Advanced Accounting
14th Edition
ISBN: 9781260247824
Author: Joe Ben Hoyle, Thomas F. Schaefer, Timothy S. Doupnik
Publisher: RENT MCG
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Chapter 15, Problem 16P
To determine
Prepare a proposed schedule of liquidation at this point in time.
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The following condensed balance sheet is for the partnership of Hardwick, Saunders, and Ferris, who share profits and losses in the ratio of 4:3:3, respectively:
Cash
$
92,000
Accounts payable
$
72,000
Other assets
810,000
Ferris, loan
53,000
Hardwick, loan
43,000
Hardwick, capital
370,000
Saunders, capital
230,000
Ferris, capital
220,000
Total assets
$
945,000
Total liabilities and capital
$
945,000
The partners decide to liquidate the partnership. Forty percent of the other assets are sold for $155,000. Prepare a proposed schedule of liquidation at this point in time. (Amounts to be deducted should be entered with a minus sign.)
The following condensed balance sheet is for the partnership of Hardwick, Saunders, and Ferris, who share profits and losses in the
ratio of 4:3:3, respectively:
Cash
$ 89,000
Accounts payable
Ferris, loan
Hardwick, capital
Saunders, capital
Ferris, capital
$144,000
Other assets
50,000
340,000
200,000
190,000
795,000
40,000
Hardwick, loan
Total assets
$924,000
Total liabilities and capital
$924,000
The partners decide to liquidate the partnership. Fifty percent of the other assets are sold for $225,000. Prepare a proposed schedule
of liquidation at this point in time. (Amounts to be deducted should be entered with a minus sign.)
HARDWICK, SAUNDERS, AND FERRIS
Proposed Schedule of Liquidation
Hardwick,
Loan and
Capital
Other
Saunders, Ferris, Loan
Capital
Accounts
Cash
Assets
Payable
& Capital
Beginning balances
Sold assets
Adjusted balances
Max loss on remaining noncash assets
$ 89,000
225,000
$ 314,000
Paid liabilities
Safe payments
$ 314,000
The following condensed balance sheet is for the partnership of Hardwick, Saunders, and Ferris, who share profits and losses in the ratio of 4:3:3, respectively:
Cash
$
91,000
Accounts payable
$
96,000
Other assets
805,000
Ferris, loan
52,000
Hardwick, loan
42,000
Hardwick, capital
360,000
Saunders, capital
220,000
Ferris, capital
210,000
Total assets
$
938,000
Total liabilities and capital
$
938,000
The partners decide to liquidate the partnership. Fifty percent of the other assets are sold for $165,000. Prepare a proposed schedule of liquidation at this point in time.
Chapter 15 Solutions
Advanced Accounting
Ch. 15 - Prob. 1QCh. 15 - Prob. 2QCh. 15 - Prob. 3QCh. 15 - Prob. 4QCh. 15 - What is the purpose of a statement of liquidation?...Ch. 15 - Prob. 1PCh. 15 - Prob. 2PCh. 15 - Prob. 3PCh. 15 - Prob. 4PCh. 15 - A partnership is considering possible liquidation...
Ch. 15 - What is a predistribution plan? a. A list of the...Ch. 15 - Prob. 7PCh. 15 - Prob. 8PCh. 15 - Prob. 9PCh. 15 - Prob. 10PCh. 15 - Prob. 11PCh. 15 - Prob. 12PCh. 15 - Prob. 13PCh. 15 - Prob. 14PCh. 15 - Prob. 15PCh. 15 - Prob. 16PCh. 15 - Prob. 17PCh. 15 - Prob. 18PCh. 15 - Prob. 25PCh. 15 - Prob. 26PCh. 15 - March, April, and May have been in partnership for...Ch. 15 - Prob. 28PCh. 15 - Prob. 29P
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