On January 1, the partners of Van, Bakel, and Cox (who share profits and losses in the ratio of 5.3.2, respectively decide to liquidat their partnership. The trial balance at this date follows: Credit $ Cash Accounts receivable Inventory Machinery and equipment, net Van, loan Accounts payable Bakel, loan Van, capital Bakel, capital Cox, capital Totals Debit 39, eee 108,000 94,000 231,000 72,000 $ 95,000 62,000 181,090 111.ee 95,000 $544,000 $ 544,000 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 $72,000 of the accounts receivable; the balance is deemed uncollectible. Received $59,000 for the entire inventory. Pald $7,000 in liquidation expenses. Paid $87,000 to the outside creditors after offsetting a $8,000 credit memorandum received by the partnership on January 11. Retained $31,000 cash in the business at the end of January to cover any unrecorded liabilities and anticipated expenses. The remainder is distributed to the partners. February Paid $8,000 in liquidation expenses. Retained $19.000 cash in the business at the end of the month to cover unrecorded liabilities and anticipated expenses. Received $167,on the sale of all machinery and equipment Paid $10,000 in final liquidation expenses. Retained no cash in the business. March 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.) Prepare a schedule to compute the safe installment payments made to the partners at the end of each round intermediate calculations.) 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 January. Total VAN, BAKEL, AND COX PARTNERSHIP Sate Installment Payments to Partners January 31 Van Bakel Profit and loss ratio Capital balances - January 1 Add (deduct) loans Adjusted capital balances - January 1 Allocation of January net loss Capital balances - January 31 Potential loss Subtotal Allocation of deficit balances Safe payments to partners - January 31 February > February Paid $8,eee in liquidation expenses. Retained $19,000 cash in the business at the end of the month to cover unrecorded liabilities and anticipated expenses. March Received $167,000 on the sale of all machinery and equipment. Paid $10,eee 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 thi round intermediate calculations.) 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. Cox Total VAN, BAKEL, AND COX PARTNERSHIP Safe Installment Payments to Partners February 28 Van B akel 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 Potential loss Subtotal Allocation of deficit balances Sate payments to partners. February 28
