1) The CDG Carlos, Dan, and Gail Partnership has decided to liquidate as of December 1, 20X6. A balance sheet on the date follows:

CDG PARTNERSHIP Balance Sheet At December 1, 20X6

2)

On January 1, 20X1, partners Art, Bru, and Chou, who share profits and losses in the ratio of 5:3:2, respectively, decide to liquidate their partnership. The partnership trial balance at this date follows:

	Debit				Credit
Cash		$	19,400
Accounts Receivable			69,500
Inventory			55,500
Machinery and Equipment (net)			192,500
Accounts Payable						$	54,400
Art, Capital							91,500
Bru, Capital							113,500
Chou, Capital							77,500
Total		$	336,900			$	336,900

The partners plan a program of piecemeal conversion of assets to minimize liquidation losses. All available cash, less an amount retained to provide for future expenses, is to be distributed to the partners at the end of each month. A summary of the liquidation transactions follows: January 20X1

1. Collected $53,800 on accounts receivable; the balance is uncollectible.
2. Received $40,100 for the entire inventory.
3. Paid $2,700 liquidation expenses.
4. Paid $51,600 to creditors, after offset of a $2,800 credit memorandum received on January 11, 20X1.
5. Retained $11,400 cash in the business at the end of the month for potential unrecorded liabilities and anticipated expenses.

February 20X1

6. Paid $4,700 liquidation expenses.
7. Retained $6,700 cash in the business at the end of the month for potential unrecorded liabilities and anticipated expenses.

March 20X1

8. Received $148,800 on sale of all items of machinery and equipment.
9. Paid $5,700 liquidation expenses.
10. Retained no cash in the business.

Assets

Cash

$

29,500

Accounts Receivable (net)

84,000

Inventories

109,000

Property, Plant and Equipment (net)

318,000

Total Assets

$

540,500

Liabilities and Capital

Liabilities:

Accounts Payable

$

283,500

Capital:

Carlos, Capital

$

129,000

Dan, Capital

59,000

Gail, Capital

69,000

Total Capital

257,000

Total Liabilities and Capital

$

540,500

Additional Information

1. Each partners personal assets (excluding partnership capital interests) and personal liabilities as of December 1, 20X6, follow:

	Carlos				Dan				Gail
Personal assets	$	259,000			$	309,000			$	359,000
Personal liabilities		(234,500	)		(	235,500	)			(334,300	)
Personal net worth	$	24,500			$	73,500			$	24,700

2. Carlos, Dan, and Gail share profits and losses in the ratio 20:40:40.
3. CDG sold all noncash assets on December 10, 20X6, for $267,500.

Required: b. Prepare a schedule of the net worth of each of the three partners as of December 10, 2006, after the liquidation of the partnership is completed assuming that no other events occurred in the 10-day period that changed any of the partners personal assets and personal liabilities. (Round your answers to the nearest whole dollar.) 3)

The Pen, Evan, and Torves Partnership has asked you to assist in winding-up its business affairs. You compile the following information:

1. The partnerships trial balance on June 30, 20X1, is

	Debit				Credit
Cash		$	6,700
Accounts Receivable (net)			28,000
Inventory			21,000
Plant and Equipment (net)			99,600
Accounts Payable						$	11,800
Pen, Capital							62,000
Evan, Capital							52,500
Torves, Capital							29,000
Total		$	155,300			$	155,300

2. The partners share profits and losses as follows: Pen, 50 percent; Evan, 30 percent; and Torves, 20 percent.
3. The partners are considering an offer of $107,000 for the firms accounts receivable, inventory, and plant and equipment as of June 30. The $107,000 will be paid to creditors and the partners in installments, the number and amounts of which are to be negotiated.