Question

The following condensed balance sheet is for the partnership of Hardwick, Saunders, and Ferris, who share profits and losses in the ratio of 4:3:3, respectively:

Cash	$	87,000			Accounts payable	$	108,000
Other assets		810,000			Ferris, loan		52,000
Hardwick, loan		53,000			Hardwick, capital		320,000
					Saunders, capital		240,000
					Ferris, capital		230,000
Total assets	$	950,000			Total liabilities and capital	$	950,000

The partners decide to liquidate the partnership. Forty percent of the other assets are sold for $155,000. Prepare a proposed schedule of liquidation at this point in time. (Amounts to be deducted should be entered with a minus sign.)

HARDWICK, SAUNDERS, AND FERRIS
Proposed Schedule of Liquidation
	Cash	Other Assets	Accounts Payable	Hardwick, Loan and Capital	Saunders, Capital	Ferris, Loan & Capital
Beginning balances
Sold assets
Assumed: loss on remaining assets
Paid liabilities
Safe balances

Answer 1

	Cash	Other Assets	Accounts Payable	Hardwick, Loan and Capital	Saunders, Capital	Ferris, Loan & Capital
Beginning balances	$87,000	$810,000	$108,000	$267,000	$240,000	$282,000
Sold assets	$155,000	($324,000)		($67,600)	($50,700)	($50,700)
Assumed: loss on remaining assets		($486,000)		($194,400)	($145,800)	($145,800)
Paid liabilities	($108,000)		($108,000)
Safe balances	$134,000	$0	$0	$5,000	$43,500	$85,500