Log in
Accounting
1
answer
0
watching
753
views

Chapter 17: Partnership Liquidation

1. Explain in details "The Liquidation Process"

Watch
1
answer
0
watching
753
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Deanna Hettinger
Deanna HettingerLv2
29 Sep 2019

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share

Related questions

Chapter 17: partnership liquidation
1. Pls explain in full details “installment liquidations”.

Explain the steps in a partnership liquidation process.

What are the implications if the liquidation takes an extended period of time?

Lop partnership started the liquidation process in April. The partners closed the books and presented the following trial balance.

Cash 18,000

Accounts Rec. 80,000

Inventory 50,000

Plant Assets (net) 104,000

Liabilities (80,000)

Smith, capital (40%) (32,000)

Surro, capital (30%) (60,000)

Sally, capital (30%) (80,000)

The partners agreed that each could wait to receive cash until the liquidation is completed. The following events take place during the liquidation.

1. The inventory is sold for $42,000.

2. Plant assets are sold for $95,000.

3. Accounts receivables are sold to a bank for their estimated market value, $75,000.

4. The liabilities are fully paid.

5. Liquidation expenses of $3,000 are incurred.

6. All remaining assets are distributed to the partners.

REQUIRED: Complete the partnership’s Statement of Realization and Liquidation.

Weekly leaderboard

Home
Homework Help 3,900,000
Accounting 580,000
Start filling in the gaps now
Log in