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Problem 15-20 (Algo) (LO 15-6) The following balance sheet is for a partnership in which...

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Accounting

Problem 15-20 (Algo) (LO 15-6)

The following balance sheet is for a partnership in which the partners have decided to terminate operations and liquidate assets. The partners estimate liquidation expenses will be $14,000.

Cash $ 120,000 Liabilities $ 70,000
Noncash assets 270,000 Arch, capital (40%) 120,000
Bibb, capital (20%) 60,000
Dao, capital (40%) 140,000
Total assets $ 390,000 Total liabilities and capital $ 390,000

Prepare a proposed schedule of liquidation to carry out a preliminary distribution of partnership assets at the date of termination. (Amounts to be deducted should be entered with a minus sign.)

ARCH, BIBB, AND DAO PARTNERSHIP
Proposed Schedule of Liquidation
Date of Termination
Cash Noncash Assets Liabilities Arch, Capital 40% Bibb, Capital 20% Dao, Capital 40%
Beginning balances
Pay liabilities
Max. liquidation expenses
Max. loss noncash assets
Initial safe payments

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