The CDG Carlos, Dan, and Gail Partnership has decided to liquidate as of December 1, 20X6. A balance sheet on the date follows CDG PARTNERSHIP
Balance Sheet
At December 1, 20X6
Assets
Cash $ 30,500
Accounts Receivable (net) 86,000
Inventories 111,000
Property, Plant, and Equipment (net) 322,000
Total Assets $ 549,500
Liabilities and Capital
Liabilities:
Accounts Payable $ 286,500
Capital:
Carlos, Capital $ 131,000
Dan, Capital 61,000
Gail, Capital 71,000
Total Capital 263,000
Total Liabilities and Capital $ 549,500
Additional Information
1. Each partner’s assets (excluding partnership capital interests) and personal liabilities of each partner as of December 1, 20X6, follow:
Carlos Dan Gail
Personal assets $ 261,000 $ 311,000 $ 361,000
Personal liabilities (235,500) ( 234,500 ) (337,500)
Personal net worth $ 25,500 $ 76,500 $ 23,500
2. Carlos, Dan, and Gail share profits and losses in the ratio 20:40:40.
3. CDG sold all noncash assets on December 10, 20X6, for $269,500.
Required:
a. Prepare a statement of realization and liquidation for the CDG Partnership on December 10, 20X6. (Do not round your intermediate calculations. Round your final answers to the nearest whole dollar.)
Preliquidation balance
Sale of assets and distribution of loss
Cash contributed by Gail to extent of positive net worth
Distribution of deficit of insolvent partner
Contribution by Dan to remedy deficit
Payment to creditors
Payment to partner
Postliquidation balances
b. Prepare a schedule of the net worth of each of the three partners as of December 10, 2006, after the liquidation of the partnership is completed assuming that no other events occurred in the 10-day period that changed any of the partners’ personal assets and personal liabilities.
Personal assets excluding partnership capital interest
Personal liabilites
Personal net worth, excluding partnership capital interest, Dec 1, 20X6
Contribution to partnership
Liquidating distribution from partnership
Net worth Dec 10, 20X6