tion)eBook Show Me How Calculator Print Item After dlosing the accounts on July
ID: 2330614 • Letter: T
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tion)eBook Show Me How Calculator Print Item After dlosing the accounts on July 1, prior to liquidating the partnership, the capital account balances of Gold, Porter, and Sims are s35,400, $50,100, and $22,200, respectively Cash, noncash assets, and liabilities total $56,400, $93,000, and $41,700, respectively. Between July 1 and July 29, the noncash assets are sold for $74,400, the liabilities are paid, and the remaining cash is distributed to the partners. The partners share net income and loss in the ratio of 3:2:1. Prepare a statement of partnership liquidation for the period July 1-29. Enter any subtractions (balance deficiencies, payments, cash distributions, divisions of loss, sale of assets) as negative numbers using a minus sign. If an amount is zero, enter in "0. Gold, Porter, and Sims Statement of Partnership Liquidation for the Period Ending July 1-29 Cash + Noncash Assets Liabilities + Capital Gold (3/6)+ Capital Porter (2/6) + Capital Sims (1/6) Balances before realization Sale of assets and division of loss Balances after realkization Payment of liabilities Balances after payment of liablities Cash distributed to partners Final balancesExplanation / Answer
Gold, Porter and Sims
Statement of Partnership Distribution
For the period ending July 1-29
Cash+
Non Cash Asset =
Liabilities +
Capital Gold (3/6)+
Capital Porter (2/6)+
Capital Sims (1/6)
Balances Before Realization
$ 56,400.00
$ 93,000.00
$ 41,700.00
$ 35,400.00
$ 50,100.00
$ 22,200.00
Sale of asset and Division of loss (WN1)
$ 74,400.00
$ (93,000.00)
$ 0
$ (9,300.00)
$ (6,200.00)
$ (3,100.00)
Balances after realization
$ 130,800.00
$ 0
$ 41,700.00
$ 26,100.00
$ 43,900.00
$ 19,100.00
Payment of Liabilities
$ (41,700.00)
$ 0
$ (41,700.00)
$ 0
$ 0
$ 0
Balance after payment of Liabilities
$ 89,100.00
$ 0
$ 0
$ 26,100.00
$ 43,900.00
$ 19,100.00
Cash Distributed to partners
$ (89,100.00)
$ 0
$ 0
$ (26,100.00)
$ (43,900.00)
$ (19,100.00)
Final Balances
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
Working note 1
Distribution of 18600 in ratio of 3:2:1 between Gold, porter and Sims Respectively
Gold share of Loss(18600/6*3)
$ 9,300.00
Porter share of Loss(18600/6*2)
$ 6,200.00
Sims share of Loss(18600/6*1)
$ 3,100.00
Working note 2
Loss on sale
Book value of Non cash Asset
$ 93,000.00
Sale consideration
$ 74,400.00
Loss on sale
$ 18,600.00
Gold, Porter and Sims
Statement of Partnership Distribution
For the period ending July 1-29
Cash+
Non Cash Asset =
Liabilities +
Capital Gold (3/6)+
Capital Porter (2/6)+
Capital Sims (1/6)
Balances Before Realization
$ 56,400.00
$ 93,000.00
$ 41,700.00
$ 35,400.00
$ 50,100.00
$ 22,200.00
Sale of asset and Division of loss (WN1)
$ 74,400.00
$ (93,000.00)
$ 0
$ (9,300.00)
$ (6,200.00)
$ (3,100.00)
Balances after realization
$ 130,800.00
$ 0
$ 41,700.00
$ 26,100.00
$ 43,900.00
$ 19,100.00
Payment of Liabilities
$ (41,700.00)
$ 0
$ (41,700.00)
$ 0
$ 0
$ 0
Balance after payment of Liabilities
$ 89,100.00
$ 0
$ 0
$ 26,100.00
$ 43,900.00
$ 19,100.00
Cash Distributed to partners
$ (89,100.00)
$ 0
$ 0
$ (26,100.00)
$ (43,900.00)
$ (19,100.00)
Final Balances
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
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