Prior to the distribution of cash to the partners, the accounts in the Carla Vista Company are Cash $ 30,400; Vogel, Capital (Cr.) $ 20,200; Utech, Capital (Cr.) $ 18,200; and Pena, Capital (Dr.) $ 8,000. The income ratios are 5:3:2, respectively. Carla Vista Company decides to liquidate the company.
Q: The balance sheet of Marilyn and Monroe was as follows immediately prior to the partnership being…
A: Loss on sale of other assets = $160,000 - $139,000 = $21,000 Marilyn = $21,000 x 2/3 = $14,000…
Q: The condensed balance sheet and profit and loss ratios of the partnership of Bean, Dean,and Jean are…
A: LIABILITY AMOUNT ASSETS AMOUNT Liabilities 2,625,000 Cash 1,125,000 Payable to…
Q: The partners of Sandhill Company have decided to liquidate their business. Noncash assets were sold…
A: Partnership: This is the form of business entity which is formed by an agreement, owned and managed…
Q: Following is a series of independent cases. In each situation, indicate the cash distribution to be…
A: Part A:
Q: A balance sheet for the partnership of Sanjoe, Bea, and Piolo, who share profits and losses in the…
A: Cash From sale of Assets = 1,92,000 Less: Liquidation Expenses = ( 6000) Less:…
Q: Apple, Blandy, Cherry, and Debbie are partners sharing profits and losses in the ratio of 40%, 30%,…
A: Partnership is the association of two or more persons who have agreed to share profit and losses in…
Q: On January 1 , FRED and GEMMO formed a partnership by contributing cash of P300,000 and P360,000 ,…
A: A partnership is an agreement between two or more partners where partners are agreed to work…
Q: Talent, a local HR consulting firm, has total partners’ equity of $764,000, which is made up of…
A: A partnership is a kind of business structure in which two or more people agree to carry out…
Q: y a cash contribution by the deficient partner. Complete the liquidation chart below. Statement…
A: The statement of partnership liquidation is a visual representation of the partnership liquidation,…
Q: ABC Corporation currently has $20,000 in cash, $30,000 in noncash assets, and liabilities of…
A: Liquidation can be simply interpreted as a process of bringing the business to an end and…
Q: After all noncash assets have been converted to cash in the liquidation of MM Partnership, the…
A: Mae, capital having debit balance of P8,000 which is called as deficit balance. Mae also given a…
Q: Mar, Tee, Nee, and Kho, sharing profits in the ratio of 3/21, 4/21, 6/21, and 8/21, respectively,…
A: The carrying value of the non-cash assets would be determined by the difference between total…
Q: Talent, a local HR consulting firm, has total partners’ equity of $798,000, which is made up of…
A: Hall capital+ Reynolds capital+ Morris capital = total capital let the total capital be X…
Q: Hanson, James, and Smith, a partnership, is in the process of liquidating. The partners have the…
A: Introduction: A partnership is a type of business in which two or more people enter into a legal…
Q: Orian, Tejero, and Lacson are partners in the OTL Electric Company and share profits in ratio of…
A: Given Information: Profit sharing ratio = 5:3:2 Non-cash assets sold for = P95,000
Q: Orian, Tejero, and Lacson are partners in the OTL Electric Company and share profits in ratio of…
A: Statement of liquidation presents the manner in which, assets are realized, liabilities are settled,…
Q: The balance sheet of Morgan and Rockwell was as follows immediately prior to the partnership's…
A: Liquidation is an event which occurs when the business becomes insolvent and the business is not…
Q: At April 30, partners’ capital balances in Crane Company are G. Donley $ 54,080, C. Lamar $ 49,920,…
A: Journal entries are the primary reporting of the transactions taking place in the usual course of…
Q: The following condensed balance sheet is for the partnership of Miller, Tyson, and Watson, who share…
A: Working: Miller capital = 75,000*10 /6 = $125,000 Tyson capital = 75,000 * 10 /2 = $375,000 Watson…
Q: After all noncash assets have been converted to cash in the liquidation of MM Partnership, the…
A: A partnership is a very effective form of a business organization. It is an association or agreement…
Q: After closing the books of the partnership of Mutya and Associates, Lakambini announced his…
A:
Q: Talent, a local HR consulting firm, has total partners’ equity of $794,000, which is made up of…
A: For (a): Existing capital = 617000+177000 = 794000 If Morris invests 198500, new capital =…
Q: On January 1, 20x4, the dental partnership of LL, CC and RR was formed when the partners contributed…
A: Interest allocation to LL = Contribution x interest rate = 20000 x 12% = P2400 Interest allocation…
Q: Barney, Betty, and Rubble are partners in a business that is in the process of liquidation. On…
A: Partnership:-It is a form of business where two or more people join together to share profit and…
