The CDG Carlos, Dan, and Gail Partnership has decided to liquidate as of December 1, 20X6. A balance sheet on the date follows: $ 25,000 75,000 100,000 300.000 $ 500.000 CDG PARTNERSHIP Balance Sheet At December 1, 20X6 Assets Cash Accounts Receivable (net) Inventories Property, plant and Equipment (net) Total Assets Liabilities and Capital Liabilities: Accounts Payable Capital Carlos, Capital Dan, Capital Gail, Capital Total Capital Total Liabilities and Capital $270.000 $120,000 50,000 60,000 230,000 $500,000 Additional Information 1. Each partner's personal ossets (excluding partnership capital interests) and personal liabilities as of December 1, 20X6, follow! Personal assets Personal liabilities Carlos $ 250.000 230.000) 3 Dan $300,000 240.000) AAA Gail $ 350.000 325,000) 9A Additional information 1. Each partner's personal assets (excluding partnership capital interests) and personal liabilities as of December 1, 20X6, follow: Personal assets Personal liabilities Personal net worth Carlos $ 250,000 (230,000) $ 20,000 Dan $300,000 (240,000) $60,000 Gail $350,000 (325,000) $ 25,000 2. Carlos, Dan, and Gail share profits and losses in the ratio 20:40:40. 3. CDG sold all noncash assets on December 10, 20X6, for $260,000. Required: a. Prepare a statement of realization and liquidation for the CDG Partnership on December 10, 20X6. (Do not round your intermediate calculations. Round your final answers to nearest whole dollar.) CDG PARTNERSHIP Statement of Realization and Liquidation Lump-sum Liquidation on December 10, 20X6 Liabilities $ 270,000 Preliquidation balances Cash Noncash Assets 25,000 $ 475,000 200,000 475,000 285,000 0 Capital Balances Carlos Dan Gail $ 120,000 S 50,000 $ 60,000 43,000 86,000 86.000 $ 77,000 $ (36,000) $ (26,000) Sale of assets and distribution of loss $ 270,000 CDG PARTNERSHIP Statement of Realization and Liquidation Lump-sum Liquidation on December 10, 20X6 18 Preliquidation balances Cash Noncash Assets Liabilities $ 25,000 $ 475,000 $ 270,000 260,0001 475,000 285,000 $ 0 $ 270,000 310,000 $ 595,000 $ 0 $ 270,000 Capital Balances Carlos Dan Gall $ 120,000 $ 60,000 $ 60,000 43,000 86,000 86,000 $ 77,000 $ (36,000) S (26,000) Sale of assets and distribution of loss Cash contributed by Gail to extent of positive net worth $ 77,000 $ (36,000) $ (26,000) Distribution of deficit of insolvent partner 595,000 0 $ 270,000 $ 77,000 $ (36,000) $ (26,000) Contribution by Dan to remedy deficit $ 595,000 S O S 270,000 $ 77,000 $ (36,000) 5 (26,000) Payment to creditors $ 595,000 0 $ 270,000 $ 77,000 $ (36,000) S (26,000) Payment to partner Postliquidation balances $ 595,000 $ O S 270,000 $ 77,000 S (36,000) S (26,000) b. Prepare a schedule of the net worth of each of the three partners as of December 10, 2006, after the liquidation of the partnership is completed assuming that no other events occurred in the 10-day period that changed any of the partners personal assets and personal liabilities. (Round your answers to the nearest whole dollar.) CDG PARTNERSHIP Net Worth of Partners December 10, 20X6 Carlos Dan Gail 0 $ 0 $ Personal assets, excluding partnership capital interests Personal liabilities Personal net worth, excluding partnership capital interests, Dec. 1, 20X6 Contribution to partnership Liquidating distribution from partnership Net worth, December 10, 20X6 0 $ 0
