P 17-4 Installment liquidation The partnership of Gil, Hal, Ian, and Joe is preparing to liquidate. Profit-
Question:
P 17-4 Installment liquidation The partnership of Gil, Hal, Ian, and Joe is preparing to liquidate. Profit- and loss-sharing ratios are shown in the summarized balance sheet at December 31, 2016, as follows:
Cash $100,000 Other liabilities $ 50,000 Inventories 100,000 Gil capital (40%) 150,000 Loan to Hal 10,000 Hal capital (30%) 160,000 Other assets 255,000 Ian capital (20%) 50,000 Joe capital (10%) 55,000
$465,000 $465,000 REQuIRED 1. The partners anticipate an installment liquidation. Prepare a cash distribution plan as of January 1, 2017, that includes a $25,000 contingency fund to help the partners predict when they will be included in cash distributions.
Step by Step Answer:
Advanced Accounting
ISBN: 9781292214597
13th Global Edition
Authors: Joseph H. Anthony, Bruce Bettinghaus, Floyd A. Beams, Kenneth Smith