Following the liquidation of all noncash assets, the partnership of Redmond, Led
ID: 2351432 • Letter: F
Question
Following the liquidation of all noncash assets, the partnership of Redmond, Ledbetter, Watson, and Sandridge has the following account balances:Liabilities $ 39,000
Redmond, loan 16,000
Redmond, capital (20%) (43,000)
Ledbetter, capital (10%) (41,000)
Watson, capital (30%) 7,000
Sandridge, capital (40%) 26,000
Redmond is personally insolvent. (Leave no cells blank - be certain to enter "0" wherever required. Negative amounts and amounts to be deducted should be indicated with a minus sign.)
Redmond,
Loan and
Capital Ledbetter,
Capital Watson,
Capital Sandridge,
Capital
Beginning balances $ $ $ $
Allocation of Redmond's deficit balance
Capital balances $ $ $ $
Contribution by Ledbetter and Watson
Final distribution $ $ $ $
Explanation / Answer
capital Redmond,=43,000)
capital Ledbetter, = (41,000)
capital Watson, = 7,000
capital Sandridge,=26,000
Beginning balances $ $ $ $=16,000+43000+41000+7000+26000=133000
Capital balances $ $ $ $
Contribution by Ledbetter and Watson =41,000+7,000=48000