Exercise 16-3

The unsuccessful partnership of the Jones Brothers is about to undergo liquidation. They have asked you to estimate the amount of cash that each brother will receive. They share profits and losses equally.

Cash		$20,000		Liabilities		$26,000
Noncash Assets		103,000		Doug, Capital		55,000
				Dave, Capital		48,000
				Dan, Capital		(6,000)
		$123,000				$123,000

Both Doug and Dave are personally solvent, but Dan is not. They estimate that they will receive $58,000 from the sale of the noncash assets. Prepare a schedule to estimate the amount of cash each brother will receive. (Enter credit balance of an account and credit posting to an account with negative sign preceding the number, e.g. -45 or parentheses, e.g. (45).)

***OPTIONS ARE GIVEN IN PICTURE***

ESOURCES 08 apter 16 Exercise 16-3 The unsuccessful partnership of the Jones Brothers is about to undergo liquidation. They have asked you to estimate the amount of cash that each brother will receive. T Cash Noncash Assets $20,000 103,000 Liabilities Doug, Capital Dave, Capital Dan, Capital $26,000 55,000 48,000 (6,000) $123,000 $123,000 Both Doug and Dave are personally solvent, but Dan is not. They estimate that they will receive $58,000 from the sale of the noncash assets. by Study Prepare a schedule to estimate the amount of cash each brother will receive. (Enter credit balance of an account and credit posting to an account with negative (1/3) Doug (1/3) Dave (1/3) Dan Allocate Debit Balance Capital Balances Estimated Cash Payment Estimated Loss on Sale of Assets N