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    ISLAM KHALED ZSC
    The partnership of Wingler, Norris, Rodgers, and Guthrie was formed as an architectural firm but is now terminating operations and liquidating assets. A predistribution plan is prepared showing the partners' beginning capital balances and estimated losses from liquidation transactions. The liquidation transactions include collecting most accounts receivable, selling land/buildings/equipment and inventory, paying liabilities, and making final cash distributions to partners except Guthrie who is insolvent. Journal entries will be made to record the liquidation transactions.

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    ISLAM KHALED ZSC
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    The partnership of Wingler, Norris, Rodgers, and Guthrie was formed as an architectural firm but is now terminating operations and liquidating assets. A predistribution plan is prepared showing the partners' beginning capital balances and estimated losses from liquidation transactions. The liquidation transactions include collecting most accounts receivable, selling land/buildings/equipment and inventory, paying liabilities, and making final cash distributions to partners except Guthrie who is insolvent. Journal entries will be made to record the liquidation transactions.

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    The partnership of Wingler, Norris, Rodgers, and Guthrie was formed as an architectural firm but is now terminating operations and liquidating assets. A predistribution plan is prepared showing the partners' beginning capital balances and estimated losses from liquidation transactions. The liquidation transactions include collecting most accounts receivable, selling land/buildings/equipment and inventory, paying liabilities, and making final cash distributions to partners except Guthrie who is insolvent. Journal entries will be made to record the liquidation transactions.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    100 views2 pages

    Question PDF

    Uploaded by

    ISLAM KHALED ZSC
    The partnership of Wingler, Norris, Rodgers, and Guthrie was formed as an architectural firm but is now terminating operations and liquidating assets. A predistribution plan is prepared showing the partners' beginning capital balances and estimated losses from liquidation transactions. The liquidation transactions include collecting most accounts receivable, selling land/buildings/equipment and inventory, paying liabilities, and making final cash distributions to partners except Guthrie who is insolvent. Journal entries will be made to record the liquidation transactions.

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    of 2

    11/12/2020 Assignment Print View

    1. Award: 12.00 points

    Problem 10-32 (Algo) (LO 10-2, 10-7)

    The partnership of Wingler, Norris, Rodgers, and Guthrie was formed several years ago as a local architectural firm. Several partners
    have recently undergone personal financial problems and have decided to terminate operations and liquidate the business. The
    following balance sheet is drawn up as a guideline for this process:

    Cash $ 33,000 Liabilities $ 70,000


    Accounts receivable 100,000 Rodgers, loan 53,000
    Inventory 119,000 Wingler, capital (30%) 147,000
    Land 94,000 Norris, capital (10%) 106,000
    Building and equipment (net) 177,000 Rodgers, capital (20%) 83,000
    Guthrie, capital (40%) 64,000
    Total assets $ 523,000 Total liabilities and capital $ 523,000

    When the liquidation commenced, liquidation expenses of $15,000 were anticipated as being necessary to dispose of all property.

    Part A
    Prepare a predistribution plan for this partnership.

    Part B
    The following transactions transpire during the liquidation of the Wingler, Norris, Rodgers, and Guthrie partnership:

    1. Collected 90 percent of the total accounts receivable with the rest judged to be uncollectible.
    2. Sold the land, building, and equipment for $159,000.
    3. Distributed safe payments of cash.
    4. Learned that Guthrie, who has become personally insolvent, will make no further contributions.
    5. Paid all liabilities.
    6. Sold all inventory for $78,000.
    7. Distributed safe payments of cash again.
    8. Paid actual liquidation expenses of $9,000 only.
    9. Made final cash disbursements to the partners based on the assumption that all partners other than Guthrie are personally solvent.

    Prepare journal entries to record these liquidation transactions.

    This study source was downloaded by 100000857890193 from CourseHero.com on 01-03-2023 23:28:15 GMT -06:00

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    11/12/2020 Assignment Print View

    Complete this question by entering your answers in the tabs below.

    Required A Required B

    Prepare a predistribution plan for this partnership. (Do not round intermediate calculations.)

    Rodgers,
    Wingler, Norris, Guthrie,
    Loan and
    Capital Capital Capital
    Capital
    Beginning balances $ 147,000 $ 106,000 $ 136,000 $ 64,000
    Assumed loss of Schedule 1 48,000 16,000 32,000 64,000
    Step one balances $ 99,000 $ 90,000 $ 104,000 $ 0
    Assumed loss of Schedule 2 99,000 33,000 66,000 0
    Step two balances $ 0 $ 57,000 $ 38,000 $ 0
    Assumed loss of Schedule 3 0 19,000 38,000
    Step three balances $ 0 $ 38,000 $ 0 $ 0

     Required A Required B 

    References

    General Journal Difficulty: 3 Hard Learning Objective: 10-07 Develop a predistribution plan
    to guide the distribution of cash in a partnership
    liquidation.

    Problem 10-32 (Algo) Learning Objective: 10-02


    (LO 10-2, 10-7) Prepare journal entries to
    record the transactions
    incurred in the liquidation of
    a partnership.

    This study source was downloaded by 100000857890193 from CourseHero.com on 01-03-2023 23:28:15 GMT -06:00

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