On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership. Cash 80,000 240,000 Accounts receivable Inventory Equipment Total 480,000 1,200,000 2,000,000 Accounts payable Payable to B A Capital (20%) 400,000 B. Capital (30%) 600,000 C. Capital (50%) 800,000 Total 2,000,000 Information on the conversion of non-cash assets is as follows: • 120,000 80,000 • $40,000 was collected on accounts receivable; the balance is uncollectible • $20,000 was received for the entire inventory. • The equipment was sold for $200,000./ 8,000 liquidation expenses were paid. 108,000 was paid to outside creditors, after offset of a $12,000 credit. memorandum received on January 2, 20x1. All of the partners are personally solvent. How much did B receive from the settlement of his interest in the partnership? •

On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership. Cash 80,000 240,000 Accounts receivable Inventory Equipment Total 480,000 1,200,000 2,000,000 Accounts payable Payable to B A Capital (20%) 400,000 B. Capital (30%) 600,000 C. Capital (50%) 800,000 Total 2,000,000 Information on the conversion of non-cash assets is as follows: • 120,000 80,000 • $40,000 was collected on accounts receivable; the balance is uncollectible • $20,000 was received for the entire inventory. • The equipment was sold for $200,000./ 8,000 liquidation expenses were paid. 108,000 was paid to outside creditors, after offset of a $12,000 credit. memorandum received on January 2, 20x1. All of the partners are personally solvent. How much did B receive from the settlement of his interest in the partnership? •

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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