bided to liquidato On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership. The of ABC following information was made available: 80,000 Cash 240,000 480,000 Accounts receivable Inventory Equipment Total Accounts payable A, Capital (20%) B, Capital (30%) C, Capital (50%) Total SITY☆/ Personal assets Personal liabilities 1,200,000 2,000,000 600,000 200,000 400,000 800,000 2,000,000 The net proceeds from the sale of non-cash assets amounted to P260,000. The personal assets and personal liabilities of the partners are as follows: ДА A с B 1,200,000 1,040,000 800,000 (880,000) (880,000) (1,280,000) How much additional contributions shall be made by the partners in order to settle all of the partnership liabilities?

bided to liquidato On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership. The of ABC following information was made available: 80,000 Cash 240,000 480,000 Accounts receivable Inventory Equipment Total Accounts payable A, Capital (20%) B, Capital (30%) C, Capital (50%) Total SITY☆/ Personal assets Personal liabilities 1,200,000 2,000,000 600,000 200,000 400,000 800,000 2,000,000 The net proceeds from the sale of non-cash assets amounted to P260,000. The personal assets and personal liabilities of the partners are as follows: ДА A с B 1,200,000 1,040,000 800,000 (880,000) (880,000) (1,280,000) How much additional contributions shall be made by the partners in order to settle all of the partnership liabilities?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership. 80,000 240,000 480,000 1,200,000 2,000,000 Cash Accounts receivable Inventory Equipment Total Accounts payable to B Payable A, Capital (20%) B, Capital (30%) C, Capital (50%) 800,000 Total 2,000,000 Information on the conversion of non-cash assets is as follows: 120,000 80,000 400,000 600,000 • $40,000 was collected on accounts receivable; the balance is uncollectible. $20,000 was received for the entire inventory. . The equipment was sold for $200,000./ $8,000 liquidation expenses were paid. • • #108,000 was paid to outside creditors, after offset of a 12,000 credit, memorandum received on January 2, 20x1. All of the partners are personally solvent. How much did B receive from the settlement of his interest in the partnership?
The partnership of H, M and R is liquidating and the ledger shows the following:Dr. Cash- P80,000Dr. Inventories- P100,000Cr. Accounts payable- P60,000Cr. H, Capital (50%)- P45,000Cr. M, Capital (25%)- P40,000Cr. R, Capital (25%)- P35,000If all cash available is distributed immediately: a. M should get P15,000 and R should get P5,000 b. M should get P12,500, and R should get P7,500 c. each partner should get P6,667 each d. each partner should get P26,667 each
16. On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership on installment basis. Distributions to partners shall be made as cash becomes available. The following information was made available: Dr. 40,000 120,000 Cr. . Cash Accounts receivable Receivable from c 20,000 240,000 600,000 Inventory Equipment Accounts payable Payable to B A, Capital (20%) A, Drawing B, Capital (30%) C, Capital (50%) C, Drawings Totals 60,000 40,000 200,000 40,000 300,000 400,000 60,000 1,060,000 1,060,000 During January, non-cash assets with carrying amount of P260,000 was sold for P120,000. Disposal costs amounted to P40,000. All of the partners are personally insolvent. How much did B receive on the cash distribution to the partners? a. 60,000 b. 74,000 c. 76,000 d. 0
On January 1, 20x1, the partners in ABC Co. decided to admit other investors and convert the partnership into a corporation. Relevant information follows: Carrying amounts Fair values Cash 80,000 80,000 Receivables 240,000 160,000 320,000 Inventory Equipment Payables A, Capital (20%) B, Capital (30%) C, Capital (50%) 280,000 2,160,000 2,680,000 200,000 200,000 600,000 N/A 800,000 N/A 1,200,000 N/A The corporation has an authorized capitalization of P8,000,000 divided into 200,000 ordinary shares with par value of P40 per share. Assume that the adjusted capital balances of the partners are used in determining the number of shares to be issued to each partner. What is the aggregate par value of the total shares issued to the partners?
