Crane Company wishes to liquidate the firm by distributing the company's cash to the three partners. Prior to the distribution of cash, the company's balances are Cash $62,200; Oakley, Capital (Cr.) $48,300; Quaney, Capital (Dr.) $14,070; and Ellis, Capital (Cr.) $27,970. The income ratios of the three partners are 3:3:4, respectively. Prepare the entry to record the absorption of Quaney's capital deficiency by the other partners and the distribution of cash to the partners with credit balances. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Oakley, Capital Ellis, Capital Quaney, Capital (To record write-off of capital deficiency) Oakley, Capital Ellis, Capital Cash (To record distribution of cash to the partners) Debit Credit 000

Crane Company wishes to liquidate the firm by distributing the company's cash to the three partners. Prior to the distribution of cash, the company's balances are Cash $62,200; Oakley, Capital (Cr.) $48,300; Quaney, Capital (Dr.) $14,070; and Ellis, Capital (Cr.) $27,970. The income ratios of the three partners are 3:3:4, respectively. Prepare the entry to record the absorption of Quaney's capital deficiency by the other partners and the distribution of cash to the partners with credit balances. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Oakley, Capital Ellis, Capital Quaney, Capital (To record write-off of capital deficiency) Oakley, Capital Ellis, Capital Cash (To record distribution of cash to the partners) Debit Credit 000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Wildhorse Company wishes to liquidate the firm by distributing the company's cash to the three partners. Prior to the distribution of cash, the company's balances are Cash $65,800; Oakley, Capital (Cr.) $51,900; Quaney, Capital (Dr.) $17,220; and Ellis, Capital (Cr.) $31,120. The income ratios of the three partners are 2:3:5, respectively. Prepare the entry to record the absorption of Quaney's capital deficiency by the other partners and the distribution of cash to the partners with credit balances. (Credit account titles are automatically Indented when amount Is entered. Do not Indent manually.) Account Titles and Explanation Debit Credit (To record write-off of capital deficiency)
Cullumber Company wishes to liquidate the firm by distributing the company's cash to the three partners. Prior to the distribution of cash, the company's balances are Cash $64,000; Oakley, Capital (Cr.) $48,400; Quaney, Capital (Dr.) $18,480; and Ellis, Capital (Cr.) $34,080. The income ratios of the three partners are 3:4:3, respectively. Prepare the entry to record the absorption of Quaney's capital deficiency by the other partners and the distribution of cash to the partners with credit balances. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Oakley, Capital Ellis, Capital Quaney, Capital (To record write-off of capital deficiency) Oakley, Capital Ellis, Capital Cash (To record distribution of cash to the partners) Debit 14605 19474 33795 14606 Credit AND IN 34079 48401 2
After liquidating noncash assets and paying creditors, account balances in the Sandhill Co. are Cash $17,200; A, Capital (Cr.) $7,700; B, Capital (Cr.) $5,500; and C, Capital (Cr.) $4,000. The partners share income equally. Journalize the final distribution of cash to the partners. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit
Prior to the distribution of cash to the partners, the accounts in the Blossom Company are Cash $32,400; Vogel, Capital (Cr.) $19,200; Utech, Capital (Cr.) $17,200; and Pena, Capital (Dr.) $4,000. The income ratios are 5:3:2, respectively. Blossom Company decides to liquidate the company.
Carney, Pierce, Menton, and Hoehn are partners who share profits and losses on a 4:3:2:1 basis, respectively. They are beginning to liquidate the business. At the start of this process, capital balances are Which of the following statements is true? The first available $2,000 will go to Hoehn. Carney will be the last partner to receive any available cash. The first available $3,000 will go to Menton. Carney will collect a portion of any available cash before Hoehn receives money.
After liquidating noncash assets and paying creditors, account balance in the Pharoah Co. are cash $17,000; A, Capital (Cr.) $8,000; B, Capital (Cr.) $5,300; and C, Capital (Cr.) $3,700. The partners share income equally. Journalize the final distribution of cash to the partners.
The following condensed balance sheet is for the partnership of Miller, Tyson, and Watson, who share profits and losses in the ratio of 6:2:2, respectively: Cash Other assets Total assets $ 49,000 135,000 $ 184,000 a. Assuming no liquidation expenses, calculate the safe payments that can be made to partners at this point in time. b. For how much money must the other assets be sold so that each partner receives some amount of cash in a liquidation? Complete this question by entering your answers in the tabs below. Required A Required B Safe payments Liabilities Miller, capital Tyson, capital Watson, capital Total liabilities and capital Assuming no liquidation expenses, calculate the safe payments that can be made to partners at this point in time. Tyson Miller $ 39,000 63,000 63,000 19,000 $ 184,000 Watson
The balance sheet for the Delphine, Xavier, and Olivier partnership follows: Delphine, Xavier, and Olivier share profits and losses in the ratio of 4:4:2, respectively. The partners have agreed to terminate the business and estimate that $12,000 in liquidation expenses will be incurred. What is the amount of cash that safely can be paid to partners prior to liquidation of noncash assets? How should the safe amount of cash determined in (a) be distributed to the partners?
Capital balances in Grouper Co, are Dene S64,000, Aneta $38,200, and Harriet $25,500. The partners share income equally. Harriet receives $31,400 from partnership assets in withdrawing from the firm. Journalize the withdrawal of Harriet. (Credit account titles are automaticàlly indented when the omount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation Debit Credit
The balance sheet of Maroon and White was as follows immediately prior to the partnership's being liquidated: cash, P20,000; other assets, P160,000; liabilities, P40,000; Maroon capital, P60,000; White capital, P80,000. The other assets were sold for P139,000. Maroon and White share profits and losses in a 2:1 ratio. As a final cash distribution from the liquidation, how much cash will Maroon receive? Prepare a statement of liquidation.
Carney, Pierce, Menton, and Hoehn are partners who share profits and losses on a 4:3:2:1 basis, respectively. They are beginning to liquidate the business. At the start of this process, capital balances are Carney, capital $ 67,000 Pierce, capital 29,100 Menton, capital 50,000 Hoehn, capital 22,100 Which of the following statements is true? Multiple Choice Carney will collect a portion of any available cash before Hoehn receives money. Carney will be the last partner to receive any available cash. The first available $4,100 will go to Hoehn. The first available $5,800 will go to Menton.
AQUA and PLANT with capital balances of P100,000 and P82,000,respectively. They share profits and losses in the ratio of 3:2, respectively. The partners decided to liquidate the partnership. The firm’s liabilities amount to P150,000, including P16,000 owing to DDS and P14,000 to DU. After realization of assets, the cash on hand amounted to P155,000. How much was the loss on realization?