Problem 15-16 (LO 15-4)

The following condensed balance sheet is for the partnership of Hardwick, Saunders, and Ferris, who share profits and losses in the ratio of 4:3:3, respectively:

Cash	$ 86,000		Accounts payable	$ 132,000
Other assets	805,000		Ferris, loan	51,000
Hardwick, loan	52,000		Hardwick, capital	310,000
			Saunders, capital	230,000
			Ferris, capital	220,000
Total assets	$ 943,000		Total liabilities and capital	$ 943,000

The partners decide to liquidate the partnership. Forty percent of the other assets are sold for $185,000. Prepare a proposed schedule of liquidation at this point in time.