The partnership of H, M and R is liquidating and the ledger shows the following:Dr. Cash- P80,000Dr. Inventories- P100,000Cr. Accounts payable- P60,000Cr. H, Capital (50%)- P45,000Cr. M, Capital (25%)- P40,000Cr. R, Capital (25%)- P35,000If all cash available is distributed immediately: Choices: • M should get P12,500, and R should get P7,500 • each partner should get P26,667 each • each partner should get P6,667 each • M should get P15,000 and R should get P5,000
On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership. The following information was made available: Cash Accounts receivable Inventory Equipment Total 80,000 Accounts payable 120,000 240,000 Payable to B 480,000 A, Capital (20%) 1,200,000 B, Capital (30%) 2,000,000 C, Capital (50%) 80,000 400,000 600,000 800,000 Information on the conversion of non-cash assets is as follows: • P200,000 was collected on accounts receivable; the balance is uncollectible. P280,000 was received for the entire inventory. The equipment was sold for P1,000,000. P8,000 liquidation expenses were paid. How much did C receive from the settlement of his interest in the partnership?
JCA Partnership is entering into liquidation and you are given the following account balances: Cash 1,100,000 775,000 6,750,000 Liabilities Loan from A Noncash asset 150,000 J, capital (20%) 1,275,000 C, capital (20%) 1,625,000 3.375,000 A, capital (60%) Total liab, and capital Total Asset 7.525.000 7.525.000 During June, noncash asset with a book value of P1,875,000 were sold for P1,600,000. JCA paid P175,000 for the liquidation expenses it incurred and it also paid its liabilities to outsider creditors. However, creditors whose account balances amount to P150,000 decided to condone JCA's liabilities. % of the cash received from the sale of noncash assets were distributed to the partners. What is A's interest after the first cash distribution?
Before liquidation, the following is the financial position of the partnership W, X, Y and Z: W, capital 275,000 W, loan 50,000 X, capital 225,000 Y, capital 257,500 Z, capital 342,500 P&L ratio is 4:3:2:1, respectively. 300,000 was received from certain assets are sold and are distributed to partners. What cash amount should Z receive? a. 300,000 b. 0 c. 135,834 d. 166,166
Prior to liquidation, the capitals are reported with the following balances: Partners Capitals P/L Ratio Alaska P160,000 1/3 Bilasa 290,000 2/3 The total liabilities of the partnership amount to P150,000, and all assets available are noncash assets were realized at P540,000. The cash distribution to Alaska and Bilasa respectively would be A. P130,000 P260,000 B. P190,000 P350,000 C. P135,000 P270,000 D. P140,000 P250,000 As of December 31, 2022, the books of AME Partnership showed capital balances of A, P40,000; M, P25,000; E P50,000. The partner’s profit and loss ratio was 3:2:1, respectively. The partners decided to liquidate and they sold all non-cash assets for P37,000. After settlement of all liabilities amounting to P12,000, they still have cash of P28,000 left for distribution. Assuming that any capital debit balance is uncollectible, the share of A in distribution of the P28,000 cash would be: A. P18,000 B. P0…
35. The statement of financial position for the partnership of BBB, CCC and DDD who share profits in the ratio of 2:1:1, shows the following balances just before the liquidation: Cash P12,000Other assets 59,500Liabilities 49,000BBB, capital 22,000CCC, capital 15,500DDD, capital (15,000) On the first installment of the liquidation, a gain of P8,525 was realized from the sale of certain assets. Liquidation expenses of P1,000 was paid, and additional liquidation expenses are anticipated. Liabilities paid amounted to P34,400. Remaining book value of other assets is P1,550. On the first payment to partners, CCC receives P6,250. The amount of cash withheld for anticipated liquidation expenses and unpaid liabilities is: a. 11,475b. 14,600c. 26,075d. 29,200
AAA, BBB, CCC, and DDD are partners sharing profits in the ratio of 3/21, 4/21, 6/21, and 8/21. Their capital balances on December 31, 2030 are as follows:AAA P 500BBB 12,500CCC 12,500DDD 4,500The partners decide to liquidate their firm and they accordingly convert the noncash assets into P11,600 cash. After paying liabilities of P1,500, they have P11,100 to divide. How much was the distribution to partner CCC?a. P0 b. P3,560 c. P4,160 d.P7,100
5. On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership. The following information was made available: Cash Accounts Receivable Inventory Furniture & fixtures, net Total Accounts Payable A, Capital (70%) B, Capital (30%) Total 30,000 380,000 260,000 120,000 790,000 165,000 350,000 175,000 790,000 C offered to buy for $760,000 the partnership assets including liabilities but excluding cash and after certain assets are to be restated to their fair values as follows: Accounts receivable, P350,000 Inventory, P250,000 Furniture, P135,000 How much will A and B receive as the final settlement of their partnership interests?