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The following condensed balance sheet is for the partnership of Hardwick, Saunders, and Ferris, who share...

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 $ 92,000 Accounts payable $ 72,000
Other assets 810,000 Ferris, loan 53,000
Hardwick, loan 43,000 Hardwick, capital 370,000
Saunders, capital 230,000
Ferris, capital 220,000
Total assets $ 945,000 Total liabilities and capital $ 945,000

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.

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
Business   Accounting   
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Answer #1
HARDWICK, SAUNDERS, AND FERRIS
Proposed Schedule of Liquidation
Cash Other Assets Accounts Payable Hardwick, Loan and Capital Saunders, Capital Ferris, Loan & Capital
Beginning balances 92000 810000 72000 327000 230000 273000
370000-43000 220000+53000
Sold assets 155000 324000 0 -67600 -50700 -50700
810000*40% (324000-155000)/10*4 (324000-155000)/10*3 (324000-155000)/10*3
Assumed: loss on remaining assets 486000 -194400 -145800 -145800
810000*60% 486000/10*4 486000/10*4 4860000/10*3
Paid liabilities -72000 0 -72000
Safe balances 175000 65000 33500 76500
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