Assignment on liquidation....... (15points) The December 31, 2020, balance sheet of A, B and C...
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Assignment on liquidation....... (15points) The December 31, 2020, balance sheet of A, B and C partnership was summarized as follows: Assets: Cash Receivables Inventories Total assets 50,000 100,000 200,000 350,000 AP (30 %) A, capital (20%) B, Capital (50 %) , Capital Total liabilities and capital 130,000 70,000 60,000 90,000 350,000 1. 2. 3. On Jan 1, 2020, the partners decide to liquidate the business. Activities during January are as follows: All accounts receivable are collected in full after granting 10% cash discount to customers. An inventory with a book value 120,000 was sold for $90,000. Remaining inventory with a fair value $50,000 is taken by B in a partial settlement with his capital. The creditors of AP agree to receive cash $125,000 as a final settlement for their full claims. Cash received from a customer $15,000 for a sales invoice in 2018 which was not recorded and received. Liquidation expenses $5,000 were paid. Remaining cash to partners 4. 5. 6. 7. Required: 1) Prepare a statement of partnership liquidation during January? (12 points) statement of partnership liquidation Trans @balances cash receivables Inventory AC + AP B,C Beg balances
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