The Bui, Clemente, Devian, and Toussaint partnership has terminated operations and is undergoing liquidation. Sales commissions and other liquidation expenses are expected to total $19,000. The partnership’s balance sheet prior to the commencement of liquidation is as follows: Cash $ 27,000 Liabilities $ 40,000 Noncash assets 254,000 Bui, capital (20%) 18,000 Clemente, capital (40%) 40,000 Devian, capital (20%) 48,000 Toussaint, capital (20%) 135,000 Total assets $ 281,000 Total liabilities and capital $ 281,000 Required: Prepare a predistribution plan for this partnership.
The Bui, Clemente, Devian, and Toussaint partnership has terminated operations and is undergoing liquidation. Sales commissions and other liquidation expenses are expected to total $19,000. The partnership’s balance sheet prior to the commencement of liquidation is as follows: Cash $ 27,000 Liabilities $ 40,000 Noncash assets 254,000 Bui, capital (20%) 18,000 Clemente, capital (40%) 40,000 Devian, capital (20%) 48,000 Toussaint, capital (20%) 135,000 Total assets $ 281,000 Total liabilities and capital $ 281,000 Required: Prepare a predistribution plan for this partnership.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The Bui, Clemente, Devian, and Toussaint partnership has terminated operations and is undergoing liquidation. Sales commissions and other liquidation expenses are expected to total $19,000. The partnership’s
| Cash | $ 27,000 | Liabilities | $ 40,000 |
| Noncash assets | 254,000 | Bui, capital (20%) | 18,000 |
| Clemente, capital (40%) | 40,000 | ||
| Devian, capital (20%) | 48,000 | ||
| Toussaint, capital (20%) | 135,000 | ||
| Total assets | $ 281,000 | Total liabilities and capital | $ 281,000 |
Required:
Prepare a predistribution plan for this partnership.
Transcribed Image Text:Complete this question by entering your answers in the tabs below.
Partner
Balances
Prepare the loss allocation table.
Loss Allocation
Maximum
Partner Capital Balance Loss Allocation Loss That Can
Be Absorbed
Schedule 1
Bui
Clemente
Devian
Toussaint
Schedule 2
Bui
Clemente
Devian
Toussaint
Schedule 3
Bui
Clemente
Devian
Toussaint
< Loss Allocation
Partner Balances >
Transcribed Image Text:Complete this question by entering your answers in the tabs below.
Loss Allocation
Partner
Balances
Prepare the table showing partner balances.
Note: Amounts to be deducted should be entered with a minus sign.
Reported balances
Assumed loss
Balances
Assumed loss
Balances
Assumed loss
Balances
Bui
Clemente
< Loss Allocation
Devian
Toussaint
Partner Balances
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