高级会计学(第10版)习题答案ch16-beams10e-sm

Chapter16

PARTNERSHIPLIQUIDATION

AnswerstoQuestions

1

Dissolutionofapartnershipterminatesthepartnershipasalegalentity,butthepartnershipbusinessmaycontinueunderanewagreement.Whenapartnershipisliquidated,however,thepartnershipisterminatedbothasalegalandasabusinessentity.Thus,apartnershipmaybedissolvedwithoutliquidation,butitmaynotbeliquidatedwithoutdissolution.

2

Asimplepartnershipliquidationistheliquidationofasolventpartnershipinwhichallpartnershaveequitycapitalandallgainsandlossesarerealizedandrecognizedbeforeanydistributionsaremadetothepartners.Insimplepartnershipliquidations,onlyonecashdistributionismadeandtheamountsdistributedtoindividualpartnersareequaltotheirpredistributioncapitalaccountbalances.

3

ThepriorityrankingforthedistributionofassetsinliquidationpursuanttoRUPAis

RankI

RankII

Amountsowedtocreditorsotherthanpartnersand

amountsowedtopartnersotherthanforcapitalandprofits

Amountsduetopartnersafterallassetshavebeenliquidatedandliabilitiespaid.

4

Thedistributionofassetsforcapitalinterests(RankIII)priortothepaymentofloanbalancestothepartners(RankII)isnotinaccordancewiththeRevisedUniformPartnershipAct.Butthepartnersmayagreetodistributecashorotherassetsforcapitalinterestsbeforealllossesonliquidationareknown.Withagreementamongallpartners,distributionstothepartnerswouldbebasedoneachpartner’sequity(combinedcapitalandloanbalances)inrelationtohisshareofpossiblefuturelosses.Apartnerwithsufficientequitytoabsorbhisshareofpossiblefuturelosseswouldbeincludedindistributions,butapartnerwithloanstothepartnershipwouldnotbeincludedindistributionsuntilhisequitywassufficienttoabsorbhisshareofpossiblefuturelosses.

5

Theassumptionsfordeterminingdistributionstopartnerspriortorecognitionofallgainsandlossesonliquidationare(1)allpartnersarepersonallybankruptsuchthatnopartnercouldcontributepersonalassetsintothepartnershipand(2)allnoncashassetsarepossiblelossesandshouldbeconsideredactuallossesforpurposesofdeterminingamountstobedistributed.Inaddition,liquidationexpensesandprobablelosscontingenciesshouldbeestimatedandassumedtobeactuallossesforpurposesofdeterminingadvancedistributions.

6

Capitalbalancesrepresentonefactorindeterminingapartner’sequity,butloansandadvancespayabletoandreceivablefromthepartnershiparefactorsthatmustalsobeconsideredincalculatingsafepayments.Partnerequities,ratherthancapitalbalances,areusedinsafepaymentschedulesinordertoavoidmakingdistributionstopartnersthatmayendupwithdebitcapitalbalances;i.e.,owingmoneytothepartnership.

7

Safepaymentcomputationspersedonotaffectledgeraccountbalances.Actualcashdistributionsbasedonsafepaymentscomputationsdoreducepartnershipassetsandequitiesandrequirerecognitioninledgeraccounts.

16-2PartnershipLiquidation

8Astatementofpartnershipliquidationisasummaryoftransactionsandbalancesforapartnershipduringitsliquidationstage.Suchstatementsprovidecontinuousrecordsofliquidationevents.Interimliquidationstatementsareparticularlyhelpfulinshowingtheprogressthathasbeenmadetowardliquidationtodateandinidentifyingremainingassetstobeliquidatedandliabilitiestobepaid.Interimliquidationstatementsarehelpfultopartnersandcreditorsinprovidingabasisforcurrentdecisionsaswellasfutureplanning.Liquidationstatementsareimportantlegaldocumentsforpartnershipliquidationsthatcomeunderthejurisdictionofacourt.

9Availablecashmaybedistributedtopartnersaccordingtotheirprofitandlosssharingratiosonlywhennonpartnerliabilitieshavebeensatisfiedandpartnerequities(capitalandloanbalancescombined)arealignedwiththerelativeprofitandlosssharingratiosofthepartners.Intheabsenceofloansoradvancespayabletoorreceivablesfromindividualpartners,cashcanbedistributedtopartnersintheirprofitandlosssharingratioswhencapitalbalancesareintherelativeprofitandlosssharingratiosofthepartnersandallnonpartnerliabilitieshavebeenpaid.

