Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help solving this problem. Thank you! 2011, the partners of Won, Cadel, and Dax (who shared profits and losses ot 5:3:2.respectively) decided to

I need help solving this problem. Thank you!

image text in transcribed

2011, the partners of Won, Cadel, and Dax (who shared profits and losses ot 5:3:2.respectively) decided to liquidate their partnership. The trial balance in the ratio at this date was as follows: Credit $ 23.400 Cash Accounts Receivable Inventory Machinery and equipment, net Won. loan Accounts payable Cadel, loan 67.600 245.700 S 68,900 26,000 153,400 I 17,000 96,200 S 461.500 Cadel, capital Dax, capital Totals S 461,500 The partners planned a program of piecemeal conversion of the business assets to minimize liquidation losses. All available cash, less an amount retained to provide for future expenses, was to be distributed to the partners at the end of each month. A summary of liquidation transactions follows: $66300collected on the accounts receivable, the balance was deemed to be uncollectible $-49.400 was recerved for the entire inventory $2.600 in liquidation expenses were paid $65,000 wis paid to outside creditors, after receiving a $3,900 credit memo from a creditor on January ! January Cash of $13,000 was retained n cesusiarowsreorma the end of the month to cover unrecorded isbilities and anticipated expeoses The balance of cash was distributed to the partners 3,900 in liquidation expenses were paid $7.800 in cash was retained at the end of the month to cover unrecorded iabilities and anticipated expenses S189,800 was received on the sale of all machinery and equipment S6.500 in final liquidation espenses were paid No cash was retained as all cash was distributed to partners February March Prepare a schedule to calculate the safe payments to be made to the partners at the end ofJanuary

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing

Authors: Alan Millichamp, John Taylor

11th Edition

1473749301, 978-1473749306

More Books

Students also viewed these Accounting questions

Question

What was the Courts interpretation of those provisions?

Answered: 1 week ago