Question
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:
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 | $ | 93,000 | Accounts payable | $ | 48,000 | |||
| Other assets | 815,000 | Ferris, loan | 54,000 | |||||
| Hardwick, loan | 44,000 | Hardwick, capital | 380,000 | |||||
| Saunders, capital | 240,000 | |||||||
| Ferris, capital | 230,000 | |||||||
| Total assets | $ | 952,000 | Total liabilities and capital | $ | 952,000 |
The partners decide to liquidate the partnership. Forty percent of the other assets are sold for $125,000. Prepare a proposed schedule of liquidation at this point in time. (Amounts to be deducted should be entered with a minus sign.)
| HARDWICK, SAUNDERS, AND FERRIS | ||||||
| Proposed Schedule of Liquidation | ||||||
| Cash | Other Assets | Accounts Payable | Hardwick, Loan and Capital | Saunders, Capital | Ferris, Loan & Capital | |
| Beginning balances | ??? | ??? | ??? | ??? | ??? | ???? |
| Sold assets | ??? | ??? | ??? | ??? | ??? | ??? |
| Adjusted balances | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
| Max loss on remaining noncash assets | ??? | ??? | ??? | ??? | ??? | ??? |
| Paid liabilities | ??? | ??? | ??? | ??? | ??? | ??? |
| Safe payments | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
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Documentation Improvement Methods The New Accounting Manual
Authors: Athar Murtuza
2nd Edition
0471379387, 978-0471379386
