3. As of January 1, 2018, the partnership of Canton, Yulls, and Garr had the following account balances and percentages for the sharing of profits and losses: Cash $ 80,000 Noncash assets 205,000 Liabilities 47,000 Canton, capital (30%) 138,000 Yulls, capital (40%) 119,500 Garr, capital (30%) (19,500) The partnership incurred losses in recent years and decided to liquidate. The liquidation expenses were expected to be S10,000. A. How much of the existing cash balance could be distributed safely to partners at this time? B. How much cash should Canton receive at this time, pursuant to a proposed schedule of liquidation?

3. As of January 1, 2018, the partnership of Canton, Yulls, and Garr had the following account balances and percentages for the sharing of profits and losses: Cash $ 80,000 Noncash assets 205,000 Liabilities 47,000 Canton, capital (30%) 138,000 Yulls, capital (40%) 119,500 Garr, capital (30%) (19,500) The partnership incurred losses in recent years and decided to liquidate. The liquidation expenses were expected to be S10,000. A. How much of the existing cash balance could be distributed safely to partners at this time? B. How much cash should Canton receive at this time, pursuant to a proposed schedule of liquidation?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: The following condensed balance sheet is for the partnership of Hardwick, Saunders, and Ferris, who…

A: The Schedule of liquidation represents the remaining amount after deducting the liabilities.

Q: The partnership of Winn, Xie, Yang, and Zed has the following balance sheet: Cash Other assets $…

A: An agreement between two or more individuals to operate a firm and divide its earnings and losses…

Q: As of January 1, 2021, the partnership of Carlin, Yearly, and Granite had the following account…

A: As granite capital is in negative the partner will bring cash upto that amount. 1. Determination…

Q: Required information [The following information applies to the questions displayed below.] Turner,…

A: Partnership : Arrangement between two or more people whereby they agree to manage business…

Q: Required information [The following Information applies to the questions displayed below] The Field,…

A: Liquidation of a partnership firm means termination of the partnership agreement and closing down…

Q: The partnership of Winn, Xie, Yang, and Zed has the following balance sheet: Cash Other assets $…

A: Liquidation is the process of selling off assets to repay all the liabilities while dissolving a…

Q: Required information [The following information applies to the questions displayed below.] Ramer and…

A: Partnership means where two or more person comes together to do some common business activity and…

Q: Festus, capital

A: The available cash is given as,

Q: Required information [The following information applies to the questions displayed below] The Fleld,…

A: A journal entry is a record of a single business transaction. It includes the date, the amount to be…

Q: In 2017, Ryan, Chen and Win established a firm partnership and they agreed to share the profits in a…

A: The partner's capital account summary shows the balances due to the partners.

Question

3. As of January 1, 2018, the partnership of Canton, Yulls, and Garr had the following account balances
and percentages for the sharing of profits and losses:
Cash
$ 80,000
Noncash assets
205,000
Liabilities
47,000
Canton, capital (30%)
138,000
Yulls, capital (40%)
119,500
Garr, capital (30%)
(19,500)
The partnership incurred losses in recent years and decided to liquidate. The liquidation expenses were
expected to be S10,000.
A. How much of the existing cash balance could be distributed safely to partners at this time?
B. How much cash should Canton receive at this time, pursuant to a proposed schedule of
liquidation?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The partnership of Maya, Nova, and Oscar was dissolved. By August 1, 2014, all assets hadbeen converted into cash and all partnership liabilities were paid. The partnership balancesheet on August 1, 2014 (with partner residual profit and loss sharing percentages) was asfollows: Cash $100,000 Maya, capital (30%) $ 8,000 Nova, capital (20%) (120,000) Oscar, capital (50%) 212,000 Total assets $100,000 Total equity $ 100,000 The value of partners' personal assets and liabilities on August 1, 2014 were as follows: Maya Nova Oscar Personal assets $148,000 $240,000 $112,000 Personal liabilities 144,000 160,000 120,000 Required:Prepare the final statement of partnership liquidation.
The partnership of Winn, Xie, Yang, and Zed has the following balance sheet: Cash Other assets $ 39,000 256,000 Liabilities $ 51,000 Winn, capital (50% of profits and losses) Xie, capital (38%) 69,000 87,000 Yang, capital (10%) zed, capital (18%) 49,000 39,000 Zed is personally insolvent, and one of Zed's creditors is considering suing the partnership for the $5,000 that is currently owed. The creditor realizes that this litigation could result in partnership liquidation and does not wish to force such an extreme action unless Zed is reasonably sure of obtaining at least $5,000 from the liquidation. Required: a. Prepare a predistribution plan to determine the amount for which the partnership must sell the other assets to ensure that Zed receives $5,000 from the liquidation. Liquidation expenses are expected to be $24,000. b. For how much must the partnership sell the other assets to ensure that Zed receives $5,000 from the liquidation? Complete this question by entering your answers in…
The following condensed balance sheet is for the partnership of Miller, Tyson, and Watson, who share profits and losses in the ratio of 6:2:2, respectively: Cash $ 50,000 Liabilities $ 42,000 Other assets 150,000 Miller, capital 69,000 Tyson, capital 69,000 Watson, capital 20,000 Total assets $ 200,000 Total liabilities and capital $ 200,000 a. Assuming no liquidation expenses, calculate the safe payments that can be made to partners at this point in time.
Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.) Turner, Roth, and Lowe are partners who share income and loss in a 2:3:5 ratio (in percents: Turner, 20%; Roth, 30%; and Lowe, 50% ). The partners decide to liquidate the partnership. Immediately before liquidation, the partnership balance sheet shows total assets, $138,000; total liabilities, $88,000; Turner, Capital, $3,500; Roth, Capital, $14,500; and Lowe, Capital, $32,000. Cash received from selling the assets was sufficient to repay all but $33,000 to the creditors. Exercise 12-14 Liquidation of limited partnership LO P5 Assume that the Turner, Roth, and Lowe partnership is a limited partnership. Turner and Roth are general partners and Lowe is a limited partner. How much should each partner contribute to cover the remaining capital deficiency of $33,000? (Do not round intermediate calculations. Losses and deficits amounts to be…
Adams, Peters, and Blake share profits and losses for their APB Partnership in a ratio of 2:3:5. When they decide to liquidate, the balance sheet is as follows: Assets Liabilities and Capital $ 49,000 Cash Adams, Loan Other Assets Total Assets 11,800 218,000 Liabilities Adams, Capital Peters, Capital Blake, Capital Total Liabilities and Equities $ 278,800 $ 45,500 64,900 88,500 79,900 $ 278,800 Liquidation expenses are expected to be negligible. No interest accrues on loans with partners after termination of the business. During the liquidation process for the APB Partnership, the following events occurred: 1. During the first month of liquidation, noncash assets with a book value of $89,500 were sold for $68,000, and $22,500 of the liabilities were paid. 2. During the second month, the remaining noncash assets were sold for $78,000. The loan receivable from Adams was collected, and the rest of the creditors were paid. 3. Cash is distributed to partners at the end of each month.…