Required: Prepare a statement of partnership liquidation to determine the amount of cash that Bell would receive from the sale of partnership assets.
Required: Prepare a statement of partnership liquidation to determine the amount of cash that Bell would receive from the sale of partnership assets.
Chapter11: Partnerships: Distributions, Transfer Of Interests, And Terminations
Section: Chapter Questions
Problem 27P
Related questions
Question
H
Transcribed Image Text:A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are
divided on a 4:3.2.1 basis, respectively. Capital balances at the current time are
Bell, capital
Hardy, capital
Dennard, capital
Suddath, capital
Bell's creditors have filed a $23,000 claim against the partnership's assets. The partnership currently holds assets of $320,000 and
llabilities of $110,000. An Independent appraiser indicates that the assets can be sold for $200,000.
Required:
Prepare a statement of partnership liquidation to determine the amount of cash that Bell would receive from the sale of partnership
assets.
Note: Amounts to be deducted should be entered with a minus sign.
Balances
Sale of assets
Subtotal
Pay labilities
Subtotal
Allocate deficit
Subtotal
Distribute cash
Ending balances
$
$
3
$ 55,000
58,000
15,000
82,000
$
$
Cash
BELL, HARDY DENNARD, AND SUDDATH PARTNERSHIP
Statement of Partnership Liquidation (Hypothetical)
Bell, Capital
40%
55,000
48.000
103.000
103.000 $
S 103.000 $
103,000 $
Assets
0
Liabilities
10. $
0 $
$
10
03
03
R$
0
0
Hardy, Capital
30%
$
10 $
Q $
10
0
10
0
Dennard,
Capital 20%
S
5
S
0
Suddath,
Capital 10%
OS
0 $
3
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT