Reference no: EM13376703
The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidateits business property. A balance sheet drawn up at this time shows the following accountbalances:
Cash. . . . . . . . . . . . . . . . . . $ 48,000 Liabilities . . . . . . . . . . . . . . . . . . . $ 35,000
Noncash assets . . . . . . . . . . 177,000 Frick, capital (60%) . . . . . . . . . . . 101,000
Wilson, capital (20%) . . . . . 28,000
Clarke, capital (20%). . . . . . 61,000
Total assets . . . . . . . . . . . $225,000 Total liabilities and capital . . . . $225,000
The following transactions occur in liquidating this business:
- Distributed 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 $80,000 for $48,000.
- Paid all liabilities.
- Distributed safe capital balances again.
- Sold remaining noncash assets for $44,000.
- Paid liquidation expenses of $7,000.
- Distributed remaining cash to the partners and closed the financial records of the businesspermanently.
Produce a final schedule of liquidation for this partnership.