Reference no: EM132961607

The CDG Carlos, Dan, and Gail Partnership has decided to liquidate as of December 1, 20X6. A balance sheet on the date follows:

CDG PARTNERSHIP
Balance Sheet
At December 1, 20X6

Assets

Cash $ 27,500
Accounts Receivable (net) 80,000
Inventories 105,000
Property, Plant and Equipment (net) 310,000
Total Assets $ 522,500
Liabilities and Capital

Liabilities:

Accounts Payable $ 277,500

Capital:
Carlos, Capital $ 125,000
Dan, Capital 55,000
Gail, Capital 65,000
Total Capital 245,000
Total Liabilities and Capital $ 522,500

Additional InformationEach partner's personal assets (excluding partnership capital interests) and personal liabilities as of December 1, 20X6, follow:

                                            Carlos                    Dan                    Gail
personal asset                         255000               305000         355000
personal liabilities                        232500               237500        332000
personal net worth =                      22500              67500            23000

• Carlos, Dan, and Gail share profits and losses in the ratio 20:40:40.
• CDG sold all noncash assets on December 10, 20X6, for $266,000.

Required:

Problem a. Prepare a statement of realization and liquidation for the CDG Partnership on December 10, 20X6. (Do not round your intermediate calculations. Round your final answers to the nearest whole dollar.)

Problem 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 assuming that no other events occurred in the 10-day period that changed any of the partners' personal assets and personal liabilities. (Round your answers to the nearest whole dollar.)