33 04:07:08 The partnership of Rachel, Adams, and Nixon has the following trial balance on September 30, 20X9: Cash Accounts Receivable (net) Inventory Plant and Equipment (net) Accounts Payable Rachel, Capital Adams, Capital Nixon, Capital Total Debit $ 20,000 30,000 35,000 215,000 Credit $ 40,000 120,000 90,000 50,000 $ 300,000 $ 300,000 The partners share profits and losses as follows: Rachel, 50 percent; Adams, 30 percent; and Nixon, 20 percent. The partners are considering an offer of $180,000 for the accounts receivable, inventory, and plant and equipment as of September 30. The $180,000 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 September 30, 20X9, showing how much cash each partner will receive if the offer to sell the assets is accepted.
33 04:07:08 The partnership of Rachel, Adams, and Nixon has the following trial balance on September 30, 20X9: Cash Accounts Receivable (net) Inventory Plant and Equipment (net) Accounts Payable Rachel, Capital Adams, Capital Nixon, Capital Total Debit $ 20,000 30,000 35,000 215,000 Credit $ 40,000 120,000 90,000 50,000 $ 300,000 $ 300,000 The partners share profits and losses as follows: Rachel, 50 percent; Adams, 30 percent; and Nixon, 20 percent. The partners are considering an offer of $180,000 for the accounts receivable, inventory, and plant and equipment as of September 30. The $180,000 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 September 30, 20X9, showing how much cash each partner will receive if the offer to sell the assets is accepted.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:33
8 04:07:08
The partnership of Rachel, Adams, and Nixon has the following trial balance on September 30, 20X9:
Cash
Accounts Receivable (net)
Inventory
Plant and Equipment (net)
Accounts Payable
Rachel, Capital
Adams, Capital
Nixon, Capital
Total
Debit
$ 20,000
30,000
35,000
215,000
Credit
$ 40,000
120,000
90,000
50,000
$ 300,000 $ 300,000
The partners share profits and losses as follows: Rachel, 50 percent; Adams, 30 percent; and Nixon, 20 percent. The partners are considering an offer of
$180,000 for the accounts receivable, inventory, and plant and equipment as of September 30. The $180,000 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 September 30, 20X9, showing how much cash each partner will receive if the offer to sell the assets is accepted.
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