10Vulnerabilityranksareanorderingofpartnersonthebasisoftheadequacyoftheirequitiesinthepartnershiptoabsorbpossiblepartnershiplosses.Theorderingistypicallyfromthemostvulnerabletotheleastvulnerable.Vulnerabilityranksareusedinthepreparationofassumedlossabsorptionschedules,which,inturn,areusedintheconstructionofcashdistributionplans.

11

12

Partnershipinsolvencyoccurswhenpartnershipliabilitiesexceedpartnershipassets.Inthiscase,allavailablecashisdistributedtopartnershipcreditors.Individualpartnerswillbecalledupontousetheirpersonalassetstosatisfytheremainingclaimsofthepartnershipcreditors.

Partnerswithcreditcapitalbalancesafterallpartnershipassetshavebeendistributedinliquidationhaveaclaimagainstpartnerswithdebitcapitalbalances.Ifthepartnerswithdebitbalancesarepersonallysolvent,theyshouldpayamountsequaltotheirdebitbalancesintothepartnershipsothatpartnerswithcreditbalancescanreceivetheirpartnershipclaimsinfull.Ifpartnerswithdebitcapitalbalancesareinsolvent,thepartnerswithcreditbalanceswillabsorbthelossesoftheinsolventpartnerswithdebitcapitalbalancesinrelationtotheirrelativeprofitandlosssharingratios.

Chapter16

SOLUTIONSTOEXERCISES

SolutionE16-1

ScheduleofCapitalBalances

60%Folly$40,000

(9,000)

CapitalbalancesJanuary1,2008

$15,000

Januarylosses:Lumber

16-3

40%Frill

$20,000

(6,000)

($40,000bookvalue-$25,000salesprice)

Receivables4,000(2,400)(1,600)

($25,000-$21,000collection)

Capitalbalancesbeforedistribution$28,600$12,400

Cashdistribution:

Accountspayable

Folly

Frill

Totalcash

$15,000

28,600

12,400$56,000

Cashbalance:Beginningbalance,$10,000+$25,000+$21,000=$56,000

SolutionE16-2

Saleofinventory

Cash

Inventory

Torecordsaleofinventoryitems.

Distributionofcash

Accountspayable

Cash

Torecordpaymenttocreditors.

Mikecapital

Nancycapital

Okeycapital

Cash

Torecorddistributionofavailable

follows:

$10,000

$10,000

$5,000

$5,000

$12,600

6,200

25,200

cashtopartners

$44,000

computedas

Capital

Balance

-

PossibleLossfromUnsoldInventory

=

Balance

Mikecapital

$15,000

$2,400

$12,600

Nancycapital

8,000

1,800

6,200

Okeycapital

27,000

1,800

25,200

Totals

$50,000

$6,000

$44,000

SolutionE16-3

January1balances

Contingencyfundof$10,000

Possiblelosseson

assetdisposal($120,000)

LossonEthel’spossible

defaultadivided3/7and4/7

Availablecashisdistributed

30%Fred

$85,000

(3,000)

(36,000)46,000

(6,000)40,000

30%Ethel

$25,000

(3,000)

(36,000)(14,000)

14,0000

40%Lucy

$90,000

(4,000)

(48,000)38,000

(8,000)30,000

16-4

PartnershipLiquidation

aNoticethatEthelwouldhaveadebitbalanceinhercapitalaccountifthecontingenciesoccurredandiftheassetswereatotalloss.Inordertodeterminehowmuchcashisavailablefordistribution,FredandLucy’sbalancesmustabsorbEthel’sdebitbalance.

Capital

(5,000)

(2,000)

Chapter16

SolutionE16-4

Beginningbalances

OffsetKim’sloan

Lossonsaleofassets

($180,000-$120,000)

Additionalliability

DistributeKim’sdebit

balance5/7,2/7

Cashdistribution

Kimowes$7,500toJanand

Creditors$60,000

5,000

65,000

$65,000

$3,000toLee.

50%Jan

$59,000

(30,000)

(2,500)26,500

(7,500)$19,000

30%Kim

$29,000

(20,000)

(18,000)

(1,500)(10,500)

10,5000

16-5

20%Lee

$52,000

(12,000)

(1,000)39,000

(3,000)$36,000

SolutionE16-5

ScheduletoCorrect

December31,2008balance

Overvaluedinventory$10,000

Correctedbalances

Thecapitalbalancesareadjustedforthe

partners’residualequityratios.

