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 Cash Adams, Loan Other Assets Total Assets $ 54,000 12,800 228,000 $ 294,800 Liabilities and Capital Liabilities Adams, Capital Peters, Capital Blake, Capital Total Liabilities and Equities $ 46,200 70,400 96,000 82,200 $ 294,800 Liquidation expenses are expected to be negligible. No interest accrues on loans with partners after termination of the business During the liquidation process for the APB Partnership, the following events occurred: 1. During the first month of liquidation, noncash assets with a book value of $92,000 were sold for $70,500, and $25,000 of the liabilities were paid. 2. During the second month, the remaining noncash assets were sold for $77,000. The loan receivable from Adams was collected, and the rest of the creditors were paid 3. Cash is distributed to partners at the end of each month

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 Cash Adams, Loan Other Assets Total Assets $ 54,000 12,800 228,000 $ 294,800 Liabilities and Capital Liabilities Adams, Capital Peters, Capital Blake, Capital Total Liabilities and Equities $ 46,200 70,400 96,000 82,200 $ 294,800 Liquidation expenses are expected to be negligible. No interest accrues on loans with partners after termination of the business During the liquidation process for the APB Partnership, the following events occurred: 1. During the first month of liquidation, noncash assets with a book value of $92,000 were sold for $70,500, and $25,000 of the liabilities were paid. 2. During the second month, the remaining noncash assets were sold for $77,000. The loan receivable from Adams was collected, and the rest of the creditors were paid 3. Cash is distributed to partners at the end of each month

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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