Question
The partnership of Ace, Cid, and Ben is going to be liquidated immediately. The partnerships financial position on December 31, 2016, is as follows: Cash
The partnership of Ace, Cid, and Ben is going to be liquidated immediately. The partnerships financial position on December 31, 2016, is as follows:
| Cash | $110,000 | Ace capital (35%) | 55,000 |
| Other assets | 50,000 | Cid capital (35%) | 65,000 |
| Loan to Cid | 10,000 | Ben capital (30%) | 50,000 |
| $170,000 | $170,000 |
The partners decide to liquidate the business on January 3, 2017.
Required:
Prepare a safe payments schedule to show the amount of cash to be distributed to each partner if all available cash, except for a $10,000 contingency fund.
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Financial and Managerial Accounting
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
11th Edition
9780538480901, 9781111525774, 538480890, 538480904, 1111525773, 978-0538480895
