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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