Check my wo 2 The DSV Partnership decided to liquidate as of June 30, 20X5. ts balance sheet as of this date follows: DSV PARTNERSHIP Balance Sheet At June 3e, 20x5 33.33 points Assets Cash Accounts Receivable (net) Inventories Property, Plant and Equipment (net) Total Assets Liabilities and Partners' Capital Liabilities: $58,ee0 95,860 75,e00 509,880 $726,eee eBook Print References Accounts Payable Partners' Capital: $405,800 Capita $100.090 homework ch le Check my work 2 D, Capital s, Capital v, capital Total Capital $100,e00 148,80e 75,000 315,000 $720,000 Total Liabilities and Capital 33.33 points Additional Information ellook Print Reference 1. The personal l assets (excluding pertnership loan and copital interests) and personal liabilities of each pertner as of June 30, 20X5, folldow s 25e,ee0 45e,eee 300, e80 Personal assets Personal liabilities (270,e08) (420,e0e) (240, e00) 60,000 (2e,eee) $ ,eee $ $ Personal net worth Check my work 2 1. The personal assets (excluding partnership loan and capital interests) and personal liabilities of each partner as of June 30, 20X5, follow Personal assets Personal liabilities Personal net worth 250,000 45e,e0e (27e,088) 300,eee (240, 000) 33.33 points (420,00e) (20,0ee) 30,000 60,ee0 eBook 2. The DSV Partnership was liquidated during the months of July. August, and September. The assets sold and the Print amounts realized follow Month July Assets Sold Carrying Amount Amount Realized Inventories Accounts receivable (net) Property, plant and equipment Inventories $50,800 60,000 480,880 s 25,000 $ 45,ee6 40,000 385,800 $ 18,006 August Check my work $ 25,e00 10,e00 25,ee0 100,ee0 s 18,800 4, ee0 s 10, 0e0 45,e00 Inventories Accounts receivable (net) Accounts receivable (net) Property, plant and equipment August September Assume the following cesh amounts were received during the months of July, August, and September from the sale of DSV Partnership's noncash assets: ook July August September 55,8ee $390,000 22,000 The partnership wishes to keep $10,000 of cesh on hand at the end of both July and August to pay for unexpected liquidation expenses It paid liquidation expenses of $2,500 at the end of each month, July. August, and September. D, S, and V share profits and losses in the ratio S0:30:20, respectively. Required a. Prepare a statement as of June 30, 20X5, showing how cash will be distributed among partners as it becomes available. (Do not round your intermediate calculations. Round your final answers to nearest whole dollar) DSV PARTNERSHIP Cash Distribution Plan June 30, 20x6 Loss Absorption Power Capital Balances 30 20 50 Profit and loss sharing ratio Preliquidation capital balances $140,000 $ 75,000 $100,000 Check my work Profit and loss sharing ratio Preliquidation capital balances Loss absorption potential (LAP) Decrease highest LAP to next highast LAP 50 $100,000 60,000 30 20 $ 140,00 $ 75,000 t 36.000 24,000 $ 39,0001 $510,000 2,500 36,500 510,000$ ook 0 38,750 $103,250 50,500 Decrease LAP to next highest level rint 405,000 405,000 rences $103,250 $ 50,500 (368,500) 510,000 $ S(405,000) 38,750 Docrease LAPs by distibuting cash in the P/L sharing ratio Check my work Profit and loss ratio Preliquidation balances, June 30 July loss on disposal of assets and payment of liquidation costs 50190 30 201% 88,750|$ 103,250|$ 50,500 34,000 3,750 2,250 16,50 85,000 51,000 July 31 distribution of available cash to partners (Sch. 1) in First layer August loss on disposal of assets and payment of liquidation costs August 31 distribution of available cash to partners (Sch. 2) Remaining layer 46,250 (42,500)52,25016,500 27,750 (42,500)24,500 16,500 es of which paid on July 31 Next layer 8,500 Check my work Next layer (42,500)24,500(2,000) $(42,500)4,500$ (2,000) $(42,500) 24,500 (2,000) September loss on disposal of assets and payment of liquidation costs Distribution of D's deficit September 30 distribution of available cash to partners (Sch. 3) Next layer of which paid on August 31 Postliquidation balances $ (42,500)24,500(2,000) Check