Questions 16-1, 16-2 and 16-3

EXERCISES Simple Liquidation Lo@ The CPA Partnership opernted by Cook, Parks, and Argo is being liqaidated. A balance sheet pepared at thi stage in their liquidation process is presented te low EXERCSE 16-1 Liabilities Parks, Loan Cook, Capital Parks, Capital Argo, Capital $25,000 10000 30,000 Cash Other Assets 15,000 Total $90,000 Total 9000 The partners share profits and losses 30% (Cook), 50% (Parks), and 20% (Argo). The partners are all personally insolvent Required A. The partners wish to distribute the $40,000 in cash. Record in journal entry form the distribution of the available cash B. Record in journal entry form the completion of the liqaidation process, assuming that the other assets of 5500000 are sold for $15,000 EXERCISE 162 Sinple Liquidation LO3 John. Jake, and Joe are partners with capital accounts of $90,000, 578,000, and $64,000 respectively. They share profits and losses in the ratio of 30-40:30. When the partners decide to liquidate, the business has $70,000 in cash. moncash assets totaling $260,000, and $98,000 in liablities. The moncash assets are sold for $270,000, and the creditors are paid 680 Chapter 16 Partnership Liquidation Required A. Prepare a schedule of partnership liquidation B. Prepare journal entries to record each of the following transactions. (1) The salke of the noncash assets. (12) The payment if the creditors. 3) The dislribaticn of cash to the partners. EXERCISE 163 Cash Distribution Schedule LO3 The unsaccessful partnership of the Jones Brothers is about to undergo liquidatioe. They have asked you to esti- male the amount of cash that each brother will receive. They share profits and losses equally Cash Noncash Assets 22.000 110,000 Liabilities Doug.Capital Dave, Capital Dan, Capital $ 35.000 55,000 50,000 Both Doug and Dave are personally solvent, but Dan is not. They estinsate tht they will receive S65,000 from the sale of the noncash assets Requiredi Parpare a schedule to estimale the amount of cash each brothet will receive