Homework answers / question archive / Option #2: Partnership Transactions Partners in the ABCD Partnership decided to dissolve their partnership

Option #2: Partnership Transactions Partners in the ABCD Partnership decided to dissolve their partnership

Accounting

Share With

Option #2: Partnership Transactions

Partners in the ABCD Partnership decided to dissolve their partnership.  On that date, the partners had the following pre-liquidation capital balances:

A, B, C, and D share residual profits and losses in a 4:3:2:1 ratio. 

Liabilities at the date of dissolution total $100,000, and noncash assets equal $105,000.  During the first month of liquidation, assets having a book value of $55,000 were sold for $31,000.  During the second month, assets having a book value of $32,000, were sold for $28,000.  During the third month, the remaining unsold assets were determined to be worthless.  The partners receive the maximum allowable payment at the end of each month. 

Submission Requirements:

Part 1: Using the ACT470_Mod08-Portfolio_Option02.xls Excel spreadsheet in the Module 8 folder, prepare an installment liquidation schedule along with supporting safe payment schedules.

Part 2: Prepare a PowerPoint presentation to the partners revealing the results of your accounting work. The presentation should include at least 10 slides. Incorporate a visual of the partnership financials into the presentation.