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all boxes outlined in blue need an answer On January 1, 20X1, partners Art, Bru, and Chou, who share profits and losses in the ratio
all boxes outlined in blue need an answer
On January 1, 20X1, partners Art, Bru, and Chou, who share profits and losses in the ratio of 6.3 .1 , respectively, decide to liquidate their oartnership. The partnership trial balance at this date follows: 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 $52,600 on accounts receivable; the balance is uncollectible 2. Received $39,200 for the entire inventory. 3. Paid $2,400 liquidation expenses. 4. Paid $51,400 to creditors, after offset of a $2,400 credit memorandum received on January 11,201. 5. Retained $10,800 cash in the business at the end of the month for potential unrecorded liabilities and anticipated expenses. February 201 6. Paid $4,400 liquidation expenses. 7. Retained $6,400 cash in the business at the end of the month for potential unrecorded liabilities and anticipated expenses. March 20x1 8. Received $147,600 on sale of all items of machinery and equipment. 9. Paid $5.400 liquidation expenses. 10. Retained no cash in the business. Required: Prepare a statement of partnership liquidation for the partnership with schedules of safe payments to partners. Note: Round your answers to nearest whole dollar. Required: Prepare a statement of partnership liquidation for the partnership with schedules of safe payments to partners. Note: Round your answers to nearest whole dollar. \begin{tabular}{|l|c|c|c|} \hline \multicolumn{3}{|c|}{ ABC PARTNERSHIP } \\ \hline \multicolumn{3}{|c|}{ Schedule of Safe Payments to Partners } \\ \hline & \multicolumn{1}{|c|}{ Art } & Bru & Chou \\ \hline Schedule 1: January 31, 20X1 & & 30% & 10% \\ \hline Capital balances & & & \\ \hline Potential Losses and Expenses & & & \\ \hline & & & \\ \hline Allocation of potential deficit & & & \\ \hline Safe payment, January 31, 20X1 & & \\ \hline Schedule 2: February 27, 20X1 & & \\ \hline Capital balances & & \\ \hline Potential Losses and Expenses & & \\ \hline & & \\ \hline Allocation of potential deficit & & \\ \hline Safe payment, February 27, 20X1 & & \\ \hline \end{tabular}Step by Step Solution
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