Refer to the Facts in Question 46

question 35

Essay

Refer to the facts in Question 46.The partners have decided to liquidate their partnership by installments instead of accepting the offer of $180,000.Cash is distributed to the partners at the end of each month.A summary of the liquidation transactions follows:
October
1.$25,000 is collected on accounts receivable;balance is uncollectible.
2.$20,000 received for the entire inventory.
3.$1,500 liquidation expense paid.
4.$40,000 paid to creditors.
5.$10,000 cash retained in the business at the end of the month.
November
6.$2,000 in liquidation expenses paid.
7.As part payment of his capital,Nixon accepted an item of special equipment that he developed,which had a book value of $8,000.The partners agreed that a value of $12,000 should be placed on this item for liquidation purposes.
8.$4,000 cash retained in the business at the end of the month.
December
9.$150,000 received on sale of remaining plant and equipment.
10.$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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Definitions:

Thyroid Hormone

Hormones produced by the thyroid gland that regulate metabolism, energy generation, and neuronal development.

Parathyroid Hormone

A hormone produced by the parathyroid glands that regulates calcium levels in the blood and bone metabolism.

Calcium

A chemical element and essential nutrient in the human body, crucial for bone and tooth formation, blood clotting, and muscle function.