Problem 2: JFK partnership engaged in steel manufacturing business had the followingcondensed financial position prior to liquidation:ASSETSLIABILITIES AND CAPITALCashP24,000LiabilitiesP70,000Noncash assetsLoan payable to JJ, Capital (50%)F, Capital (30%)K, Capital (20%)Total360,00030,00090,000140,00054,000TotalP384,000P384,000Assuming assets with a book value of P140,000 were sold for P100,000 and that all available cashwas distributed. For what amount would the remaining assets have to be sold in order for partnerF to receive a total of P158,000 cash after liquidation? Problem 1: SCA Partnership has the following account balances before liquidation:CashP350,000LiabilitiesP1,125,000Noncash assets7,375,000Loan from A50,000S, Capital (40%)C, Capital (40%)A, Capital (20%)Loan to C150,0001,250,000Receivable from s20,0001,900,000Expenses2,230,0001,000,000Revenues4,800,000During June, some noncash assets were sold that resulted to a loss of P46,125. Liquidationexpenses of P175,000 were paid and additional expenses armounting to P90,000 were expected tobe incurred through the following months of liquidation of the partnership. Liabilities to outsidersamounting to P875,000 were paid. What is the book value of the noncash assets which were soldfor C to receive P555,550?

Here in this question, we are require to determine what amounts other assets needs to be sold so…

