Problem
The CDG/Carlos, Dan, and Gail/Partnership has decided to liquidate as of December 1, 20X6. A balance sheet on the date follows:
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CDG PARTNERSHIP
Balance Sheet
At December 1, 20X6
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Assets
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Cash
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$ 31,000
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Accounts Receivable (net)
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87,000
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Inventories
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112,000
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Property, Plant and Equipment (net)
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324,000
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Total Assets
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$554,000
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Liabilities and Capital
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Liabilities:
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Accounts Payable
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$288,000
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Capital:
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Carlos, Capital
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$132,000
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Dan, Capital
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62,000
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Gail, Capital
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72,000
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Total Capital
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266,000
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Total Liabilities and Capital
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$554,000
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Additional Information
• Each partner's personal assets (excluding partnership capital interests) and personal liabilities as of December 1, 20X6, follow:
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Carlos
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Dan
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Gail
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Personal assets
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$ 262,000
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$ 312,000
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$ 362,000
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Personal liabilities
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(236,000)
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(234,000)
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(339,100)
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Personal net worth
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$ 26,000
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$ 78,000
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$ 22,900
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• Carlos, Dan, and Gail share profits and losses in the ratio 20:40:40.
• CDG sold all noncash assets on December 10, 20X6, for $270,500.
Task
A. Make a statement of realization and liquidation for the CDG Partnership on December 10, 20X6.
B. Make a schedule of the net worth of each of the three partners as of December 10, 20X6, after the partnership liquidation is completed assuming that no other events occurred in the 10-day period that changed any of the partners' personal assets and personal liabilities.