On January 1, the partners of Van, Bakel, and Cox (who share profits and losses in the ratio of 5:32, respectively) decide to liquidate their partnership. The trial balance at this date follows: Credit $ Debit 23,000 76,000 62,888 199,000 40,098 cash Accounts receivable Inventory Machinery and equipment, net Van, loan Accounts payable Bakel, loan Van, capital Bakel, capital Cox, capital Totals $ 73,000 30,000 123,000 95,898 79,000 $400, eee $ 480,000 The partners plan a program of piecemeal conversion of the partnership's assets to minimize liquidation losses. All available cash, less an amount retained to provide for future expenses, is to be distributed to the partners at the end of each month. A summary of the liquidation transactions follows: January Collected $56,080 of the accounts receivable; the balance is deemed uncollectible. Received $43,000 for the entire inventory. Paid $7,000 in liquidation expenses. Paid $65,000 to the outside creditors after of setting a $8,000 credit memorandum received by the partnership on January 11. Retained $15,000 cash in the business at the end of January to cover any unrecorded liabilities and anticipated expenses. The remainder is distributed to the partners. Februar 2010 58,000 in 1iquidation expenses. - Fach Th 11 of 1 NP February Paid $8,000 in liquidation expenses. Retained $3,000 cash in the business at the end of the month to cover unrecorded liabilities and anticipated expenses. March Received $151,000 on the sale of all machinery and equipment. Paid $10,000 in final liquidation expenses. Retained no cash in the business. Prepare a schedule to compute the safe installment payments made to the partners at the end of each of these three months. (Do not round Intermediate calculations.) Complete this question by entering your answers in the tabs below. January February Prepare a schedule to compute the safe installment payments made to the partners at the end of January C VAN, BAKEL, AND COX PARTNERSHIP Safe Installment Payments to Partners January 31 Van Bakel Profit and loss ratio 1961 1% Capital balances - January 1 Add (deduct) loans Adjusted capital balances - January 1 0 $ Allocation of January niet loss Capital balances - January 31 ox Total 0% IS 0 0 050 DO Prev 10 of 10 FEET Complete this question by entering your answers in the tabs below. January February March Prepare a schedule to compute the safe installment payments made to the partners at the end of February. VAN, BAKEL, AND COX PARTNERSHIP Safe Installment Payments to Partners February 28 Bakel Total Profit and loss ratio Capital balances - January 31 Safe payments - January 31 Capital balances - February 1 Allocation of February net loss Capital balances - February 28 SO Potential loss Subtotal $ 0 $ Allocation of deficit balances Safe payments to partners - February 28 $ $ 0 S0S 0000000001 March >
