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Fundamentals of Advanced Accounting 5th Edition by Joe Ben Hoyle,Thomas Schaefer,Timothy Doupnik
Edition 5ISBN: 978-1260575910Fundamentals of Advanced Accounting 5th Edition by Joe Ben Hoyle,Thomas Schaefer,Timothy Doupnik
Edition 5ISBN: 978-1260575910 Exercise 24
The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liqiuidate its business property. A balance sheet drawn up at this time shows the following account balances:
The following transactions occur in liquidating this business:
• Distributed safe capital balances immediately to the partners. Liquidation expenses of $9,000 are estimated as a basis for this computation.
• Sold noncash assets with a book value of $80,000 for $48,000.
• Paid all liabilities.
• Distributed safe capital balances again.
• Sold remaining noncash assets for $44,000.
• Paid liquidation expenses of $7,000.
• Distributed remaining cash to the partners and closed the financial records of the business permanently.
Produce a final schedule of liquidation for this partnership.
The following transactions occur in liquidating this business:
• Distributed safe capital balances immediately to the partners. Liquidation expenses of $9,000 are estimated as a basis for this computation.
• Sold noncash assets with a book value of $80,000 for $48,000.
• Paid all liabilities.
• Distributed safe capital balances again.
• Sold remaining noncash assets for $44,000.
• Paid liquidation expenses of $7,000.
• Distributed remaining cash to the partners and closed the financial records of the business permanently.
Produce a final schedule of liquidation for this partnership.
Explanation
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Liquidation of partnership:
If a partne...
Fundamentals of Advanced Accounting 5th Edition by Joe Ben Hoyle,Thomas Schaefer,Timothy Doupnik
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