3.Rob Davis, Stewart Vintu, and Vern Wilson are liquidating their partnership. Before sellingthe assets and paying the liabilities, the capital balances are Davis $40,000; Vintu, $24,000;and Wilson, $16,000. The profit-and-loss-sharing ratio has been 1:1:2 for Davis, Vintu, andWilson, respectively. The partnership has $64,000 cash, $38,000 non-cash assets, and$22,000 accounts payable.RequirementsAssuming the partnership sells the non-cash assets for $46,000, record the journal entriesa. for the sale of non-cash assets,b. allocation of gain or loss on liquidation,c. the payment of the outstanding liabilities,d. the distribution of remaining cash to partners.4.The balance sheet of Morrisey Management Consulting, Inc. at December 31, 2015,reported the following stockholders' equity:Stockholders' EquityPaid-in CapitalCommon Stock-$10 Par Value, 300,000 sharesauthored 25.000 shares sued and outstandingPald-in Capital in Excess of Par-CommonTotal Paid-in CapitalRetained EarningsTotal Stockholden Equity$250,000320,000$70,000158,000$728,000During 2016, Morrisey completed the following selected transactions:Feb. 6 Declared a 15% stock dividend on common stock. The market value ofMorrisey's stock was $23 per share.15Distributed the stock dividend.Jul. 29 Purchased 2,100 shares of treasury stock at $23 per share.Nov. 27 Declared a $0.20 per share cash dividend on the common stock outstandingRequirementsecord the transactions in the general journal. (Hint: for the last activity on Nov.27, don'tget the effect of stock dividends and treasury stock transactions.)

As you have asked multiple question we can solve only first question for you please repost the other…

3.Rob Davis, Stewart Vintu, and Vern Wilson are liquidating their partnership. Before selling the assets and paying the liabilities, the capital balances are Davis $40,000; Vintu, $24,000; and Wilson, $16,000. The profit-and-loss-sharing ratio has been 1:1:2 for Davis, Vintu, and Wilson, respectively. The partnership has $64,000 cash, $38,000 non-cash assets, and $22,000 accounts payable. Requirements Assuming the partnership sells the non-cash assets for $46,000, record the journal entries a. for the sale of non-cash assets, b. allocation of gain or loss on liquidation, c. the payment of the outstanding liabilities, d. the distribution of remaining cash to partners.

3.Rob Davis, Stewart Vintu, and Vern Wilson are liquidating their partnership. Before selling the assets and paying the liabilities, the capital balances are Davis $40,000; Vintu, $24,000; and Wilson, $16,000. The profit-and-loss-sharing ratio has been 1:1:2 for Davis, Vintu, and Wilson, respectively. The partnership has $64,000 cash, $38,000 non-cash assets, and $22,000 accounts payable. Requirements Assuming the partnership sells the non-cash assets for $46,000, record the journal entries a. for the sale of non-cash assets, b. allocation of gain or loss on liquidation, c. the payment of the outstanding liabilities, d. the distribution of remaining cash to partners.

