16. On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership on installmer basis. Distributions to partners shall be made as cash becomes available. The following informatic was made available: Dr. 40,000 120,000 20,000 240,000 600,000 Cr. Cash Accounts receivable Receivable from C Inventory Equipment Accounts payable Payable to B A, Capital (20%) A, Drawing B, Capital (30%) C, Capital (50%) 60,000 40,000 200,000 40,000 300,000 400,000

16. On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership on installmer basis. Distributions to partners shall be made as cash becomes available. The following informatic was made available: Dr. 40,000 120,000 20,000 240,000 600,000 Cr. Cash Accounts receivable Receivable from C Inventory Equipment Accounts payable Payable to B A, Capital (20%) A, Drawing B, Capital (30%) C, Capital (50%) 60,000 40,000 200,000 40,000 300,000 400,000

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 financial position of the partnership Marie, Shey, Allan and Roi, just prior to liquidation shows: Marie, Loan 25,000 Marie, Capital 137,500 Shey, capital 128,750 Allan, capital 171,250 Roi, Capital 112,500 The partners share profits and losses on a 4:3:2:1 ratio, respectively. Certain assets are sold for P150,000 and is distributed to partners. How much cash should Allan receive? a. 0 b. 50,000 c. 67,917 d. 82,083
k 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 $ 7,808 34,000 24,808 99,908 Decrease LAPs to next highest: $ 164,908 2. The partners share profits and losses as follows: Pen, 50 percent; Evan, 25 percent; and Torves, 25 percent. 3. The partners are considering an offer of $110,000 for the firm's accounts receivable, inventory, and plant and equipment as of June 30. The $110,000 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, 20X1,…
You were presented the below transactions for the partners' capital accounts: Jasper, Capital Elena, Capital Daisy, Capital Dr. Cr. Dr Cr. Dr. Cr. 1-Mar 46 5,000 429,600 899,300 1-Apr 5,000 8,000 1-Jun 10,000 20,000 1-Aug 10,000 6,000 1-Sep 3,000 1-Oct 5,000 1,000 10,000 1-Dec 4,000 5,000 50,000 The partnership agreement for P/L division includes the following: Jasper and Elena receive an annual salary of P20,000 and P10,000, respectively. • Elena receives a bonus of 3% of net income before taxes but after bonus. Daisy receives a bonus of 2% of net income before taxes but after bonus. All partners are to receive a 10% interest on their average capital balances. • Remainder is divided equally. Rew The company incur 88,415 loss for the current year operation. Prepare an income statement of the partnership with schedule showing distribution of profits.
Prior to liquidation, the capitals are reported with the following balances: Partners Capitals P/L Ratio Alaska P160,000 1/3 Bilasa 290,000 2/3 The total liabilities of the partnership amount to P150,000, and all assets available are noncash assets were realized at P540,000. The cash distribution to Alaska and Bilasa respectively would be A. P130,000 P260,000 B. P190,000 P350,000 C. P135,000 P270,000 D. P140,000 P250,000 As of December 31, 2022, the books of AME Partnership showed capital balances of A, P40,000; M, P25,000; E P50,000. The partner’s profit and loss ratio was 3:2:1, respectively. The partners decided to liquidate and they sold all non-cash assets for P37,000. After settlement of all liabilities amounting to P12,000, they still have cash of P28,000 left for distribution. Assuming that any capital debit balance is uncollectible, the share of A in distribution of the P28,000 cash would be: A. P18,000 B. P0…
On June 1, 20x10, HEAD and ACHE decided to form a partnership contributing their existing businesses. The following is taken form their trial balance: HEAD ACHE Cash 250,000 150,000 Receivables (net) 100,000 80,000 Inventory 125,000 150,000 500,000 400,000 Fixed Assets (net) Liabilities 250,000 250,000 The partners agreed on the following: 1. P50,000 of HEAD'S cash represents converted foreign currencies amounting to FC1,000 on December 31, 20x9. The current spot rate of FC1 is equivalent to P53. 2. The receivables of HEAD and ACHE, currently have a net realizable value of 80% it is agreed that their net realizable value must be adjusted to 75%. 3. HEAD's inventory has a NRV of P140,000 and could be currently sold for P200,000. HEAD's machine was purchased last year with a 5-year life. It's estimated current value is 90% of its cost. 5. ACHE's fixed asset has an 80% condition percentage. If bought brand new, its price would be P550,000. 6. The partners are to share in profits and…
For Crane Co., beginning capital balances on January 1, 2022, are Nancy Payne $21,200 and Ann Dody $17,200. During the year, drawings were Payne $7,000 and Dody $5,900. Net income was $26,500, and the partners share income equally. (a) Prepare the partners' capital statement for the year. (List Items that increase partners' capital first.) (b) : eTextbook and Medial Save for Later $ $ CRANE CO. Partners' Capital Statement N. Payne Prepare the owners' equity section of the balance sheet at December 31, 2022. CRANE CO. Partial Balance Sheet $ $ A. Dody Attempts: 0 of 5 used Total Submit Answer
On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership. The following information was made available: Cash Accounts receivable Inventory Equipment Total Accounts payable A, Capital (20%) B, Capital (30%) C, Capital (50%) Total 80,000 240,000 480,000 1,200,000 2,000,000 600,000 200,000 400,000 800,000 2,000,000 The net proceeds from the sale of non-cash assets amounted to P260,000. The personal assets and personal liabilities of the partners are as follows: A с B Personal assets 1,200,000 1,040,000 800,000 Personal liabilities (880,000) (880,000) (1,280,000) How much additional contributions shall be made by the partners in order to settle all of the partnership liabilities?
On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership. The following information was made available: Cash 20,000 Accounts receivable 60,000 Inventory 120,000 Equipment 300,000 Total 500,000 Accounts payable 30,000 Payable to B 20,000 A, Capital (20%) 100,000 B, Capital (30%) 150,000 C, Capital (50%) 200,000 Total 500,000 Case #1: Information on the conversion of non-cash assets is as follows: a. P50,000 was collected on accounts receivable; the balance is uncollectible. b. P70,000 was received for the entire inventory. c. The equipment was sold for P250,000 d. P2,000 liquidation expenses were paid. a. The net cash…
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: a. M should get P15,000 and R should get P5,000 b. M should get P12,500, and R should get P7,500 c. each partner should get P6,667 each d. each partner should get P26,667 each
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 Credit
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,…
On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership. 80,000 240,000 480,000 1,200,000 2,000,000 Cash Accounts receivable Inventory Equipment Total Accounts payable to B Payable A, Capital (20%) B, Capital (30%) C, Capital (50%) 800,000 Total 2,000,000 Information on the conversion of non-cash assets is as follows: 120,000 80,000 400,000 600,000 • $40,000 was collected on accounts receivable; the balance is uncollectible. $20,000 was received for the entire inventory. . The equipment was sold for $200,000./ $8,000 liquidation expenses were paid. • • #108,000 was paid to outside creditors, after offset of a 12,000 credit, memorandum received on January 2, 20x1. All of the partners are personally solvent. How much did B receive from the settlement of his interest in the partnership?