Week 8: Homework i Saved Help Save & Exit Submit Check my work mode : This shows what is correct or Incorrect for the work you have completed so far. It does not Indicate completion. Return to question 6 On January 1, the partners of Van, Bakel, and Cox (who share profits and losses In the ratio of 5:3:2, respectively) decide to terminate operations and liquidate their partnership. The trial balance at this date follows: 10 Debit Credit points cash $ 27, 060 Accounts receivable 84, 006 Inventory 70, 060 Machinery and equipment, net 207, 006 Van, loan 48, 060 Accounts payable 89, 080 Bakel, loan 38, 080 van, capital 127, 080 Bakel, capital 99, 080 cox, capital 83, 080 Totals $ 436,000 $ 436,080 The partners plan a program of plecemeal conversion of the partnership's assets to minimize liquidation losses. All available cash, less an amount retained to provide for future expenses, is to be distributed to the partners at the end of each month. A summary of the liquidation transactions follows: January Collected $60,wee of the accounts receivable; the balance is deemed uncollectible. Received $47,060 for the entire inventory. paid $3,000 in liquidation expenses. paid $85,000 to the outside creditors after offsetting a $4, 000 credit memorandum received by the partnership on January 11. Retained $19,000 cash in the business at the end of January to cover liquidation expenses. The remainder is distributed to the partners. February Paid $4,000 in liquidation expenses. Retained $7,000 cash in the business at the end of the month to cover additional liquidation expenses. March Received $155,000 on the sale of all machinery and equipment. Paid $6,000 in final liquidation expenses. Retained no cash in the business. Prepare proposed schedules of liquidation on January 31, February 28, and March 31 to determine the safe payments made to the partners at the end of each of these three months.* Answer is not complete. Complete this question by entering your answers in the tabs below. January February March Prepare proposed schedule of liquidation to determine the safe payments made to the partners at the end of January. deducted should be entered with a minus sign.) VAN, BAKEL, AND COX PARTNERSHIP Proposed Schedule of Liquidation January 31 Van, Bakel, Capital Capital Cox, Cash Noncash Assets Liabilities and and Capital Loan Loan 20% 50% 30% Balances - January 1 $ 27,000 5 361,000 39,000 79,000 137,000 83,000 Collected accounts receivable 60,000 (84,000) (12,000) (7,200) (4,800) Sold inventory 47,000 (70,000) (11,500) (6,900) (4,600) Paid liquidation expenses (3,000) (1,500) (900) (600) Paid accounts payable (85,000) (89,000) 2,000 1,200 800 Subtotal (actual balances) 46,000 207,000 0 56,000 123,200 73,800 Maximum loss on assets (207,000) (103,500) (62,100) (41,400) Maximum liquidation expenses (19,000) (9,500) (5,700) (3,800) Subtotal (potential balances) 27,000 0 (57,000) 55,400 28,600 Allocation of deficit capital balance 57,000 (34,200) (22,800) Safe payments to partners - January 31 $ 27,000 S 0 5 0 S 0 5 21,200 S 5,800* Answer is not complete. Complete this question by entering your answers in the tabs below. AJenUE[ February March Prepare proposed schedule of liquidation to determine the safe payments made to the partners at the end of February. (Amounts to be entered with a minus sign.) VAN, BAKEL, AND COX PARTNERSHIP Proposed Schedule of Liquidation February 28 Van, Bakel, Cash Noncash Capital Capital Cox, Assets Liabilities and Loan and Loan Capital 50% 30% 20% Balances before January 31 safe payments 46,000 $ 207,000 56,000 $ 123,200 5 73,800 Safe payments to partners - January 31 (27,000) (21,200) Balances - February 1 19,000 207,000 0 56,000 102,000 73,800 Paid liquidation expenses (4,000) (2,000) (1,200) 800) Subtotal (actual balances) 15,000 207,000 0 54,000 100,800 73,000 Maximum loss on assets (207,000) (103,500) (62, 100) (41,400) Maximum liquidation expenses (7,000) (3,500) (2, 100) (1,400) Subtotal (potential balances) 8,000 (53,000) 36,600 30,200 Allocation of deficit capital balance 53,000 (31,800) (21,200) Safe payments to partners - February 28 S 8,000 0 S 0 S 4,800 S 9,000* Answer is not complete. Complete this question by entering your answers in the tabs below. January February March Prepare proposed schedule of liquidation to determine the safe payments made to the partners at the end of March. (Amounts t should be entered with a minus sign.) VAN, BAKEL, AND COX PARTNERSHIP Proposed Schedule of Liquidation March 31 Van, Noncash Capital Bakel, Cox, Cash Assets Liabilities and Capital and Capital Loan Loan 30% 20% 50% Balances before February 28 safe payments 5 69,000 * $ 207,000 $ 54,000 5 143,200 % 5 78,800 X Safe payments to partners - February 28 (62,000) X (47,200) X (14,800) x Balances - March 1 7,000 207,000 54,000 96,000 64,000 Sold machinery 155,000 (207,000) 26,000) (15,600) (10,400) Paid liquidation expenses (6,000) (3,000) (1,800) (1,200) Subtotal (actual balances) 156,000 0 25,000 78,600 52,400 Safe payments to partners - March 31 (280,000) X (25,000) (173,000) x (82,000) * Ending balances - March 31 S (124,000) S 0 S 0 S 0 $ (94,400) 5 (29,600)