CHAPTER 15
Problem 11-10A Liquidation of a partnership LOS
CHECK FIGURES: a. Dr. Craig, Capital: $549,000 b. Dr. Craig, Capital: $114,000
Trish Craig and Ted Smith have a bioenergy and consulting business and share profit and losses in a 3:1
ratio. They decide to liquidate their partnership on December 31, 2023, when the balance sheet shows the
following:
Craig and Smith Consulting
Balance Sheet
December 31, 2025
Assets
Liabilities
Cash
$ 91,200
Property, plant, and equipment.
Accounts payable.
$ 50.400
5513,600
Equity
Less Accumulated depreciation.
199.200
314,400
Trish Craig capital
5244,800
Total assets.
5401,600
Ted Smith, capital.
110,400
Total equity.
355.200
Total labilities and equity.
5405,500
Required Prepare the entries on December 31, 2023, to record the liquidation under each of the follow
ing independent assumptions:
a. Property, plant, and equipment are sold for $720,000.
b. Property, plant, and equipment are sold for $140,000.