Assessment 4 Instructions: Partnerships
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Assessment 4 Problem Template
Partnership Operations
Reporting a change in the composition of a partnership. Calculate your answers here.
a. Exact amount of investment.
b. Implied value of partnership.
c. P's investment.
d. Total capital after investment.
e. N's capital balance.
Partnership Liquidation Schedule
Produce a schedule of liquidation
Edmonds, Beatty, and Elder Schedule of Partnership Liquidation Final Balances
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Cash |
Noncash Assets |
Liabilities |
Edmonds, Capital (60%) |
Beatty, Capital (20%) |
Elder, Capital (20%) |
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Beginning balances |
$105,600 |
$389,400 |
$77,000 |
$222,200 |
$61,600 |
$134,200 |
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Distribution of $8,800 (cash in excess of liabilities and estimated liquidation expenses) in accordance with pre-distribution plan |
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Updated balances |
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Noncash assets sold |
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Updated balances |
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All liabilities are paid |
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Updated balances |
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Distribution of $105,600 (cash in excess of liabilities and estimated liquidation expenses) in accordance with pre-distribution plan. First distribution |
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Next |
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Next |
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Updated balances |
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Noncash assets sold |
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Updated balances |
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Paid liquidation expenses |
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Updated balances |
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Final distribution based on ending capital account balances |
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Ending balance |
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Edmonds, Capital |
Beatty, Capital |
Elder, Capital |
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Beginning balances |
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Assumed Loss (Explain here, if applicable) |
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Step One balances |
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Assumed Loss (Explain here, if applicable) |
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Step Two balances |
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Predistribution Plan: Show your predistribution plan.
Schedule 2
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Partner |
Capital balance/Loss allocation |
Maximum loss that can be absorbed |
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Edmonds |
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Beatty |
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Elder |
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Schedule 3
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Partner |
Capital balance/Loss allocation |
Maximum loss that can be absorbed |
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Edmonds |
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Elder |
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4
