Problem 15-20 (Algo) (LO 15-6)

The following balance sheet is for a partnership in which the partners have decided to terminate operations and liquidate assets. The partners estimate liquidation expenses will be $14,000.

Cash	$	120,000		Liabilities	$	70,000
Noncash assets		270,000		Arch, capital (40%)		120,000
				Bibb, capital (20%)		60,000
				Dao, capital (40%)		140,000
Total assets	$	390,000		Total liabilities and capital	$	390,000

Prepare a proposed schedule of liquidation to carry out a preliminary distribution of partnership assets at the date of termination. (Amounts to be deducted should be entered with a minus sign.)

ARCH, BIBB, AND DAO PARTNERSHIP
Proposed Schedule of Liquidation
Date of Termination
	Cash	Noncash Assets	Liabilities	Arch, Capital 40%	Bibb, Capital 20%	Dao, Capital 40%
Beginning balances
Pay liabilities
Max. liquidation expenses
Max. loss noncash assets
Initial safe payments