Q: Partners E, F, and G who share profits and losses in the ratio of 2: 2: 1, respectively decided to…
A: 12. Loss on realization
Q: When Conde and Dalmacio, partners who share earnings equally, were incapacitated in an airplane…
A: Safe Cash Distribution Method means the distribution of cash according to the current value but not…
Q: Blossom Company at December 31 has cash $ 23,800, noncash assets $ 106,000, liabilities $ 51,600,…
A: Liquidation means where the company decide to close out the operations , sell all the assets and…
Q: Garachico, Dugan, Pascua and Cerda are partners, sharing profits in the ratio of 3/21, 4/21, 6/21…
A: Realization account is prepared at the time of liquidation of the Company and the profit/loss should…
Q: Lewis, Zapata, and Fowler share equally in net income and net losses. After the partnership sells…
A: The amount of cash on hand = $73,500 + $41,000 – $17,000 = $97,500
Q: The partners of Blossom Company have decided to liquidate their business. Noncash assets were sold…
A: Partnership: This is the form of business entity that is formed by an agreement, owned and managed…
Q: William and Ardi's capital balances are $12.000 and $8,000, respectively. The partnership firm owes…
A: Total Capital=W's Capital+A's Capital=$12,000+$8,000=$20,000
Q: The balance sheet of Joy, Berry, Jaz as of December 31, 2010 and the profit and loss sharing ratio…
A: Berry's capital = 170000000 Profit sharing ratio 30:30:40
Q: As of Dec 31, 2011, the books of V. G and C partnership showed capital balances of V, 40,000; G.…
A: Since, you have specifically asked for question 20, so, we will solve the same for you.
Q: The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its…
A: A partnership is an agreement in which two or more individuals come together to operate a business…
Q: Carney, Pierce, Menton, and Hoehn are partners who share profits and losses on a 4:3:2:1 basis,…
A: At the time of liquidation partners will be paid according to capital balance of the partner. The…
Q: ) 168,000 Wilson, capital (20%) 45,000 Clarke, capital (20%) 95,000 Total…
A: The entries are given as,
Q: Ana, Bea, and Cara are partners sharing profits and losses in the ratio of 1:1:2, respectively. They…
A: Partnership is a way of conducting business where one or more individuals come together in order to…
Q: On January 1, the partners of Van, Bakel, and Cox (who share profits and losses in the ratio of…
A: The question is based on the concept of accounting for partnership.
Q: Partners E, F, and G who share profits and losses in the ratio of 2: 2: 1, respectively decided to…
A: Partners E, F and G are partner sharing ratio = 2 : 2 : 1 respectively. They decided to liquidate.…
Q: The CPA Partnership operated by Cook, Parks, and Argo is being liquidated. A balance sheet prepared…
A: A partnership is a type of business where two or more persons come together to commence a business…
Q: If P850,000 of cash was distributed by the partnership, compute for the following: 1. Problem 3 -…
A: Partnership means a group of persons who come together with a purpose to control and manage the…
Q: Carney, Pierce, Menton, and Hoehn are partners who share profits and losses on a 4:3:2:1 basis,…
A: Liquidation of business mean closing down the business , selling all assets , making payment to all…
Q: The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its…
A: A partnership is a kind of business structure in which two or more people agree to carry out…
Q: ABC Corporation currently has $20,000 in cash, $30,000 in noncash assets, and liabilities of…
A: Liquidation can be simply interpreted as a process of bringing the business into its end and…
Q: The balance sheet of Morgan and Rockwell was as follows immediately prior to the partnership's…
A: Introduction: Partnership: Its an agreement between two or more partners for forming a business and…
Q: Prior to the distribution of cash to the partners, the accounts in the Blossom Company are Cash…
A: This is an event that usually occurs when a company goes bankrupt, meaning it cannot pay its…
Q: ABC Corporation currently has $7,000 in cash, $15,000 in noncash assets, and liabilities of $8,000.…
A: Partnership is a form of business where formal business arrangements are made to manage, run and…
Q: The following condensed balance sheet is for the partnership of Miller, Tyson, and Watson, who share…
A:
Q: Carney, Pierce, Menton, and Hoehn are partners who share profits and losses on a 4:3:2:1 basis,…
A: Given information is: Carney, Pierce, Menton, and Hoehn are partners who share profits and losses on…
Q: The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its…
A:
