Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Need answers only thanks :) After working for In the Kitchen remodeling business for several years, Terry and Phyllis decided to go into business for

Need answers only thanks :)
image text in transcribed
image text in transcribed
After working for In the Kitchen remodeling business for several years, Terry and Phyllis decided to go into business for themselves and formed the Kitchens Just for You partnership. Three years ago, they admitted Connie as a partner and recognized goodwill at that time because of her good client list for planned kitchen makeovers. However, they were not able to gain a sufficient market for new customers and on September 1, 20X9, they agreed to dissolve and tiquidate the business. They decided on an installment liquidation to complete the projects already initiated. The balance sheet, with profit and loss-sharing percentages at the beginning of liquidation, is as follows: Connie's loan was for working capital; the Joan to Terry was for his unexpected personal medical bills. During September 209, the first month of liquidation, the partnership collected $48.000 in receivables and decided to write off $5,000 of the remaining receivables. Sales of one-half of the book value of the inventory realized a los of $3,000. The partners estimate that the costs of liquidating the business (newspaper ads, signs, etc), are expected to be $9,000 for the remainder of the liquidation process. Required: Prepare a schedule of safe payments to partners as of September 30,209, to show how the available cash should be distributed to the partners. Please follow the practical guidelines when completing this worksheet

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

Financial Accounting An Introduction To Concepts Methods And Uses

Authors: Clyde P. Stickney, Roman L. Weil

9th Edition

0030259622, 978-0030259623

More Books

Students also viewed these Accounting questions

Question

Salary (if known)

Answered: 1 week ago

Question

Understand the primary objectives of performance appraisals

Answered: 1 week ago