lump sum liquidation the cdg carlos dan and gail partnership has decided to liquidat 733824
Lump Sum Liquidation
The CDG Carlos, Dan, and Gail Partnership has decided to liquidate as of December 1, 20X6. A
balance sheet on the date foll o ws:
CDG P A R TNERSHIP
Balance Sheet
At December 1, 20X6
|
Assets Cash |
$ 25,000 |
|
|
Accounts Receivable (net) |
75,000 |
|
|
Inventories |
100,000 |
|
|
Property, Plant, & Equipment (net) |
300,000 |
|
|
Total Assets |
$500,000 |
|
|
Liabilities & Capital Liabilities: Accounts Payable |
$270,000 |
|
|
Carlos, Capital |
$120,000 |
|
|
Dan, Capital |
50,000 |
|
|
Gail, Capital |
60,000 |
|
|
Total Capital |
230,000 |
|
|
Total Liabilities & Capital |
$500,000 |
Capital:
Additional Information
1. Each partner’s personal assets (excluding partnership capital interests) and personal liabilities as of December 1, 20X6, follow:
|
Carlos |
Dan |
Gail |
|||
|
Personal assets |
$250,000 |
$300,000 |
$350,000 |
||
|
Personal liabilities |
(230,000) |
(240,000) |
(325,000) |
||
|
Personal net worth |
$ 20,000 |
$ 60,000 |
$ 25,000 |
2. Carlos, Dan, and Gail share profits and losses in the ratio 20:40:40.
3. CDG sold all noncash assets on December 10, 20X6, for $260,000.
Required
a. Prepare a statement of realization and liquidation for the CDG Partnership on December 10,
20X6.
b . Prepare a schedule of the net worth of each of the three partners as of December 10, 2006, after the partnership liquidation is completed.