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Adams, Peters, and Blake share profits and losses for their APB Partnership in a ratio...

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Accounting

Adams, Peters, and Blake share profits and losses for their APB Partnership in a ratio of 2:3:5. When they decide to liquidate, the balance sheet is as follows:

Assets Liabilities and Capital
Cash $ 49,000 Liabilities $ 45,500
Adams, Loan 11,800 Adams, Capital 64,900
Other Assets 218,000 Peters, Capital 88,500
Blake, Capital 79,900
Total Assets $ 278,800 Total Liabilities and Equities $ 278,800

Liquidation expenses are expected to be negligible. No interest accrues on loans with partners after termination of the business. During the liquidation process for the APB Partnership, the following events occurred:

  1. During the first month of liquidation, noncash assets with a book value of $89,500 were sold for $68,000, and $22,500 of the liabilities were paid.
  2. During the second month, the remaining noncash assets were sold for $78,000. The loan receivable from Adams was collected, and the rest of the creditors were paid.
  3. Cash is distributed to partners at the end of each month.

Required:

Prepare a statement of partnership realization and liquidation with a schedule of safe payments to partners for the liquidation period. Please follow the practical guidelines when completing this worksheet.

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