Question
n December 31, 2020, the partners of A, B & C LLP, who shared net income and losses in the ratio of 5 : 3
n December 31, 2020, the partners of A, B & C LLP, who shared net income and losses in the ratio of 5 : 3 : 2, respectively, decided to liquidate the partnership. Thepartnership trial balance on that date was as follows:
A, B & C LLP Trial Balance, December 31, 2020
Debit Credit
Cash $ 18,000
Loan receivable from A 30,000
Trade accounts receivable (net) 66,000
Inventories 52,000
Machinery and equipment (net) 189,000
Trade accounts payable $ 53,000
Loan payable to B 20,000
A, capital 118,000
B, capital 90,000
C, capital 74,000
Totals $355,000 $355,000
The partners planned a lengthy time period for realization of noncash assets in order to minimize liquidation losses. All available cash, less an amount retained to provide for future liquidation costs, was to be distributed to the partners at the end of each month.
Prepare a cash distribution program for A, B & C LLP on December 31, 2020, showing how cash should be distributed to creditors and to partners as it becomesavailable during liquidation. Round amounts to the nearest dollar
n December 31, 2020, the partners of A, B & C LLP, who shared net income and losses in the ratio of 5 : 3 : 2, respectively, decided to liquidate the partnership. Thepartnership trial balance on that date was as follows:
A, B & C LLP Trial Balance, December 31, 2020
Debit Credit
Cash $ 18,000
Loan receivable from A 30,000
Trade accounts receivable (net) 66,000
Inventories 52,000
Machinery and equipment (net) 189,000
Trade accounts payable $ 53,000
Loan payable to B 20,000
A, capital 118,000
B, capital 90,000
C, capital 74,000
Totals $355,000 $355,000
The partners planned a lengthy time period for realization of noncash assets in order to minimize liquidation losses. All available cash, less an amount retained to provide for future liquidation costs, was to be distributed to the partners at the end of each month.
Prepare a cash distribution program for A, B & C LLP on December 31, 2020, showing how cash should be distributed to creditors and to partners as it becomesavailable during liquidation. Round amounts to the nearest dollar
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College Accounting Chapters 1-30
Authors: John Price, M. David Haddock, Michael Farina
15th edition
1259994975, 125999497X, 1259631117, 978-1259631115