SolutionE16-6

ScheduletoCorrect

December31,2008balance

Undervaluedinventory($15,000)

Correctedbalances

Thecapitalbalancesareadjustedforthe

partners’residualequityratios.

CapitalAccounts

Bernice

Capital

(30%)

$35,000

(3,000)

$32,000

Anita

(50%)

$40,000

$35,000

errorincomputingnet

CapitalAccounts

Ali

Capital

(40%)$60,000

6,000$66,000

Bart

Capital

(20%)$25,000

3,000$28,000

errorincomputingnet

Colleen

Capital(20%)

$25,000

$23,000

incomeinthe

Carrie

Capital

(40%)$65,000

6,000$71,000

incomeinthe

16-6

SolutionE16-7

PartnershipLiquidation

Evers,Freda,andGracePartnership

SafePaymentSchedule

Partnerequities

Lossonsaleofassets

Possiblelossesa

AllocateEvers’loss

40%Evers$100,000

(52,000)48,000

(84,000)(36,000)

36,000

0

40%Freda$250,000

(52,000)198,000

(84,000)114,000(24,000)

$90,000

20%Grace$170,000

(26,000)144,000

(42,000)102,000(12,000)

$90,000

Total$520,000

(130,000)390,000

(210,000)180,000

$180,000

aRemainingnoncashassetsof$200,000pluscontingencyfundof

$210,000possiblelosses.

Cashtodistribute:Beginningcashbalanceof$100,000plus

ofassetsless$10,000contingencyfundequals$260,000.

Distributionofcash:Accountspayable

Freda

Grace

$10,000equals

$170,000fromsale

$80,000

90,000

90,000$260,000

Chapter16

SolutionE16-8

Jerry,Joan,andJillPartnership

StatementofPartnershipLiquidation

atNovember30,2008

16-7

BalancesNov.30

Offsetreceivable

fromJerry

Write-offpatent

Balancesafter

adjustments

Cashdistribution:

Creditors

Partners

Balances

Cash$8,000

8,000

(4,000)

(4,000)

0

Noncash Assets

$27,000

(3,000)

(8,000)

16,000

$16,000

Liab.

$8,000

8,000

(4,000)

(4,000)

0

40%

Jerry Capital

$10,800

(3,000)

(3,200)

4,600

$4,600

10%

Jill

50%

Joan

CapitalCapital

$13,200$3,000

(4,000)(800)

9,2002,200

$9,200$2,200

(Thissolution

bedistributed

eitherJoanor

assumesthatJoanagreestoadistributionofamountsthatcansafely.Ifshedoesnotagree,nodistributioncanbemadetoJill.)

Jerry,Joan,andJillPartnership

SafePaymentsScheduleatNovember30,2008

Partners’equities

Possibleinventorylosses

AllocateJerry’sdeficit

Safepaymentstopartners

Possible

Losses

$16,000

40%

Jerry

Equity

$4,600

(6,400)(1,800)

1,800

0

50%

Joan

Equity

$13,200

(8,000)5,200

(1,500)$3,700

10%

Jill Equity

$2,200

(1,600)600

(300)$300

47,143

(2,143)

45,000

(45,000)

0

16-8

SolutionE16-9

PartnershipLiquidation

ScheduleforPhase-outofthePartnership

Capitalbalances

Creditors’recovery

fromBetty

Partnershiprecovery

fromBettya

Write-offofBetty’sdeficit

Partnershiprecovery

fromAlice

Write-offofAlice’sdeficit

CashdistributiontoCarle

30%Alice$20,000

20,000

20,000

(35,000)(15,000)

10,000(5,000)

5,0000

40%Betty$(120,000)

30,000(90,000)

20,000(70,000)

70,0000

30%Carle$70,000

70,000

70,000 (35,000)

35,000

35,000

(5,000)30,000

(30,000)0

aBetty’spersonalnetassetsafterpartnershipcreditorrecovery

personalassets-$60,000personalliabilities=$20,000.

