50.1K

Verified Solution

Link Copied!

A.

B.

C.

Exercises G Help Save & Exit Sub The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its business property. A balance shee drawn up at this time shows the following account balances: Cash Noncash assets $ 66,000 273,000 Liabilities Frick, capital (60%) Wilson, capital (208) Clarke, capital (20%) $ 37,000 165,000 44,000 93,000 $339,000 Total assets $339,000 Total liabilities and capital Part A Prepare a predistribution plan for this partnership Part B The following transactions occur in liquidating this business: 1. Distributed cash based on safe capital balances immediately to the partners. Liquidation expenses of $10,000 are estimated as a basis for this computation. 2. Sold noncash assets with a book value of $112,000 for $66,000. 3. Paid all liabilities. 4. Distributed cash based on safe capital balances again. 5. Sold remaining noncash assets for $60,000. Paid actual liquidation expenses of $8,000 only. 7. Distributed remaining cash to the partners and closed the financial records of the business permanently. Produce a final statement of liquidation for this partnership using the predistribution plan to determine payments of cash to based on safe capital balances. Part C Prepare lournal entries to record the liauidation transactions reflected in the final statement of liauidation KPrey 2 of 2 Next>

Answer & Explanation Solved by verified expert

See Answer