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- 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.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)Prior to the distribution of cash to the partners, the accounts in the Oriole Company are Cash $ 34,000; Vogel, Capital (Cr.) $ 22,0003; Utech, Capital (Cr.) $ 20,000; and Pena, Capital (Dr.) $ 8,000. The income ratios are 5:3:2, respectively. Oriole Company decides to liquidate the company. (a) Prepare the entry to record (1) Pena's payment of $ 8,000 in cash to the partnership and (2) the distribution of cash to the partners with credit balances. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit (1) (2)
- After liquidating noncash assets and paying creditors, account balances in the Oriole Co. are Cash $17,800: A Capital (Cr.) $7.600; B. Capital (Cr.) $6.600; and C, Capital (Cr.) $3,600. 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 CreditSandhill 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.) $48,000; Quaney, Capital (Dr.) $21,420; and Ellis, Capital (Cr.) $39,220. 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 (To record write-off of capital deficiency) (To record distribution of cash to the partners) Debit Credit DO NOTAfter all noncash assets have been converted to cash in the liquidation of MM Partnership, the ledger contains the following account balances: Debit balances: Cash: P 34, 000; Mae, Capital: P 8, 000; Credit balances: A/P: P 25, 000; Mae, Loan: P 9, 000; Mila, Capital: P 8, 000. After paying the A/P of P25, 000, available cash should be distributed to
- A. After all the non-cash assets have been converted into cash in the liquidation of Sun and Star Partnership, the ledger contains the following account balances: Cash - P141,000; Accounts Payable - P 96,000; Sun, Loan - P 45,000; Sun, Capital -(P21,000); Star, Capital - P21,000. How much is the final settlement to Sun assuming cash of P 96,000 is paid to Accounts Payable? B. Using data above, how much is the final settlement to Star? *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(c) On December 31, the capital balances and income ratios in Bismillah Company are as follows. Capital Balance Tk. 100,000 80,000 50,000 Income Ratio 50% 30% 20% Partner Abu Bakar Umar Usman Instructions (1) Journalize the withdrawal of Usman under each of the following assumptions. (i) Each of the continuing partners agrees to pay Tk. 30,000 in cash from personal funds to purchase Usman's ownership equity. Each receives 50% of Usman's equity. (ii) Umar agrees to purchase Usman's ownership interest for Tk. 35,000 cash. (iii) Usman is paid Tk. 60,000 from partnership assets, which includes a bonus to the retiring partner. (iv) Usman is paid Tk. 42,000 from partnership assets, and bonuses to the remaining partners are recognized.
- After all the non-cash assets have been converted into cash in the liquidation of Sun and Star Partnership, the ledger contains the following account balances: Cash - P141,000; Accounts Payable - P 96,000; Sun, Loan - P 45,000; Sun, Capital -(P21,000); Star, Capital - P21,000. How much is the final settlement to Sun assuming cash of P 96,000 is paid to Accounts Payable? how much is the final settlement to Star?The Pen, Evan, and Torves Partnership has asked you to assist in winding-up its business affairs. You compile the following information: 1. The partnership's trial balance on June 30, 20X1, Is Cash Accounts Receivable (net) Inventory Plant and Equipment (net) Accounts Payable Pen, Capital Evan, Capital Torves, Capital Total Profit and loss percentages Preliquidation capital balances Loss absorption potential (capital balances / loss percent) Decrease highest LAP to next highest: Debit $ 6,800 30,000 22,000 99,700 Decrease LAPS to next highest: $ 158,500 2. The partners share profits and losses as follows: Pen, 50 percent; Evan, 30 percent; and Torves, 20 percent. 3. The partners are considering an offer of $108,000 for the firm's accounts receivable, Inventory, and plant and equipment as of June 30. The $108,000 will be paid to creditors and the partners in Installments, the number and amounts of which are to be negotiated. Required: Prepare a cash distribution plan as of June 30,…The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: Cash Noncash assets Req A1 a-1. Determine the maximum loss that can be absorbed in Step 1. Then, assuming that this loss has been incurred, determine the next maximum loss that can be absorbed in Step 2. a-2. Liquidation expenses are estimated to be $19,000. Prepare a predistribution schedule to guide the distribution of cash. Further, modify the tags in explanation as well. b. Assume that assets costing $78,000 are sold for $62,000. How is the available cash to be divided? Complete this question by entering your answers in the tabs below. Step 1 $ 40,000 224,000 Partner Capital Balance Drysdale Koufax Marichal Determine the maximum loss that can be absorbed in Step 1. Then, assuming that this loss has been incurred, determine the next maximum loss that can be absorbed in Step 2. Step 2 Liabilities Drysdale, loan Drysdale, capital (50%) Koufax, capital (30%) Marichal,…