16 Blossom, Jennings, and Blair share profits and losses is 2:3:5, respectively. The balancesheet is:BLOSSOM, JENNINGS, AND BLAIR PARTNERSHIPBalance Sheet31-Dec-20AssetsCash$ 42,000Liabilities and Owners' EquityLiabilitiesNoncash assets275,000140,00059,000Blossom, Capital89,000Jennings, Capital29,000Total317,000Blair, CapitalTotal$317,000If the partnership is liquidated by selling the noncash assets for $365,000, and creditorsare paid in full, what is the total amount of cash that Blossom will receive in thedistribution of cash to partners?$77,000$74,000$18,000$114,000TOD16017 In the liquidation of a partnership, any gain or loss on the realization of noncash assetsshould be allocatedA) to the partners on the basis of their income ratios.B) first to creditors and the remainder to partners.C) only after all creditors have been paid.D) to the partners on the basis of their capital balances.9991nobso ali nio leps18 A liquidation differs from a dissolution is that in a liquidationA) the business will not continue rose esB) assets may be revaluedC) gains and losses are distributed according to the partnershipagreementD) there may be an adjustment of partners' Capital accountsE) None of the above

Partnership means the agreement between the two or more person to do the business together and share…

16 Blossom, Jennings, and Blair share profits and losses is 2:3:5, respectively. The balance sheet is: BLOSSOM, JENNINGS, AND BLAIR PARTNERSHIP Balance Sheet 31-Dec-20 Assets Cash Liabilities and Owners' Equity Liabilities $ 42,000 Noncash assets 140,000 59,000 275,000 Blossom, Capital 89,000 Jennings, Capital 29,000 Total Blair, Capital Total 317,000 $317,000 If the partnership is liquidated by selling the noncash assets for $365,000, and creditors are paid in full, what is the total amount of cash that Blossom will receive in the distribution of cash to partners? $77,000 $74,000 $18,000 $114,000

16 Blossom, Jennings, and Blair share profits and losses is 2:3:5, respectively. The balance sheet is: BLOSSOM, JENNINGS, AND BLAIR PARTNERSHIP Balance Sheet 31-Dec-20 Assets Cash Liabilities and Owners' Equity Liabilities $ 42,000 Noncash assets 140,000 59,000 275,000 Blossom, Capital 89,000 Jennings, Capital 29,000 Total Blair, Capital Total 317,000 $317,000 If the partnership is liquidated by selling the noncash assets for $365,000, and creditors are paid in full, what is the total amount of cash that Blossom will receive in the distribution of cash to partners? $77,000 $74,000 $18,000 $114,000

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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The E.N.D. partnership has the following capital balances as of the end of the current year: $ 280,000 240,000 210,000 190,000 $ 920,000 Pineda Adams Fergie Gomez Total capital Answer each of the following independent questions: a. Assume that the partners share profits and losses 3:3:2:2, respectively. Fergie retires and is paid $262,000 based on the terms of the original partnership agreement. If the goodwill method is used, what is the capital balance of the remaining three partners? b. Assume that the partners share profits and losses 4:3:2:1, respectively. Pineda retires and is paid $305,000 based on the terms of the original partnership agreement. If the bonus method is used, what is the capital balance of the remaining three partners? (Do not round your intermediate calculations. Round your final answers to the nearest dollar amounts.) Capital Balance a. Pineda Adams Gomez b. Adams Fergie Gomez
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A-7
es A partnership has the following capital balances: Artur, Capital Bella, Capital Callo, Capital $ 60,000 30,000 90,000 Profits and losses are split as follows: Artur (20%), Bella (30%), and Callo (50%). Callo wants to leave the partnership and is paid $100,000 from the business based on provisions in the articles of partnership. Required: Assuming the partnership uses the bonus method, compute the balance of Bella's capital account after Callo withdraws. Note: Amounts to be deducted should be indicated with minus sign. Bella's capital balance before withdrawal bonus to Callo Allocation of Callo's bonus Bella's capital balance after Callo's withdrawal