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

As of July 31, the books of BSA Partnership showed capital balances of $40,000 for Ben, P25,000 for Echo, and P5,000 for Ned. They share profits and losses in the ratio of 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 had cash of P28,000 left for distribution. Assuming that any capital debit balance was uncollectible, Ben's share in the distribution of P28,000 cash is
A local partnership is liquidating and has only two assets (cash of $10,000 and land with a cost of $35,000). All partnership liabilities have been paid. All partners are personally insolvent. The partners have capital balances and share profits and losses as follows. If the land is sold for $25,000, how much cash does each partner receive in a final settlement? If the land is sold for $15,000, how much cash does each partner receive in a final settlement? If the land is sold for $5,000, how much cash does each partner receive in a final settlement?
May, Jun, and Julie are partners with profit and loss ratio of 2:2:1 and capital balances of P1,200,000, P1,000,000 and P600,000, respectively. Julie decided to withdraw from the partnership to focus on her coffee business. She was paid P1,000,000 by the partnership for her capital interest. The difference in amount is due to the recognition of bonus. How much is the capital balance of May after the withdrawal of Julie?
The partnership of Gordon, Handel, and Mitchell is considering possible liquidation because partner Mitchell is personally insolvent. The partners have the following capital account balances: $120,000, $140,000, and $80,000, respectively, and share profits and losses 35%, 45%, and 20%, respectively. The partnership has $400,000 in noncash assets that can be sold for $300,000. The partnership has $20,000 cash on hand, and $80,000 in liabilities. What is the minimum that partner Mitchell’s creditors would receive if they have filed a claim for $100,000? A. 0 B. 20,000 C. 60,000 D. 80,000 E. 100,000
Mohammad, Ahmed, and Mahmmod formed a partnership with income-sharing ratios of 50%, 30%, and 20%, respectively. Cash of 300,000 was available after the partnership's assets were liquidated. Prior to the final distribution of cash, Mohammad's capital balance was 200,000, Ahmed's capital balance was 150,000, and Mahmood's had a capital deficiency of 50,000. Assuming Mahmmod was unable to contributes cash to match his capital deficiency, Mohammad should recelve 200,000 a 168.750 bO 131,250 -C O 175,000 d O
Jessica and Rufus admit Jose as a 25% partner for a contribution of $120, 000 Jessica has capital and a profit /loss ratio of $280, 000 and 70%, respectively. Rufus has capital and a profit/loss ratio of $150, 000 and 30%, respectively. The three parties agree that some of the partnership's investment assets are overvalued. What is the entry to correct this overvaluation? (You do not need to write the entry to admit Jose.) don't use ai answer,i will 5 upvotes
The partnership of Rachel, Joy, and Cecilia has the following account balances: Cash -36,000 Noncash assets - 100,000 Liabilities - 17,000 Rachel, capital - 69,000 Joy, capital - (8,000) deficit Cecilia, capital - 58,000 This partnership is in the process of being liquidated. Rachel and Joy are each entitled to 40 percent of all profits and losses with the remaining 20 percent to Cecilia how much is to be paid to Cecilia?
Daggett, Lamppin, and Pendergast are partners who share profits and losses 50%, 30%, and 20%, respectively. Their capital balances are $140,000, $80,000, and $55,000, respectively. (a) Your answer is correct. Assume Sanford joins the partnership by investing $135,000 for a 25% interest with bonuses to the existing partners. Prepare the journal entry to record his investment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation Cash Sanford, Capital Daggett, Capital Lamppin, Capital Pendergast, Capital + + + Debit 135000 Credit 102500 16250 9750 6500
Kimberly Payne and Arionna Maples decide to form a partnership by combining the assets of their separate businesses. Payne contributes the following assets to the partnership: cash, $20,000; accounts receivable with a face amount of $145,000 and an allowance for doubtful accounts of $4,200; merchandise inventory with a cost of $92,000; and equipment with a cost of $136,000 and accumulated depreciation of $45,000.The partners agree that $5,000 of the accounts receivable are completely worthless and are not to be accepted by the partnership, that $4,400 is a reasonable allowance for the uncollectibility of the remaining accounts, that the merchandise inventory is to be recorded at the current market price of $101,700, and that the equipment is to be valued at $81,200.Journalize the partnership’s entry to record Payne’s investment.
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.…
Danks, Vernersen, and Walsh are liquidating their partnership. Before selling the assets and paying the liabilities, the capital balances are Danks $40,000; Vernersen, $26,000; and Walsh, $16,000. The profit-and-loss-sharing ratio has been 3:1:1 for Danks, Vernersen, and Walsh, respectively. The partnership has $65,000 cash, $42,000 non-cash assets, and $25,000 accounts payable. Read the requirements. .... . Requirement 1. Assuming the partnership sells the non-cash assets for $49,000, record the journal entries for the sale of non-cash assets, allocation of gain or loss on liquidation, the payment of the outstanding liabilities, and the distribution of remaining cash to partners. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Journalize the sale of the non-cash assets for $49,000. Date Accounts and Explanation Requirements Debit Credit Dec. 31 1. Assuming the partnership sells the non-cash assets for $49,000, record the journal…
A partnership has the following account balances: Cash, $84,000; Other Assets, $610,000, Liabilities, $374,000; Nixon (50% of profits and losses), $150,000; Cleveland (30%), $100,000; Pierce (20%), $70,000. The company liquidates, and $15,000 becomes available to the partners. Who gets the $15,000? 4- 5- The partnership of W, X, Y, and Z has the following balance sheet: Cash Other assets $50,000 305,000 Liabilities W, capital (50% of profits and losses) X, capital (30%) Y, capital (10%) Z, capital (10%) $ 60,000 80,000 105,000 60,000 50,000 Z is personally insolvent, and one of his creditors is considering suing the partnership for the $25,000 that is currently due. The creditor realizes that liquidation could result from this litigation and does not wish to force such an extreme action unless the creditor is reasonably sure of getting the money that is due. If the partnership sells the other assets, how much money must it receive to ensure that $25,000 would be available from Z's…