topic liquidation schedule safe payment schedule lo 5 18 on the date the partners in 4314294

topic liquidation schedule safe payment schedule lo 5 18 on the date the partners in 4314294

 

Topic: Liquidation Schedule—Safe Payment Schedule

LO: 5

18.On the date the partners in the ABCD partnership decided to dissolve their partnership, the partners had the following pre-liquidation Capital Account balances:

Partner A, capital

$112,000

Partner B, capital

164,000

Partner C, capital

72,000

Partner D, capital

48,000

A, B, C and D share residual profits and losses in a 4:3:2:1 ratio. Accrued liabilities at the date of dissolution total $40,000 and noncash assets equal $420,000. During the first month of liquidation, assets having a book value of $220,000 were sold for $124,000. During the second month, assets having a book value of $128,000 were sold for $112,000. 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.

Required:Prepare an installment liquidation schedule along with the necessary, supporting Safe Payment Schedules.

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