my wo 2 The DSV Partnership decided to liquidate as of June 30, 20X5. ts balance sheet as of this date follows: DSV PARTNERSHIP Balance Sheet At June 3e, 20x5 33.33 points Assets Cash Accounts Receivable (net) Inventories Property, Plant and Equipment (net) Total Assets Liabilities and Partners' Capital Liabilities: $58,ee0 95,860 75,e00 509,880 $726,eee eBook Print References Accounts Payable Partners' Capital: $405,800 Capita $100.090 homework ch le Check my work 2 D, Capital s, Capital v, capital Total Capital $100,e00 148,80e 75,000 315,000 $720,000 Total Liabilities and Capital 33.33 points Additional Information ellook Print Reference 1. The personal l assets (excluding pertnership loan and copital interests) and personal liabilities of each pertner as of June 30, 20X5, folldow s 25e,ee0 45e,eee 300, e80 Personal assets Personal liabilities (270,e08) (420,e0e) (240, e00) 60,000 (2e,eee) $ ,eee $ $ Personal net worth Check my work 2 1. The personal assets (excluding partnership loan and capital interests) and personal liabilities of each partner as of June 30, 20X5, follow Personal assets Personal liabilities Personal net worth 250,000 45e,e0e (27e,088) 300,eee (240, 000) 33.33 points (420,00e) (20,0ee) 30,000 60,ee0 eBook 2. The DSV Partnership was liquidated during the months of July. August, and September. The assets sold and the Print amounts realized follow Month July Assets Sold Carrying Amount Amount Realized Inventories Accounts receivable (net) Property, plant and equipment Inventories $50,800 60,000 480,880 s 25,000 $ 45,ee6 40,000 385,800 $ 18,006 August Check my work $ 25,e00 10,e00 25,ee0 100,ee0 s 18,800 4, ee0 s 10, 0e0 45,e00 Inventories Accounts receivable (net) Accounts receivable (net) Property, plant and equipment August September Assume the following cesh amounts were received during the months of July, August, and September from the sale of DSV Partnership's noncash assets: ook July August September 55,8ee $390,000 22,000 The partnership wishes to keep $10,000 of cesh on hand at the end of both July and August to pay for unexpected liquidation expenses It paid liquidation expenses of $2,500 at the end of each month, July. August, and September. D, S, and V share profits and losses in the ratio S0:30:20, respectively. Required a. Prepare a statement as of June 30, 20X5, showing how cash will be distributed among partners as it becomes available. (Do not round your intermediate calculations. Round your final answers to nearest whole dollar) DSV PARTNERSHIP Cash Distribution Plan June 30, 20x6 Loss Absorption Power Capital Balances 30 20 50 Profit and loss sharing ratio Preliquidation capital balances $140,000 $ 75,000 $100,000 Check my work Profit and loss sharing ratio Preliquidation capital balances Loss absorption potential (LAP) Decrease highest LAP to next highast LAP 50 $100,000 60,000 30 20 $ 140,00 $ 75,000 t 36.000 24,000 $ 39,0001 $510,000 2,500 36,500 510,000$ ook 0 38,750 $103,250 50,500 Decrease LAP to next highest level rint 405,000 405,000 rences $103,250 $ 50,500 (368,500) 510,000 $ S(405,000) 38,750 Docrease LAPs by distibuting cash in the P/L sharing ratio Check my work Profit and loss ratio Preliquidation balances, June 30 July loss on disposal of assets and payment of liquidation costs 50190 30 201% 88,750|$ 103,250|$ 50,500 34,000 3,750 2,250 16,50 85,000 51,000 July 31 distribution of available cash to partners (Sch. 1) in First layer August loss on disposal of assets and payment of liquidation costs August 31 distribution of available cash to partners (Sch. 2) Remaining layer 46,250 (42,500)52,25016,500 27,750 (42,500)24,500 16,500 es of which paid on July 31 Next layer 8,500 Check my work Next layer (42,500)24,500(2,000) $(42,500)4,500$ (2,000) $(42,500) 24,500 (2,000) September loss on disposal of assets and payment of liquidation costs Distribution of D's deficit September 30 distribution of available cash to partners (Sch. 3) Next layer of which paid on August 31 Postliquidation balances $ (42,500)24,500(2,000)