cash Noncash assets $ 66,000 273,000 Liabilities Bauer, capital (60%) Ohtani, capital (20%) Souza, capital (20%) $ 37,000 165,000 44,000 93,000 Total assets $ 339,000 Total liabilities and capital $ 339,000 Required: Part A Prepare a predistribution plan for this partnership. Part B es The following transactions occur in liquidating this business: 1. Distributed safe payments of cash immediately to the partners. Liquidation expenses of $10,000 are estimated as a basis for this computation. 2. Sold noncash assets with a book value of $112,000 for $66,000. 3. Paid all liabilities.. 4. Distributed safe payments of cash again. 5. Sold remaining noncash assets for $60,000. 6. Paid actual liquidation expenses of $8,000 only. 7. Distributed remaining cash to the partners and closed the financial records…The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its business property. A balance sheet drawn up at this time shows the following account balances: Cash - $66,000 Noncash - $231,000 Liabilities - $46,000 Frick, capital (60%) - $135,000 Wilson, capital (20%) - $37,000 Clarke, capital (20%) - $79,00 Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation.The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its business property. A balance sheet drawn up at this time shows the following account balances: Cash - $66,000 Noncash - $231,000 Liabilities - $46,000 Frick, capital (60%) - $135,000 Wilson, capital (20%) - $37,000 Clarke, capital (20%) - $79,000 The following transactions occured in liquidating its business: Distributed safe payments of cash immediately to the partners. Liquidation expenses of $10,000 are estimated as a basis for this computation. Sold noncash assets with a book value of $98,000 for $66,000. Paid all liabilities. Distributed safe payments of cash again. Sold remaining noncash assets for $53,000. Paid actual liquidation expenses of $8,000 only. Distributedremainingcashtothepartnersandclosedthefinancialrecordsofthebusinesspermanently. Produce a final statement of liquidation for this partnership using the predistribution plan to determine payments of…
- ABC partnership whose owners consist Ateng, Bagio and Cecep share profits with a ratio of 5: 3: 2. On May 31, 2018 The Fellowship was liquidated. Statement of financial position ahead of liquidation as follows: Equipment Accumulated Depreciation Inventory Account Receivable Cash Total ABC Firm Financial Position Statement May 31 2018 (in $) 42,000 Ateng, Capital (11,000) Bagio, Capital 99,000 Cecep, Capital 44,000 Liability 25,000 199,000 Total 50,000 30,000 20,000 99,000 Cash is used for payment of obligations and the remainder distributed to allies on each end of the month except $3,000 just in case. . If there are allies who have a capital deficit assumed t is capable of paying Non-cash realization as follows: a. June: equipment whose acquisition price is $ 22,000 and book value is $ 16,000 is sold with price $ 12,000. Inventory whose acquisition price is $ 50,000 is sold for $ 35,000 c. September: remaining inventory sold for $ 30,000; paid load liquidation $5,000 199,000 b.…The CPA Partnership operated by Cook, Parks, and Argo is being liquidated. A balance sheet prepared at this stage in their liquidation process is presented below. Cash $37,000 Liabilities $24,000 Other Assets 52,000 Parks, Loan 9,000 Cook, Capital 31,000 Parks, Capital 10,000 Argo, Capital 15,000 Total $89,000 Total $89,000 The partners share profits and losses 30% (Cook), 50% (Parks), and 20% (Argo). The partners are all personally insolvent. (a) The partners wish to distribute the $37,000 in cash. Record in journal entry form the distribution of the available cash. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit…ABC Co. is undergoing liquidation. The following are the account balances after all the non-cash assets were sold: 50,000 Liabilities A, Capital (30%) B, Capital (30%) C, Capital (40%) Cash 120,000 90,000 (60,000) (100,000) The personal assets and liabilities of the partners are as follows: Personal assets 80,000 100,000 192,000 Personal liabilities 90,000 61,000 80,000 A B C wants to make an additional contribution of only P70,000, which A is refuting. If the doctrine of marshaling of assets is followed, how much of A's P90,000 equity would appear to be recoverable? a. 90,000 b. 79,000 c. 81,000 d. 0
- A. After several years of operations, the partnership of Arenas, Dulay and Laurente is to be liquidated. After making the closing entries on June 30, 2018, the following accounts remained open: Account Title Debit Credit Cash P 50,000 Non-cash Assets 2,350,000 Liabilities 400,000 Arenas, Capital 900,000 Dulay, Capital 500,000 Laurente, Capital 600,000 The non-cash assets are sold for P2,650,000. Profits and losses are shared equally. Prepare a Statement of Partnership Liquidation and the entries to record the following: 1. Sale of all non-cash assets 2. Distribution of gain on realization to the partners 3. Payment of the liabilitites 4. Distribution of cash to the partnersThe CPA Partnership operated by Cook, Parks, and Argo is being liquidated. A balance sheet prepared at this stage in their liquidation process is presented below. Cash $40,000 Liabilities $25,000 Other Assets 50,000 Parks, Loan 10,000 Cook, Capital 30,000 Parks, Capital 10,000 Argo, Capital 15,000 Total $90,000 Total $90,000 The partners share profits and losses 30% (Cook), 50% (Parks), and 20% (Argo). The partners are all personally insolvent. Required: A. The partners wish to distribute the $40,000 in cash. Record in journal entry form the distribution of the available cash. B. Record in journal entry form the completion of the liquidation process, assuming that the other assets of $50,000 are sold for $15,000. Please dont provide solution with image thank youThe CPA Partnership operated by Cook, Parks, and Argo is being liquidated. A balance sheet prepared at this stage in their liquidation process is presented below. Cash $40,000 Liabilities $25,000 Other Assets 50,000 Parks, Loan 10,000 Cook, Capital 30,000 Parks, Capital 10,000 Argo, Capital 15,000 Total $90,000 Total $90,000 The partners share profits and losses 30% (Cook), 50% (Parks), and 20% (Argo). The partners are all personally insolvent. Required: A. The partners wish to distribute the $40,000 in cash. Record in journal entry form the distribution of the available cash. B. Record in journal entry form the completion of the liquidation process, assuming that the other assets of $50,000 are sold for $15,000.