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PLEASE help me prepare a statement of realization and liquidation WITH supporting schedules of safe payments to partners (october, november, december). The partnership of Rachel
PLEASE help me prepare a statement of realization and liquidation WITH supporting schedules of safe payments to partners (october, november, december).
The partnership of Rachel Adams, and Nixon has the following trial balance on September 30, 20X9; Debit Credit Cash $ 20,000 Accounts Receivable (net) 30,000 Inventory 35, eae Plant and Equipment (net) 215, eee Accounts Payable $ 40,000 Rachel, Capital 120,000 Adams, Capital 90,000 Nixon, Capital 50, eee Total $380,000 $300,eee The partners shore profits and losses as follows: Rachel, 50 percent: Adams, 30 percent and Noon 20 percent. The partners are considering an offer of $180.000 for the accounts receivable, inventory and plant and equipment as of September 30. The $180,000 will be paid to creditors and the partners in installments, the number and amounts of which are to be negotiated The partners have decided to liquidate their partnership by instaliments instead of accepting the offer of $180.000 Cash is distributed to the partners at the end of each month. A summary of the liquidation transactions follows: October 1 $25,000 is collected on accounts receivablo; balance is uncollectible 2 $20.000 received for the entire inventory 3. 51,500 liquidation expense pald 4. 540,000 paid to creditors 5 $10.000 cash retained in the business of the end of the month November 6. $2,000 in liquidation expenses paid. 7. As pait payment of his capital, Nixon accepted an item of special equipment that he developed, which had a book value of $8.000. The partners agreed that a value of $12,000 should be placed on this item for liquidation purposes B$4,000 cash retained in the business at the end of the month December 9. $150.000 received on sale of remaining plant and equipment 10. $1000 liquidation expenses paid. No cash retained in the business Required: Prepare a statement of partnership realization and liquidation with supporting schedules of safe payments to partners Step by Step Solution
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