Question
The partners agree to liquidate the business and distribute cash when it become available. REQUIRED: PREPARE A CASH DISTRIBUTION PLAN FOR THE L, I, AND
The partners agree to liquidate the business and distribute cash when it become available.
REQUIRED: PREPARE A CASH DISTRIBUTION PLAN FOR THE L, I, AND N PARTNERSHIP. (MUST SHOW ALL WORK)
The year-end balance sheet and residual profit and loss sharing percentages for L, I, and N partnership at December 31, 2016 are as follows.
| cash | $30000 | account payable | $200000 |
| loan to L | 40000 | loan from I | 50000 |
| account receivable | 100000 | L, capital (25%) | 70000 |
| inventory | 100000 | I, capital (25%) | 80000 |
| plant assets | 280000 | N, capital (50%) | 150000 |
| total assets | $550000 | total liabilities and equity | $550000 |
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Fundamentals Of Advanced Accounting
Authors: Joe Ben Hoyle
8th Edition
1260575926, 978-1260575927