Total$(30,000)

30,0000

20,000

20,000

20,000

10,000

30,000

30,000

(30,000)

0

are$80,000

SolutionE16-10

Daniel,Eric,andFredPartnership

Schedule

Capitalbalances

Fred’spaymenttocreditors

Fred’spaymenttothe

partnershipa

Write-offofFred’s

deficitintherelative

profitsharingratioof

DanielandEric4/7:3/7

Daniel’spaymenttothe

partnershipforhis

deficit

WriteoffofDaniel’s

deficittoEric

PaymenttoEric

forPhaseoutofPartnership

40%Daniel30%Eric30%Fred

CapitalCapitalCapital

$10,000

$(90,000)

20,000(70,000)

40,000

$60,000

10,000

60,000

10,00060,000(30,000)

(17,143)(7,143)

30,0000

(12,857)

47,143

5,000(2,143)

2,1430

Total$(20,000)

20,0000

40,00040,000

40,000

5,000

45,000

0

(45,000)

0

aFred’spersonalassetsof$100,000lessthe$40,000

andlessthe$20,000paidtopartnershipcreditors,

hisdebitcapitalaccountbalance.

owedtohispersonalcreditors,

equals$40,000availablefor

Cash

Chapter16

SolutionE16-11

Ace,Ben,Cid,andDon

StatementofPartnershipLiquidation

fortheperiodJune30toJuly31,2008

16-9

Balances

June30,2008

July1,2008

InvestmentofAce

July1,2008

Paymentof

liabilities

Balances

July1,2008

$200,000

200,000400,000

(400,000)

0

Liabilities$400,000

400,000

(400,000)

0

Ace(50%)

Capital$40,000

200,000240,000

240,000

Ben(20%)

Capital$10,000

10,000

10,000

Cid(20%)

Capital$(170,000)

(170,000)

(170,000)

Don(10%)

Capital$(80,000)

(80,000)

(80,000)

July15,2008

InvestmentofCid100,000

InvestmentofDon80,000

180,000

LossonCid’s

Insolvencya180,000

LossonBen’s

insolvency180,000

July31,2008

Finaldistribution(180,000)

0

()Debitcapitalbalanceordeduct.

aAllocatingCid’sinsolvencyto

70,000*2/7=20,000Ben

100,000

240,000

(50,000)190,000

10,000

(20,000)(10,000)

80,0000

(70,000)

70,000

0

(10,000)10,000

180,0000

(180,000)0

Ace&Ben:70,000*5/7=50,000Ace,

SolutionE16-12

Denver,Elsie,FannieandGeorgePartnership

SafePaymentSchedule

January31,2008

Possible

LossesDenverElsieFannieGeorge

Partner’sequityat1/1

Januaryprofit/loss

transactions:

Inventorysale

Landsale

Partner’sequityat1/31

Possiblelosses—noncash

Possiblelosses—contingentPossiblelosses—Fannie

Possiblelosses—George

$395,000

20,000

(20%)$170,000

(6,000) 20,000$164,000

(79,000)

(4,000)

$81,000

(13,000)$68,000 (2,667)

$65,333

(10%)

$80,000

(3,000)

10,000$87,000(39,500)

(2,000)

$45,500

(6,500)$39,000 (1,333)

$37,667

(50%)$140,000

(15,000)

50,000$175,000(197,500)

(10,000)$(32,500) 32,500$0

(20%)

$78,000

(6,000)

20,000$92,000(79,000)

(4,000)

$9,000

(13,000)$(4,000)

4,000

$0

Reed

$25,000 (25,000)

0

ReedCapital

50%

Stacy$25,000

(10,000)15,000

(15,000)0

Stacy

Loan

26.667%

Total$95,000

(50,000)45,000

(37,500)$7,500

StacyCapital

13.333%

20%

16-10

SolutionE16-12(cont’d)

PartnershipLiquidation

Paymentsof$103,000canbesafelymadetoDenverandElsieintheamounts

shownabove.

Check:Cashavailablea

Accountspayable

Contingencies

Availabletopartners

a(250,000land+45,000inv.+28,000rec.+200,000cash)

SolutionE16-13

$523,000

$(400,000)

(20,000)$103,000

1b

2d

3a

Supportingcomputations:Seecashdistributionplanthatfollows.

VulnerabilityRankings

LossAbsorption

Potential

$150,000

50,000

125,000

Vulnerability Ranks

3

1

2

Partners’

Quen

Reed

Stacy

Schedule

Equitiesa$45,000$25,000$25,000

30%

50%

20%

ofAssumedLossAbsorption

Predistributionequities

LosstoabsorbReed

LosstoabsorbStacy

$15,000/40%

Balance

CashDistributionPlan

PriorityCreditors

First$50,000100%

Next$7,500

Next$37,500

Remainder

Quen

$45,000

(15,000)30,000

(22,500)$7,500

Quen

Capital

100%

60%

30%

aEquitybalance=Equity+/-loansto/from

4

5

6

16-11

Chapter16

SolutionE16-14

1

d

Answerbiscorrectforsituationsinwhichallpartnershaveequityin

partnershipassets;inotherwords,creditcapitalbalances.