Answered: Problem 2: JFK partnership engaged in…

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

Cash P0Non-Cash assets 85,000Total Assets P 85,000Liabilities 25,000Loan payable to Partner F 11,000Loan payable to Partner G 16,000F, Capital (60% in P/L) 21,000G, Capital (40% in P/L) 12,000Total Liabilities and Equity P 85,000 Case # 1: Lump-sum liquidationAll the non-cash assets are sold for P53,000. Case # 2: Installment LiquidationThe non-cash assets are sold in installments. Settlement of partners' claims shall be made in installments ascash becomes available. In the first sale, three-fourths (3/4) of the non-cash assets are sold for P46,000. Case # 3: Installment LiquidationThe non-cash assets are sold in installments. Settlement of partners' claims shall be made in installments ascash becomes available. In the first sale, 90% of the non-cash assets are sold for P60,000. 1. Under Case # 1: how much is the amount distributable to F?a. P13,800b. P12,800c. P14,800d. P15,8002. Under Case # 1: how much is the amount distributable to G?a. P16,200b. P13,200c. P15,200d. P15,8003. Under…
SCA Partnership has the following account balances before liquidation: Cash P350,000 Liabilities P1,125,000 Noncash assets 7,375,000 Loan from A 50,000 S, Capital (40%) C, Capital (40%) A, Capital (20%) Loan to C 150,000 1,250,000 Receivable from s 20,000 1,900,000 Expenses 2,230,000 1,000,000 Revenues 4,800,000 During June, some noncash assets were sold that resulted to a loss of P46,125. Liquidation expenses of P175,000 were paid and additional expenses armounting to P90,000 were expected to be incurred through the following months of liquidation of the partnership. Liabilities to outsiders amounting to P875,000 were paid. What is the book value of the noncash assets which were sold for C to receive P555,550?
Problem2. A, B, C Partnership began the process of liquidation with the following balance sheet: Assets Liabilities and Capital Cash P 16,000 Liabilities P 150,000 Non-cash assets A, Capital (30%) B, Capital (20%) C, Capital (50%) 434,000 80,000 90,000 130,000 Total P 450,000 P 450,000 Liquidation expenses are expected to be P12,000. After the liquidation expenses of P12,000 had been paid and the non-cash assets are sold, C had a deficit of P8,000. For what amount were the non-cash assets sold?
pie 6TT UOI: Use the following account balance information for Granobfin Partnership with income ratios of 2:4:4 for Granger, Noble, and Finn, respectively. Assets Liabilities and Owner's Equity Cash $ 56300 Accounts payable $ 126100 Accounts Granger, Capital $138600 receivable 131500 Noble, Capital 48300 Inventory 437400 Finn, Capital 312200 $625200 $625200 Assume that, as part of liquidation proceedings, Granobfin sells its noncash assets for $509900. The amount of cash that would ultimately be distributed to Finn would be $288600. $312200. $512600. $203960.
The partners of Grafton Company have decided to liquidate their business. Noncash assets were sold for $115,000. The income ratios of the partners Kale D., Croix D., and Marais K. are 2:3:3, respectively. Complete the following schedule of cash payments for Grafton Company. DO IT! 3a: Partnership Liquidation No Capital Deficiency (Solution) Gafton Company Schedule of Cash Payments \table [[Item, Cash,+, \table[[Noncash], [Assets]],, Liabilities,, \table [[
Problem 4: The balance sheet of the partnership of ABCD Co just before liquidation is presented below: A, loan 5,000 27,500 A, capital (40%) B. capital (30%) HA 25,750 34,250 22,500 C, capital (20%) D, capital (10%) Certain assets are sold for P30,000 and this is distributed to the partners. How much cash should C receive?
Ideu, the d. P3,200 b. Р3,920 C. P4,500 d. P17,800 42. liquidate. All assets of the partnership just prior to liquidation follows: were liquidated. The condemsed statement of financial position Assets Cash Other assets liabilities and capital P140, 000 10, 000 45, 000 105, 000 200, 000 P500,000 P100, 000 liabilities Matias, loan Matias, capital Pagayanon, capital Pescasiosa, capital Total 400, 000 Total P500, 000 Other assets were sold for P247, 500 realizing a loss of P152, 500. Parties agreed to fully terminate the partnership's business thus, necessitating distribution of cash to partners and in case of capital deficiency, contribution of additional cash. The three partners were all solvent and could answer any capital deficiency. Name the partner and give the corresponding additional cash he had to invest due to his net capital deficiency to finally settle to the liquidation of the partnership. Pagayanon, P44,000 b Pescasiosa, P30, 500 Matias, P16,000 Matias, P6,000 a C
PROBLEM G: On December 31, 2019, the statement of financial position of BRY Partnership shows the following data with profit or loss sharing ratio of 2:3:5: Cash P1,500,000 Liabilities to outside creditors В, Сарital R, Capital Y, Capital P2,000,000 1,500,000 1,250,000 750,000 Non-cash asset 4,000,000 On January 1, 2020, the partners decided to wind up the partnership affairs. During January, non-cash assets with book value of P3,000,000 were sold for P2,000,000 and liquidation expenses amounting to P200,000 were paid. 40% of total liabilities were also paid during January. P300,000 cash was withheld during January for future liquidation expenses. 8. What is the amount received by partner R on January 31, 2020? A. 200,000 B. 380,000 C. 500,000 D. 890,000
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
. The XYZ partnership has the following balance sheet: Basis FMV Land $60,000 $81,000 Inventory $27,000 $54,000 Unrealized Rec. $ 0 $15,000 Liabilities $30,000 $30,000 Capital, X $21,000 $40,000 Capital, Y $18,000 $40,000 Capital, Z $18,000 $40,000 $87,000 $150,000 If X sells her partnership interest to W for $40,000 cash ($10,000 this year and $30,000 next year), what is her gain or loss each year, and what is its character? (Assume each partner has a 1/3 share of liabilities.)
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
1. The balance sheet of the RJ, SJ and TJ partnership, just before liquidation, is as follows: Assets P120,000 Liabilities 50,000 10,000 RJ, loan RJ, capital SJ, capital TJ, capital Total 22,000 30,000 8,000 P120,000 RJ, SJ and TJ share profits 5:3:2 respectively. Certain assets are sold for P80,000. Creditors are paid in full, partners are paid P20,000, and cash withheld for future expenses P10,000. How much cash is to be distributed to the partners? RJ SJ TJ P13,000 P14,250 a. P7,000 b. P5,750 с. Р5,250 d. P7,550 PO PO P14,750 P12,450 PO PO е. None of the above

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS