Adams, Peters, and Blake share profits and losses for their APB Partnership in a ratio of 2:3:5. When they decide to liquidate, thebalance sheet is as follows:CashAdams, Loan:Other AssetsAssetsTotal AssetsLiabilitiesAdams, CapitalPeters, CapitalBlake, CapitalTotal Liabilities and EquitiesLiquidation expenses are expected to be negligible. No interest accrues on loans with partners after termination of the business.Required:Prepare a cash distribution plan for the APB Partnership. Please follow the practical guidelines when completing this worksheet.Profit and loss percentagesPreliquidation capital balancesLoan to AdamsTotalLoss absorption potentialDecrease highest LAP to next highestAdams$ 51,00012,200222,000$285,200Decrease LAPs to next highestAdamsPeters✪00AdamsLoss Absorption PotentialPeters335,500(30.500)$ 305,000O (142,400)O$ 162.600Answer is not complete.APB PARTNERSHIPCash Distribution PlanLiabilities and Capital305,000$ 305,000(142,400)$ 162.600Blake162.600$ 162.60015$ 162,600 $$ 67,100(12.200)54,900Adams$20%(6,100)48.800(28,480)20,320$ 45,30067,10091,50081,300$285,200Capital AccountsPeters30 %SSS91,5000091,50091.500(42.720)$ 48,780$sBlake50 %81,300DO81,300$81,3005 81,300

When a firm goes insolvent, the process of closing it down and dispersing its assets to claimants is…

Adams, Peters, and Blake share profits and losses for their APB Partnership in a ratio of 2:3:5. When they decide to liquidate, the balance sheet is as follows: Cash Adams, Loan Other Assets Assets Liabilities. Adams, Capital Peters, Capital Blake, Capital Total Liabilities and Equities Liquidation expenses are expected to be negligible. No interest accrues on loans with partners after termination of the business. Required: Prepare a cash distribution plan for the APB Partnership. Please follow the practical guidelines when completing this worksheet. Total Assets. $ 51,000 12,200 222,000 Liabilities and Capital $285,200 $ 45,300 67,100 91,500 81,300 $285,200

Adams, Peters, and Blake share profits and losses for their APB Partnership in a ratio of 2:3:5. When they decide to liquidate, the balance sheet is as follows: Cash Adams, Loan Other Assets Assets Liabilities. Adams, Capital Peters, Capital Blake, Capital Total Liabilities and Equities Liquidation expenses are expected to be negligible. No interest accrues on loans with partners after termination of the business. Required: Prepare a cash distribution plan for the APB Partnership. Please follow the practical guidelines when completing this worksheet. Total Assets. $ 51,000 12,200 222,000 Liabilities and Capital $285,200 $ 45,300 67,100 91,500 81,300 $285,200

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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