Reference no: EM132606211
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 $ 67,000
Liabilities $ 41,000
Noncash assets 267,000
Frick, capital (60%) 159,000
Wilson, capital (20%) 43,000
Clarke, capital (20%) 91,000
Total assets $ 334,000
Total liabilities and capital $ 334,000
Part A
Question 1: Prepare the predistribution plan for this partnership
Part B
The following transactions occur in liquidating this business:
- Distributed cash based on safe capital balances 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 $110,000 for $67,000.
- Paid all liabilities.
- Distributed cash based on safe capital balances again.
- Sold remaining noncash assets for $59,000.
- Paid actual liquidation expenses of $7,000 only.
- Distributed remaining cash to the partners and closed the financial records of the business permanently.
Question 2: Produce a final statement of liquidation for this partnership using the predistribution plan to determine payments of cash to partners based on safe capital balances.
Part C
Question 3: Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation.
|
How much is the full cost of the phone
: You want to buy a mobile phone and you opted for the option in which you will be paying Php 3,000 per month. How much is the full cost of the phone
|
|
Identify three volume based cost drivers
: Why a volume based cost driver is a poor base for allocating overhead in many companies? Identify three volume based cost drivers
|
|
What is the units-of-production depreciation
: During the period of March to May, the machine peroduced 100 tonnes of ice. What is the units-of-production depreciation during the said period
|
|
Compute austin sport actual return on plan assets
: During the year, contributions to the pension fund were $460,000, and benefits paid were $340,000. Compute Austin Sport's actual return on plan assets
|
|
Prepare the predistribution plan for the partnership
: Produce a final statement of liquidation for this partnership using the predistribution plan to determine payments of cash to partners
|
|
How much is the cost of the deferred payment
: You want to buy a mobile phone and you opted for the option in which you will be paying Php 3,000. How much is the cost of the deferred payment
|
|
What are the tax consequences for sonya
: The stock's fair market on August 4, 2020, is $2,000. Sonya sells the shares for $2,300 on December 8, 2020. What are the tax consequences for Sonya?
|
|
How much is the interest payment for the second month
: To start a pastry business for the coming yuletide season, you took a loan of Php 25,000. How much is the interest payment for the second month
|
|
NRS82005 Transformative Clinical Practices Assignment
: NRS82005 Transformative Clinical Practices Assignment Help and Solution, Southern Cross University - Assessment Writing Service
|