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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