Problem 15-12 (Algo) (LO 15-3)

A partnership has the following account balances at the date of termination: Cash, $86,000; Noncash Assets, $690,000; Liabilities, $388,000; Alonso, capital (50 percent of profits and losses), $180,000; Mann, capital (30 percent), $130,000; Suzuki, capital (20 percent), $78,000. The following transactions occur during liquidation: Noncash assets with a book value of $530,000 are sold for $430,000 in cash. A creditor reduces his claim against the partnership from $130,000 to $110,000, and this amount is paid in cash. The remaining noncash assets are sold for $130,000 in cash. The remaining liabilities of $258,000 are paid in full. Liquidation expenses of $17,000 are paid in cash. Cash remaining after the above transactions have have occurred is distributed to the partners.

Required:

Prepare a statement of partnership liquidation to determine how much cash each partner receives from the liquidation of the partnership.

Note: Amounts to be deducted should be entered with a minus sign.

A partnership has the following account balances at the date of termination: Cash, $86,000; Noncash Assets, $690,000; Liabilities $388,000; Alonso, capital (50 percent of profits and losses). $180,000; Mann, capital (30 percent), \$130,000; Suzuki, capital (20 percent), $78,000. The following transactions occur during liquidation: - Noncash assets with a book value of $530,000 are sold for $430,000 in cash. - A creditor reduces his claim against the partnership from $130,000 to $110,000, and this amount is paid in cash. - The remaining noncash assets are sold for $130,000 in cash. - The remaining liabilities of $258,000 are paid in full. - Liquidation expenses of $17,000 are paid in cash. - Cash remaining after the above transactions have occurred is distributed to the partners. Requlred: Prepare a statement of partnership liquidation to determine how much cash each partner receives from the liquidation of the partnership. Note: Amounts to be deducted should be entered with a mlnus sign