The following transactions occur in liquidating this business: Distributed cash based on safe capital...
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Accounting
The following transactions occur in liquidating this business:
Distributed cash based on safe capital balances immediately to the partners. Liquidation expenses of $10,000 are estimated as a basis for this computation.
Sold noncash assets with a book value of $98,000 for $66,000.
Paid all liabilities.
Distributed cash based on safe capital balances again.
Sold remaining noncash assets for $53,000.
Paid actual liquidation expenses of $8,000 only.
Distributed remaining cash to the partners and closed the financial records of the business permanently.
The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its business property. A balance sheet drawn up at this time shows the following account balances $ 66,000 Liabilities Cash Noncash assets Frick, capital (68%) Wilson, capital (20%) Clarke, capital (20%) $ 46,000 135,000 37,000 231,000 Total assets 297,000Total liabilities and capita.l $297,000
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