Liquidating Partnerships-Deficiency Prior to liquidating their partnership, Jacobs and Sanchez had capital accounts of $320,000 and $424,000, respectively. The partnership assets were sold for $52,000. The partnership had no liabilities. Jacobs and Sanchez share income and losses equally. Required: Determine the amount of Jacobs's deficiency. Determine the amount distributed to Sanchez, assuming that Jacobs is unable to satisfy the deficiency.
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Liquidating Partnerships-Deficiency
Prior to liquidating their
Required:
- Determine the amount of Jacobs's deficiency.
- Determine the amount distributed to Sanchez, assuming that Jacobs is unable to satisfy the deficiency.
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- Liquidating Partnerships—Deficiency Prior to liquidating their partnership, Short and Reynell had capital accounts of $24,000 and $99,000, respectively. The partnership assets were sold for $47,000. The partnership had no liabilities. Short and Reynell share income and losses equally. Required: a. Determine the amount of Short's deficiency.$fill in the blank 1 b. Determine the amount distributed to Reynell, assuming that Short is unable to satisfy the deficiency.$fill in the blank 2Liquidating Partnerships-Deficiency Prior to liquidating their partnership, Heller and Warren had capital accounts of $128,000 and $67,000, respectively. The partnership assets were sold for $49,000. The partnership had no liabilities. Heller and Warren share income and losses equally. Required: a. Determine the amount of Warren's deficiency. b. Determine the amount distributed to Heller assuming that Warren is unable to satisfy the deficiency.Liquidating Partnerships—Deficiency Prior to liquidating their partnership, Underwood and Bain had capital accounts of $28,000 and $107,000, respectively. The partnership assets were sold for $53,000. The partnership had no liabilities. Underwood and Bain share income and losses equally. a. Determine the amount of Underwood's deficiency.fill in the blank 1 of 1$ b. Determine the amount distributed to Bain, assuming that Underwood is unable to satisfy the deficiency.
- Prior to liquidating their partnership, Greer and Murphy had capital accounts of $70,000 and $30,000, respectively. The partnership assets were sold for $25,000. The partnership had no liabilities. Greer and Murphy share income and losses equally. a. Determine the amount of Murphy’s deficiency. b. Determine the amount distributed to Greer, assuming Murphy is unable to satisfy the deficiency. Liquidatingpartnerships— deficiencyLiquidating Partnerships—Deficiency Prior to liquidating their partnership, Pepper and Bain had capital accounts of $20,000 and $83,000, respectively. The partnership assets were sold for $39,000. The partnership had no liabilities. Pepper and Bain share income and losses equally. Required: a. Determine the amount of Pepper's deficiency.$ b. Determine the amount distributed to Bain, assuming Pepper is unable to satisfy the deficiency.$Prior to liquidating their partnership, Heller and Warren had capital accounts of $128,000 and $67,000, respectively. The partnership assets were sold for $49,000. The partnership had no liabilities. Heller and Warren share income and losses equally. Required: a. Determine the amount of Warren's deficiency. b. Determine the amount distributed to Heller assuming that Warren is unable to satisfy the deficiency.
- Prior to liquidating their partnership, Samuel and Brian had capital accounts of $60,000 and $240,000, respectively .The partnership assets were sold for $120,000. The partnership had no liabilities. Samuel and Brian share income and losses equally.. Required: a. Determine the amount of Samuel's deficiency b. Determine the amount distributed to Brian, assuming Samuel is unable to satisfy the deficiency Show Your Work:.Prior to liquidating their partnership, Bonilla and Perez had capital accounts of $185,000 and $245,000, respectively. The partnership assets were sold for $30,000. The partnership had no liabilities. Bonilla and Perez share income and losses equally.a. Determine the amount of Bonilla’s deficiency.b. Determine the amount distributed to Perez, assuming that Bonilla is unable to satisfy the deficiency.Prior to liquidating their partnership, Samuel and Brian had capital accounts of $60,000 and $240,000, respectively .The partnership assets were sold for $120,000. The partnership had no liabilities. Samuel and Brian share income and losses equally.. Required: Determine the amount of Samuel’s deficiency Determine the amount distributed to Brian, assuming Samuel is unable to satisfy the deficiency Show Your Work:.
- Prior to liquidating their partnership, Wakefield and Barns had capital accounts of $105,000 and $55,000, respectively. The partnership assets were sold for $40,000. The partnership had no liabilities. Wakefield and Barns share income and losses equally.a. Determine the amount of Barns’s deficiency.b. Determine the amount distributed to Wakefield, assuming that Barns is unable to satisfy the deficiency.1. In a partnership liquidation the realization losses result in a debit balance in one partners’ capital account. If this partner fails to contribute personal assets to make up this deficit, how should the debit balance be handled by the partners? a. It should be written off against partnership profits like any other bad debt. b. It should be allocated to all the partners in their profit and loss ratio. c. It should be allocated to the remaining partners in their remaining P and L ratio. d. It should be set up as a receivable and turned over to a collection agency. 2. During liquidation, a partners’ capital account balance drops below zero. What should happen? a. The other partners should file a legal suit against the partner with the deficit balance. b. The partner with the highest capital balance should contribute sufficient assets to eliminate the deficit. c. The deficit balance…1. The division of partnership profits on the basis of salaries, interest, and an agreed ratio is usually necessary because: a. this prevents arguments among the partners b. most investors require this method of distribution c. partners seldom contribute time, effort and resources equally d. this reflects the amount of time the partnership by the partners 2. On July 1, Fernando and Fetalvero formed a partnership, agreeing to share profits and losses in the ratio of 4:6 respectively. Fernando contributed a parcel of land that cost P250,000. Fetalvero contributed cash of P500,000 cash. The land was sold for P500,000 on July 1, three hours after the formation of a partnership. How much should land be recorded in Fernando's capital account upon the formation of the partnership? a. P200,000 b. P500,000 c. P250,000 d. P100,000 3. Lacson and Solis started a partnership. Lacson contributed a building that she purchased 10 years ago for P100,000. The…
