Solution E16-76

Evers, Freda, and Grace Partnership

Safe Payment Schedule

Partner equities
Loss on sale of assets
(130,000)
Possible lossesa
(210,000)
Allocate Evers' loss

.4 Evers

.4 Freda

.2 Grace

Total

$100,000
(52,000)

$250,000
(52,000)

$170,000
(26,000)

$520,000

48,000
(84,000)

198,000
(84,000)

144,000
(42,000)

390,000

(36,000)
36,000

114,000
(24,000)

102,000
(12,000)

180,000

$ 90,000

$ 90,000

$180,000

Remaining noncash assets of $200,000 plus contingency fund of $10,000 equals

$210,000 possible losses.
Cash to distribute:
Beginning cash balance of $100,000 plus $170,000 from
sale of assets less $10,000 contingency fund equals $260,000.
Distribution of cash:

Accounts payable
Freda
Grace

$ 80,000
90,000
90,000
$260,000

Solution E16-87
Jerry, Joan, and Jill Partnership
Statement of Partnership Liquidation
at November 30, 2008

Balances Nov. 30

Cash

Noncash
Assets

Priority
Claims

40%
Jerry
Capital

Loan
from
Joan

50%
Joan
Capital

10%
Jill
Capital

$8,000

$27,000

$4,000

$10,800

$4,000

$13,200

$3,000

Offset receivable
from Jerry

(3,000)

(3,000)

Write-off patent

(8,000)

(3,200)

Balances after
adjustments
Cash distribution:
Creditors
Partners
Balances

8,000

16,000

(4,000)
(4,000)
0

4,000

4,600

(4,000)
4,000

9,200

(800)
2,200

(4,000)
(3,700)
$16,000

$ 4,600

300

(300)
$ 9,200

$1,900

(This solution assumes that Joan agrees to a distribution of amounts that can
be distributed safely. If she does not agree, no distribution can be made to
either Joan or Jill.)

Jerry, Joan, and Jill Partnership

Safe Payments Schedule at November 30, 2008

Partners' equities
Possible inventory losses
Allocate Jerry's deficit
Safe payments to partners

Possible
Losses

40%
Jerry
Equity

50%
Joan
Equity

10%
Jill
Equity

$16,000

$ 4,600
(6,400)

$13,200
(8,000)

$2,200
(1,600)

(1,800)
1,800

5,200
(1,500)

600
(300)

$ 3,700

300