does somebody can help me with this problem 496857
2. The partnership of Douglas, Krismerry, and Frank has the following trial balance on December 31, 2013:
Debit Credit
Cash 25,000
Accounts Receivable (net) 35,000
Inventory 40,000
Plant and Equipment (net) 220,000
Accounts Payable 45,000
Douglas, Capital 125,000
Krismerry, Capital l95,000
Frank, Capital l55,000
320,000 320,000
The partners share profits and losses as follows: Douglas, 50 percent; Krismerry, 30 percent; and Frank, 20 percent. The partners have decided to liquidate their partnership by installments. Cash is distributed to the partners at the end of each month. A summary of the liquidation transactions follows:
January
a. $30,000 is collected on accounts receivable; balance is uncollectible.
b. $25,000 received for the entire inventory.
c. $1,500 liquidation expense paid.
d. $45,000 paid to creditors.
e. $10,000 cash retained in the business at the end of the month.
February
f. $2,000 in liquidation expenses paid.
g. As part payment of his capital, Frank accepted an item of special equipment that he developed, which had a book value of $10,000. The partners agreed that a value of $14,000 should be placed on this item for liquidation purposes.
h. $5,000 cash retained in the business at the end of the month.
March
i. $155,000 received on sale of remaining plant and equipment.
j. $1,000 liquidation expenses paid. No cash retained in the business.
Required:Prepare a statement of partnership realization and liquidation with supporting schedules of safe payments to partners.
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