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Produce a final schedule of liquidation for the partnership

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Reference no: EM132941634

The partnership of Edmonds, Beatty, and Elder 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 $105,600

Liabilities $77,000

Noncash assets 389,400

Frick, capital (60%) 222,200

Wilson, capital (20%) 61,600

Clarke, capital (20%) 134,200

Total assets $495,000

Total liabilities and capital $495,000

The following transactions occur in liquidating this business:

  • Distributed safe capital balances immediately to the partners. Liquidation expenses of $19,800 are estimated as a basis for this computation.
  • Sold noncash assets with a book value of $176,000 for $105,600.
  • Paid all liabilities.
  • Distributed safe capital balances again.
  • Sold remaining noncash assets for $96,800.
  • Paid liquidation expenses of $15,400.
  • Distributed remaining cash to the partners and closed the financial records of the business permanently.

Problem 1: Produce a final schedule of liquidation for this partnership.

Reference no: EM132941634

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