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    Termination and Liquidation of a Business

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    Good Evening,

    I'm having a little difficulty understanding this problem. I entered some of the values, but I'm confused. Please advise.

    The Partnership of Frick, Wilson and Clarke has elected to cease all operations and liquidate it's business property.
    A balance sheet drawn up at this time shows the following account balances:

    Cash................................$48,000 Liabilities.........................$35,0000
    Non Cash Assets...........177,000 Frick, Capital 60%...........101,000

    wilson,Capital 20%..........28,000
    Clarke, Capital 20%...........61,000

    Total Assets................$225,000 Total Liabilities and Capital $225,000

    The Following transactions occur in liquidating this business:
    ~Distributed safe captial balances immediately to the partners. Liquidation expenses of $9000
    ~Sold noncash assets with a book calue 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

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    https://brainmass.com/business/accounting/termination-liquidation-business-322031

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    PROBLEM

    The Partnership of Frick, Wilson and Clarke has elected to cease all operations and liquidate it's business property.
    A balance sheet drawn up at this time shows the following account ...

    Solution Summary

    Termination and liquidation of a business are examined.

    $2.19

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