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 liquidationas follows:EquipmentAccumulated DepreciationInventoryAccount ReceivableCashTotalABC FirmFinancial Position StatementMay 31 2018(in $)42,000 Ateng, Capital(11,000) Bagio, Capital99,000 Cecep, Capital44,000 Liability25,000199,000Total50,00030,00020,00099,000Cash is used for payment of obligations and the remainder distributed to allies on eachend of the month except $3,000 just in case. . If there are allies who have a capital deficitassumed t is capable of payingNon-cash realization as follows:a. June: equipment whose acquisition price is $ 22,000 and book value is $ 16,000 is soldwith price $ 12,000. Inventory whose acquisition price is $ 50,000 is sold for $35,000c. September: remaining inventory sold for $ 30,000; paid loadliquidation $5,000199,000b. August: successfully billed receivables $ 40,000 remainder removed; equipment still availablesold for $8,000, found new liabilities of $ 4,000Requested:1. Prepare the liquidation calculation schedule/liquidasid report 2. Journalnecessary.

1. Calculate the Liquidation as follows:Calculate the loss on sale of equipment for June as…

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 99,000 199,000

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 99,000 199,000

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter20: Corporations: Distributions In Complete Liquidation And An Overview Of Reorganizations

Section: Chapter Questions

Problem 35P

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