WITH WHAT IS THE PROCEDURE TO ANSWER THESE QUESTIONS EXPECIALLY DEALING WITH LIQUIDATION

CHAPTER 16 ADVANCED FINANCIAL ACCOUNTING QUESTION 2.After working for In the Kitchen remodeling business for several years, Terry and Phyllis decided to go into business for themselves and formed the Kitchens Just for You partnership. Three years ago, they admitted Connie as a partner and recognized goodwill at that time because of her good client list for planned kitchen makeovers. However, they were not able to gain a sufficient market for new customers and on September 1, 20X9, they agreed to dissolve and liquidate the business. They decided on an installment liquidation to complete the projects already initiated. The balance sheet, with profit and loss- sharing percentages at the beginning of liquidation, is as follows: ASSETS: CASH 22,000 RECIEVABLES 54,000 TERRY LOAN 9,000 INVENTORY 52,000 GOODWILL 30,000 TOTAL ASSETS 167,000 KITCHENS FOR YOU BALANCE SHEET SEP 01 2009 LIABILITIES AND EQUITY ACCOUNTS PAYABLES 43,000 CONNIE LOAN 16,000 TERRY CAPITAL 30% 13,000 PHYLIS CAPITAL 50% 38,000 CONNIE CAPITAL 20% 57,000 TOTAL LIABILITIES AND EQUITY 167,000 Connie's loan was for working capital; the loan to Terry was for his unexpected personal medical bills. During September 20X9, the first month of liquidation, the partnership collected $32,000 in receivables and decided to write off $10,000 of the remaining receivables. Sales of one-half of the book value of the inventory realized a loss of $5,000. The partners estimate that the costs of liquidating the business (newspaper ads, signs, etc.), are expected to be $7,000 for the remainder of the liquidation process. Required: Prepare a schedule of safe payments to partners as of September 30, 20X9, to show how the available cash should be distributed to the partners. Please follow the practical guidelines when completing this worksheet. QUESTION 3. Adams, Peters, and Blake share profits and losses for their APB Partnership in a ratio of 2:3:5. When they decide to liquidate, the balance sheet is as follows: Assets Liabilities and Equities Liabilitie Cash $ 55,000 $ 46,500 s Adam Adams, 13,000 71,500 s, Loan Capital Other Peters, 230,000 97,500 Assets Capital Blake, 82,500 Capital Total Assets $ 298,000 Total Liabilitie s& Equities $ 298,000 Liquidation expenses are expected to be negligible. No interest accrues on loans with partners after termination of the business. Required: Prepare a cash distribution plan for the APB Partnership. Please follow the practical guidelines when completing this worksheet. QUESTION 4. The CDG Carlos, Dan, and Gail Partnership has decided to liquidate as of December 1, 20X6. A balance sheet on the date follows: CDG PARTNERSHIP BALANCE SHEET AT DECEMBER 1 20X6 ASSETS: CASH ACCOUNTS RECIEVABLE (NET) INVENTORIES PROPERTY PLANTS AND EQUIP (NET) TOTAL ASSETS LIABILITIES AND CAPITAL: Liabilities: ACCOUNTS PAYABLES Capital: Carlos capital 133,000 Dan capital 63,000 Gail capital 23,000 TOTAL CAPITAL TOTAL LIABILITIES AND CAPITAL 31,500 88,000 113,000 326,000 558,500 289,500 269,000 558,500 Additional Information 1.Each partner's assets (excluding partnership capital interests) and personal liabilities of each partner as of December 1, 20X6, follow: CARLOS DAN GAIL PERSONAL ASSETS 263,000 313,000 363,000 PERSONAL LIABILITIES (236,500) (233,500) (340,700) PERSONAL NETWORTH 26,500 79,500 22,300 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 $271,500. 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 the nearest whole dollar.) 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. QUESTION 5. On January 1, 20X1, partners Art, Bru, and Chou, who share profits and losses in the ratio of 6:2:2, respectively, decide to liquidate their partnership. The partnership trial balance at this date follows: DEBIT CREDIT CASH 18,400 ACCOUNTS RECIEVABLES 67,000 INVENTORY 53,000 MACHINERY 190,000 ACCOUNTS PAYABLE: 53,400 ART CAPITAL 89,000 BRU CAPITAL 111,000 CHOU CAPITAL 75,000 TOTAL 328,000 328,400 The partners plan a program of piecemeal conversion of 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 20X1 1. Collected $51,800 on accounts receivable; the balance is uncollectible. 2. Received $38,600 for the entire inventory. 3. Paid $2,200 liquidation expenses. 4. Paid $50,200 to creditors, after offset of a $3,200 credit memorandum received on January 11, 20X1. 5. Retained $10,400 cash in the business at the end of the month for potential unrecorded liabilities and anticipated expenses. February 20X1 6. Paid $4,200 liquidation expenses. 7. Retained $6,200 cash in the business at the end of the month for potential unrecorded liabilities and anticipated expenses. March 20X1 8. Received $146,800 on sale of all items of machinery and equipment. 9. Paid $5,200 liquidation expenses. 10. Retained no cash in the business. Required: Prepare a statement of partnership liquidation for the partnership with schedules of safe payments to partners. (Round your answers to nearest whole dollar.) The DSV Partnership decided to liquidate as of June 30, 20X5. Its balance sheet as of this date follows: DSV PARTNERSHIP Balance Sheet At June 30, 20X5 Asse ts Cas h Acco unts Recei vable (net) Inve ntorie s Prop erty, Plant and Equip ment (net) $ 50,000 95,000 75,000 500,00 0 Total Asset s Liabi lities and Partn ers' Capit al Liabi lities: A ccoun ts Payab le Part ners' Capit al: D , Capit al S , Capit al V, Capit al $ 100,00 0 140,00 0 75,000 $ 720,00 0 $ 405,00 0 Total Capit al 315,00 0 Total Liabilit ies and Capit al $ 720,00 0 Additional Information 1. The personal assets (excluding partnership loan and capital interests) and personal liabilities of each partner as of June 30, 20X5, follow: D P er so nal as set s P er so nal lia bili tie s P er so nal ne t wo rth $ S 250, 000 $ (270 ) ,000 $ (20, ) 000 450, 000 V $ (420 ) ,000 $ 30,0 00 300, 000 (240 ) ,000 $ 60,0 00 2. The DSV Partnership was liquidated during the months of July, August, and September. The assets sold and the amounts realized follow: Month July Assets Sold Inventories Carrying Amount $ 50,000 Amount Realized $ 45,000 Accounts receivable (net) Property, plant and equipment August Inventories Accounts receivable (net) SeptemberAccounts receivable (net) Property, plant and equipment 60,000 40,000 400,000 305,000 $ 25,000 10,000 $ 25,000 $ 18,000 4,000 $ 10,000 100,000 45,000 Required: Prepare a statement of partnership realization and liquidation for the DSV Partnership for the three-month period ended September 30, 20X5. D, S, and V share profits and losses in the ratio 50:30:20, respectively. The partners wish to distribute available cash at the end of each month after reserving $10,000 of cash at the end of both July and August to meet unexpected liquidation expenses. Actual liquidation expenses incurred and paid each month amounted to $2,500. Support each cash distribution to the partners with a schedule of safe installment payments