Question

After closing the accounts on July 1, prior to liquidating the partnership, the capital account balances of Gold, Porter, and Sims are $40,800, $58,200, and $25,800, respectively. Cash, noncash assets, and liabilities total $65,700, $107,700, and $48,600, respectively. Between July 1 and July 29, the noncash assets are sold for $86,100, the liabilities are paid, and the remaining cash is distributed to the partners. The partners share net income and loss in the ratio of 3:2:1.

Prepare a statement of partnership liquidation for the period July 1-29. Enter any subtractions (balance deficiencies, payments, cash distributions, divisions of loss, sale of assets) as negative numbers using a minus sign. If an amount is zero, enter in "0".

Gold, Porter, and Sims
Statement of Partnership Liquidation
For the Period Ending July 1-29
	Cash +	Noncash Assets =	Liabilities +	Capital Gold (3/6) +	Capital Porter (2/6) +	Capital Sims (1/6)
Balances before realization	$	$	$	$	$	$
Sale of assets and division of loss	+
Balances after realization	$	$	$	$	$	$
Payment of liabilities
Balances after payment of liabilities	$	$	$	$	$	$
Cash distributed to partners
Final balances	$	$	$	$	$	$

Answer 1

Gold, Porter, and Sims
Statement of Partnership Liquidation
For the Period Ending July 1-29
	Cash +	Noncash Assets =	Liabilities +	Capital Gold (3/6) +	Capital Porter (2/6) +	Capital Sims (1/6)
Balances before realization	65700	107700	48600	40800	58200	25800
Sale of assets and division of loss	86100	-107700	0	-10800	-7200	-3600
Balances after realization	151800	0	48600	30000	51000	22200
Payment of liabilities	-48600	0	-48600	0	0	0
Balances after payment of liabilities	103200	0	0	30000	51000	22200
Cash distributed to partners	-103200	0	0	-30000	-51000	-22200
Final balances	0	0	0	0	0	0