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After closing the accounts on July 1, prior to liquidating the An unincorporated

ID: 2337151 • Letter: A

Question

After closing the accounts on July 1, prior to liquidating the An unincorporated business form consisting of two or more persons conducting business as co-owners for profit.partnership, the capital account balances of Gold, Porter, and Sims are $31,800, $45,300, and $20,100, respectively. Cash, noncash assets, and liabilities total $49,800, $83,700, and $36,300, respectively. Between July 1 and July 29, the noncash assets are sold for $66,900, 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 The winding-up process when a partnership goes out of business.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 realization $ $ $ $ $ $ Payment of liabilities Balances after payment of liabilities $ $ $ $ $ $ Cash distributed to partners Final balances $ $ $ $ $ $

Explanation / Answer

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

$ 49,800.00

$ 83,700.00

$ 36,300.00

$ 31,800.00

$ 45,300.00

$ 20,100.00

Sale of assets and division of loss

$ 66,900.00

­-$83,700.00

- $ 8,400.00

- $5,600.00

- $2,800.00

Balances after realization

$ 116,700.00

$             -  

$ 36,300.00

$ 23,400.00

$ 39,700.00

$ 17,300.00

Payment of liabilities

-$36,300.00

-$36,300.00

Balances after payment of liabilities

$ 80,400.00

$          0.00  

$          0.00  

$ 23,400.00

$ 39,700.00

$ 17,300.00

Cash distributed to partners

- $80,400.00

- $ 23,400.00

- $39,700.00

-$17,300.00

Final balances

$          0.00  

$          0.00  

$          0.00  

$          0.00  

$          0.00  

$          0.00  

Distribution of Loss

Book value of Non cash assets

$    83,700.00

Cash received on sale

$    66,900.00

Loss on sale

$    16,800.00

Distribution of loss

Gold

(16800/6x3)

$      8,400.00

Porter

(16800/6x2)

$      5,600.00

Sims

(16800/6x1)

$      2,800.00

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

$ 49,800.00

$ 83,700.00

$ 36,300.00

$ 31,800.00

$ 45,300.00

$ 20,100.00

Sale of assets and division of loss

$ 66,900.00

­-$83,700.00

- $ 8,400.00

- $5,600.00

- $2,800.00

Balances after realization

$ 116,700.00

$             -  

$ 36,300.00

$ 23,400.00

$ 39,700.00

$ 17,300.00

Payment of liabilities

-$36,300.00

-$36,300.00

Balances after payment of liabilities

$ 80,400.00

$          0.00  

$          0.00  

$ 23,400.00

$ 39,700.00

$ 17,300.00

Cash distributed to partners

- $80,400.00

- $ 23,400.00

- $39,700.00

-$17,300.00

Final balances

$          0.00  

$          0.00  

$          0.00  

$          0.00  

$          0.00  

$          0.00  

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