Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

P16-13 Lump-Sum Liquidation LO 16-2 The CDG Carlos Dan, and Gail Partnership has decided to liquidate as of December 1, 20X6. A balance sheet on

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
P16-13 Lump-Sum Liquidation LO 16-2 The CDG Carlos Dan, and Gail Partnership has decided to liquidate as of December 1, 20X6. A balance sheet on the date follows CO PARTNERSHIP $ 26,500 78,000 103,000 306.000 $513,500 Balance Sheet At December 1, 2006 Assets Casti Accounts Receivable (not) Inventories Property, plant and Equipment (net) Total Assets Liabilities and Capital Libilities Accounts Payable Capital Carlos, Capital Dan, Capital Gail, Capital Total Capital Total Liabilities and Capital $274,500 3123,000 53,000 63.000 D 219.000 $51),500 Additional Information 1. Each partner's personal assets (excluding partnership copitat interests) and personal liabilities as of December 1, 20X6, follow Personal assets Personal liabilities Personal net worth Carlos $.253,000 (231.500) $ 21,500 Dan 303,000 (2,500) $ 64,500 Gal $ 353,000 (029200) $ 23,00 Total Liabities and Capital 13,50 Additional Information 1. Each partner's personal assets (excluding partnership capital Interests) and personal liabilities as of December 1, 20X6, follow. Carlos Gail Personal assets 5253, bec $303,600 $ 353,000 Personal Habilities (231,5ee) (238. See 329, 200) Personal net worth $ 21,500 $ 64,500 $ 23,800 Dan 2.Carlos, Dan, and all share profits and losses in the ratio 20:40:40. 3. CDG sold all noncash assets on December 10, 20X6, for $263.600. Required: a. Prepare a statement of realization and liquidation for the CDG Partnership on December 10, 20X6. (Do not round your intermediate calculations. Round your final answers to the nearest whole dollar) CDG PARTNERSHIP Statement of Realization and Liquidation Lump-sum Liquidation on December 10, 20X6 Capital Balances Dan Cash Noncash Assets Liabilities Carlos Gall Proliquidation balances Sale of assets and distribution of loss $ OS os OS 05 015 Cash contributed by Gail to extent of positive net worth (23 800) a. Prepare a statement of realization and liquidation for the CDG Partnership on December 10, 20X6. (Do not round your intermediate calculations. Round your final answers to the nearest whole dollar.) CDG PARTNERSHIP Statement of Realization and Liquidation Lump-sum Liquidation on December 10, 20X6 Capital Balances Dan Cash Llabilities Noncash Assets Carlos Gail Proliquidation balances Sale of assets and distribution of loss $ 0 $ 0 $ 05 05 0 $ 0 Cash contributed by Gail to extent of positive net worth $ 05 0$ 0 $ 0 $ 0 Os Distribution of deficit of insolvent partner S 0 $ OS 0 $ 0$ O OS Contribution by Dan to remedy deficit 5 0 0$ 0 S 0 $ 0$ 0 Payment to creditors 5 0 S 01$ 015 05 OS 0 Payment to partner Postliquidation balances $ O 0 $ S OS 0 $ 0 0$ b. Prepare a schedule of the net worth of each of the three partners as of December 10, 2006, after the liquidation of the partnership is completed assuming that no other events occurred in the 10-day period that changed any of the partners' personal assets and personal liabilities. (Round your answers to the nearest whole dollar.) CDG PARTNERSHIP Net Worth of Partners December 10, 20X5 Carlos Dan Gail $ 0$ OS 0 Personal assets, excluding partnership capital interests Personalities Personal net worth, excluding partnership capital interests, Dec 1, 20X6 Contribution to partnership Liquidating distribution from partnership Not worth December 10, 20X6 $ 05 0 $ 0

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

Cornerstones of Managerial Accounting

Authors: Mowen, Hansen, Heitger

3rd Edition

324660138, 978-0324660135

More Books

Students also viewed these Accounting questions