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 Total 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. Profit and loss percentages Preliquidation capital balances Loan to Adams Total Loss absorption potential Decrease highest LAP to next highest Decrease LAPs to nest highest $ 36,000 13,800 215,000 $ 264,000 S Adams Liabilities and Capital Loss Absorption Potential 0 S Answer is not complete. APB PARTNERSHIP Cash Distribution Plan) 0 $ Blake 0 Adams 20% $ 53,400 (10,680) $ 42,720 S 42,720 $ 73,700 53,400 70,500 67,200 $ 264,800 Capital Accounts s s 300% 70.500 S 70.500 70.500 50% $67,200 O S 13 67,200 67,200

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 Total 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. Profit and loss percentages Preliquidation capital balances Loan to Adams Total Loss absorption potential Decrease highest LAP to next highest Decrease LAPs to nest highest $ 36,000 13,800 215,000 $ 264,000 S Adams Liabilities and Capital Loss Absorption Potential 0 S Answer is not complete. APB PARTNERSHIP Cash Distribution Plan) 0 $ Blake 0 Adams 20% $ 53,400 (10,680) $ 42,720 S 42,720 $ 73,700 53,400 70,500 67,200 $ 264,800 Capital Accounts s s 300% 70.500 S 70.500 70.500 50% $67,200 O S 13 67,200 67,200

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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