2

3

d

c

ThedebitbalanceinMaris’scapitalaccountshouldbechargedagainst

theloanpayabletoMaris.

d

Possible

Losses

Netcapitalbalances

Possiblelossoninventories$100,000

Gwen’sdebitbalance50:50

Distributionofcashafter

paymentofaccountspayable

c

Possible

Losses

Netcapitalbalances

Noncashassets:

Accountsreceivable$60,000

Inventories85,000

Plantassets—net200,000

Contingencyfund5,000

$350,000

AllocateDick’spossibledeficit

Distributionofcashafter

paymentof$60,000liabilities

c

Capitalbalances

Wayne’scontribution

Vance’spersonalnetassets

Vance’sremainingdeficitdivided3/7

toUnseland4/7toWayne

Wayne’sremainingpersonalnetassets

tooffsethisdeficitcapitalbalance

50%Gwen

Capital$40,000

(50,000)(10,000)

10,000

0

20%Dick

Capital

$50,000

(70,000)(20,000)

20,000

0

30%Unsel Capital$90,000

90,000

90,000

(9,000)

81,000

81,000

25%Bill

Capital$45,000

(25,000)20,000

(5,000)

$15,000

40%Frank

Capital

$220,000

(140,000)80,000

(10,000)

$70,000

30%Vance

Capital$(60,000)

(60,000)

39,000a(21,000)

21,0000

25%Sissy

Capital$35,000

(25,000)10,000

(5,000)

$5,000

40%Helen

Capital

$155,000

(140,000)15,000

(10,000)

$5,000

40%Wayne

Capital$(100,000)

70,000(30,000)

(30,000)

(12,000)(42,000)

40,000b(2,000)

Wayne’sfinaldeficitallocatedto

Unselanduncollectible(2,000)2,000

AmountofUnsel’spartnershipequity

thatshouldberecoverable$79,0000

Personalnetassets=personalassets-personalliabilities

a(100,000-61,000)=39,000

b(190,000–70,000–80,000)=40,000

Rubble

$15,000

(30,000)(15,000)

15,000

0

Partners’capital

balances

Allocationofpossible

losses

Allocatedeficitsto

Barney

Safepaymentsto

Barney

Journalentrytorecord

Cash

Barneycapital

Bettycapital

Rubblecapital

16-12

SOLUTIONSTOPROBLEMS

SolutionP16-1

PartnershipLiquidation

1JournalentrytodistributeavailablecashonJanuary1

Barneycapital

Cash

$25,000

$25,000

TodistributeavailablecashtoBarneycomputedasfollows:

2

3

SafePaymentsScheduleJanuary1,2008

Possible

Losses

$90,000

Barney$72,000

(30,000)42,000

(17,000)

$25,000

Betty$28,000

(30,000)(2,000)

2,000

0

saleofassetsonFebruary9

$81,000

3,000

3,000

3,000

$72,000

18,000

Inventory

Supplies

Torecordsaleofinventoryitemsandsuppliesandrecognizegain

orloss.

JournalentrytodistributecashonFebruary10

Barneycapital$44,000

Bettycapital25,000

Rubblecapital12,000

Cash$81,000

Todistributecashtopartnersinfinalliquidation.[Amountsare

equaltofinalcapitalaccountbalances.]

Chan$80,000

(80,000)0

Equities

Losstoabsorb

Losstoabsorb($5,0005/8)

