The following balance sheet is for a partnership in which the partners have decided to...
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Accounting
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 Noncash assets $ 130,000 240,000 Liabilities Arch, capital (40%) Bibb, capital (20%) Dao, capital (40%) Total liabilities and capital $ 50,000 120,000 60,000 140,000 $ 370,000 Total assets $ 370,000 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.) $ Beginning balances Pay liabilities Max. liquidation expenses Max. loss - noncash assets Initial safe payments ARCH, BIBB, AND DAO PARTNERSHIP Proposed Schedule of Liquidation Date of Termination Noncash Cash Liabilities Arch, Capital Bibb, Capital Dao, Capital Assets 40% 20% 40% 130,000 $ 240,000 $ 50,000 $ 120,000 $ 60,000 $ 140,000 (50,000) (50,000) (14,000) (240,000) 66,000 $ 0 $ 0 $ 120,000 $ 60,000 $ 140,000 $
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