Question Completion:
Condensed Balance Sheet:
Cash                    $115,000
Other assets              760,000
Total assets             $875,000
Accounts payable        $232,000
Ferris, loan                43,000 Â
Hardwick, capital          270,000
Saunders, capital          170,000
Ferris, capital             160,000
Total liabilities and capital $875,000
Answer:
The Partnership of Hardwick, Saunders, and Ferris
Proposed Schedule of Liquidation:
Net proceeds from sale of assets      $526,000
Share of net proceeds:
Hardwick   4/10 * $526,000 $210,400
Saunders  3/10 * $526,000  $157,800
Ferris     3/10 * $526,000  $157,800 $526,000
Explanation:
a) Data and Calculations:
Condensed Balance Sheet: Â Â Â Â Â Â Â Â
Cash                    $115,000  Â
Other assets              760,000
Total assets             $875,000
Accounts payable        $232,000
Ferris, loan                43,000 Â
Hardwick, capital          270,000
Saunders, capital          170,000
Ferris, capital             160,000
Total liabilities and capital $875,000
Schedule of Assets Disposal:
Cash                             $115,000  Â
Other assets:
40% of $760,000 ($304,000) sold for  230,000
60% of $760,000 ($456,000) sold for  456,000
Proceeds from disposal, including cash 801,000
Settlement of Accounts Payable      -232,000
Settlement of Ferris, loan             -43,000
Net proceeds                      526,000
                 Hardwick  Saunders    Ferris
Capital accounts    $270,000  $170,000  $160,000
Final settlement      210,400   157,800    157,800