Chan

Grunther

Chapter16

SolutionP16-2

Chan,Dickerson,andGruntherPartnership

Vulnerability

Chan

Dickerson

Grunther

ranks

Equity

$80,000210,000205,000

Cash

Distribution

ProfitandLossRatio

20%

30

50

Plan

Loss

Absorption

$400,000

700,000

410,000

Scheduleofassumedlossabsorption

16-13

Vulnerability Rank

1

3

2

Dickerson$210,000

(120,000)90,000

(3,000)$87,000

Cashdistributionplan

PriorityLoanfromChan

CreditorsDickersonCapital

First$90,000100%

Second$50,000100%

Third$37,000

Fourth$8,000

Remainder20%

Grunther$205,000

(200,000)5,000

(5,000)0

DickersonCapital

100%

3/8

30%

Total$495,000

(400,000)95,000

(8,000)$87,000

Grunther

Capital

5/8

50%

16-14

SolutionP16-3

Vulnerability

Fred

Flint

Wilma

Fred,Flint,andWilmaPartnership

CashDistributionPlan

Ranking

PartnershipProfitandLossAbsorption

EquityLossRatioPotential$75,00030%$250,000

20,00020%100,000

60,00050%120,000

PartnershipLiquidation

Vulnerability

Ranking

3

1

2

ScheduleofAssumedLossAbsorption

30%Fred20%Flint50%WilmaTotal

Predistributionequity$75,000$20,000$60,000$155,000

AssumedlosstoabsorbFlint

$20,00020%(30,000)(20,000)(50,000)(100,000)45,000010,00055,000

AssumedlosstoabsorbWilma$10,0005/8

CashDistributionPlan

First$20,000

Next$39,000

Next$16,000

Remainder

(6,000)$39,000

Priority

Creditors

100%

30%Fred

100%

3/8

30%

(10,000)

0

20%Flint

20%

(16,000)$39,000

50%Wilma

5/8

50%

$110,000

IanJoseph

IanJoseph

Chapter16

SolutionP16-4

1

16-15

Gary,Henry,Ian,andJosephPartnership

CashPredistributionPlan

ScheduleofVulnerabilityRanks:

Capitalbalance

LoantoHenry

Partnerequity

Dividedbyprofit

ratio

Lossabsorption

potential

Vulnerabilityranks

Gary

Equity

$300,000

$300,000

40%

$750,000

2

Henry Equity

$320,000

(20,000)

$300,000

30%

$1,000,000

3

Ian

Equity

$100,000

$100,000

20%

$500,000

1

Joseph Equity

$110,000

10%

$1,100,000

4

ScheduleofAssumedLossAbsorption:

Equities

LosstoabsorbIan’s

equity

LosstoabsorbGary’s

equity

LosstoabsorbHenry’s

equity

CashDistributionPlan:

Gary$300,000

(200,000)100,000

(100,000)0

Henry$300,000

(150,000)150,000

(75,000)75,000

(75,000)0

Ian$100,000

(100,000)0

Joseph$110,000

(50,000)60,000

(25,000)35,000

(25,000)$10,000

First$100,000

Next$50,000

Next$10,000

Next$100,000

Next$200,000

Remainder

2Availablecash

First$100,000Next50,000Next10,000Next100,000Next40,000Distributionto

partners

Priority

Liabilities

100%

Gary

Henry

Contingency

Fund

100%

3/4

1/2

40%

3/8

30%

(Profitandloss

todistribute($200,000+$100,000)

PriorityContingency

LiabilitiesFundGaryHenry$100,000

$50,000

75,000

20,000$15,000

$20,000$90,000

100%

1/4

1/8

20%

sharing

10%

ratios)

$300,000

$10,000

25,000

5,000

$40,000

Cash

16-16

SolutionP16-5

PartnershipLiquidation

Eli,Joe,andNed,Consultants

StatementofPartnershipLiquidation

forthemonthendedAugust31,2008

July31balances

Receivables:

Collections

Assumption

Write-off

Liabilitiespaid

Expensespaid

Furniture:

Sold

toJoe

Donated

Predistribution

balances

Topartners

Cash

$13,000

8,000

(6,000)

(3,000)

15,000

27,000 (27,000)

0

Noncash

Assets

$47,000

(8,000)

(3,000)

(1,000)

(25,000)

(4,000)

(6,000)0

Accounts20%Eli

PayableCapital$6,000$24,000

(6,000)

0

(200)

(600)

(2,000)

(600)

(1,200)

19,400 (19,400)

0

30%Joe

Capital

$15,000

(300)

(900)

(3,000)

(1,000)

(900)

(1,800)

7,100 (7,100)

0

50%Ned

Capital

$15,000

(3,000)

(500)

(1,500)

(5,000)

(1,500)

(3,000)

500

(500)

0

SolutionP16-6

Jones,Smith,andTandyPartnership

StatementofPartnershipLiquidation

fortheliquidationperiodJanuary1,2008toMarch31,2008

Balances

January2008

Inventoriessold

Receivablescollections

Predistributionbalance

Cashdistributionto

creditors

BalancesJanuary31

February2008

Landsold

Landandbuildingssold

Receivablescollections

BalancesFebruary28

March2008

Write-offoffurniture