A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are Bell, capital Hardy, capital Dennard, capital Suddath, capital Bell's creditors have filed a $39,000 claim against the partnership's assets. The partnership currently holds assets of $480,000 and liabilities of $187,000. An independent appraiser indicates that the assets can be sold for $280,000. Required: Prepare a statement of partnership liquidation to determine the amount of cash that Bell would receive from the sale of partnership assets. Note: Amounts to be deducted should be entered with a minus sign. Balances Sale of assets Subtotal Pay liabilities Subtotal Allocate deficit Subtotal Distribute cash Ending balances $ $ $ $ 96,000 83,000 16,000 98,000 $ $ Cash BELL, HARDY, DENNARD, AND SUDDATH PARTNERSHIP Statement of Partnership Liquidation (Hypothetical) 0 0 0 $ 0 $ 0 $ Assets 0 0 0 0 Liabilities $ $ $ 0 0 0 Bell, Capital Hardy, Capital 40% 30% $ $ 0 $ 0 0 0 0 $ $ $ 0 0 0 0 Dennard, Capital 20% $ $ $ 0 0 $ 0 Suddath, Capital 10% 0 $ $ 0 0 0 0

A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are Bell, capital Hardy, capital Dennard, capital Suddath, capital Bell's creditors have filed a $39,000 claim against the partnership's assets. The partnership currently holds assets of $480,000 and liabilities of $187,000. An independent appraiser indicates that the assets can be sold for $280,000. Required: Prepare a statement of partnership liquidation to determine the amount of cash that Bell would receive from the sale of partnership assets. Note: Amounts to be deducted should be entered with a minus sign. Balances Sale of assets Subtotal Pay liabilities Subtotal Allocate deficit Subtotal Distribute cash Ending balances $ $ $ $ 96,000 83,000 16,000 98,000 $ $ Cash BELL, HARDY, DENNARD, AND SUDDATH PARTNERSHIP Statement of Partnership Liquidation (Hypothetical) 0 0 0 $ 0 $ 0 $ Assets 0 0 0 0 Liabilities $ $ $ 0 0 0 Bell, Capital Hardy, Capital 40% 30% $ $ 0 $ 0 0 0 0 $ $ $ 0 0 0 0 Dennard, Capital 20% $ $ $ 0 0 $ 0 Suddath, Capital 10% 0 $ $ 0 0 0 0

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter11: Partnerships: Distributions, Transfer Of Interests, And Terminations

Section: Chapter Questions

Problem 27P

See similar textbooks

Related questions

Q: Want answer with Calculation

A: Choices Available1. Continue Deception:Pros: Temporary preservation of stock price and company…

Q: my instructor advises this answer is incorrect

A: Present value is an estimate of the present value of future cash values that may be received at a…

Q: Which of the following are examples of how IP can be commercialised? (you may tick more than one…

A: Answer:Licensing and franchising are examples of how intellectual property (IP) can be…

Q: Clearly marking all workpapers “Privileged and Confidential – Attorney Work Product” will prevent…

A: Attorney work product is a fundamental concept in the legal profession, ensuring that attorneys can…

Q: Describe one professional experience in which you used evidence as the basis for decision making and…

A: The objective of the question is to understand the importance of evidence-based decision making in…

Q: According to the Daubert criteria, to qualify as an expert report, the report must:

A: The Daubert criteria refer to a legal standard for the admissibility of expert witness testimony in…

Q: Determine if the mistake is counterbalancing or noncounterbalancing. Give a specific example for…

A: The mistake is counterbalancing or noncounterbalancing will be explained:

Q: The rules for meeting material participation are more strict than the rules for meeting active…

A: Active participation means where you help the management to take right decisions where as for…

Q: Ing FALSE? ) Enact change and those who resist will fall in line after the change lace. ) Managers…

A: The answer is stated below:

Q: What weights should Ms. Thompson recommend for Colin’s strategy? specifically. its not clear from…

A: Portfolio duration and convexity are their weighted average.

Q: C19. What do you understand by the Twin Balance Sheet problem? Note:- Do not provide handwritten…

A: The Twin Balance Sheet problem refers to the stress on balance sheets of both the banking sector and…

Q: When compleling an insurance application, a producer should A.complete as much of the…

A: The producer of insurance has responsibility of taking care of clients and telling every thing about…

Q: Andrea's Trouble With Plagiarism As you recad this passage and answer the questions. head of her…

A: in the world of information that is available it is important to understand that writing article or…

Q: Hello, the explanation you offered is not very clear. Can you tell me what I did wrong?

A: Debt to equity ratio is an important leverage ratio. Debt to equity ratio = total debt/total…

Q: s

A: Interim reporting : An interim statement is a financial report that covers a period of less than a…

Q: Tacit or implicit knowledge, is personal, experiential, context-specific, and hard to formalize and…

A: Knowledge refers to the data, information, and facts that are gained from the experience a person…

Q: David Savage asked you to write a memo presenting the issues and the risks associated with…

A: Memo: A memorandum also called as memo it is a written message that may be used in a business…

Q: Alice bought $P worth of shares in a start-up company. She created the following scenarios with the…

A: Share investments represents buying a portion of equity in a company. We buy shares of a company…

Q: discuss how critical thinking skills will make you less likely to be influenced by arguments that…

A: The fallacies are the wrong move a person takes instead of a rational judgment. They may be…

Q: Provide best Answer As per posible fast

A: Detailed Analysis of the Enron ScandalSituation Setting Up the Ethical DilemmaThe Enron scandal was…

Q: Karen finds that many claim forms were rejected because important information was omitted. How might…

A: Omission of information in claim forms: The claim forms should be filed with complete information…

Q: What is risk of incorrect acceptance? A. The risk that the auditor concludes that a material…

A: The risk of incorrect acceptance is referred to a situation in which the results of an audit sample…

Q: Urgent Please answer a soon as possible. Answer must be plagirism free What is the role of…

A: The financial position of the company can be arrived from the income statement prepared by the…

Question

Note:-

Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Answer completely.
You will get up vote for sure.

A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are
divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are
Bell, capital
Hardy, capital
Dennard, capital
Suddath, capital
Bell's creditors have filed a $39,000 claim against the partnership's assets. The partnership currently holds assets of $480,000 and
liabilities of $187,000. An independent appraiser indicates that the assets can be sold for $280,000.
Required:
Prepare a statement of partnership liquidation to determine the amount of cash that Bell would receive from the sale of partnership
assets.
Note: Amounts to be deducted should be entered with a minus sign.
Balances
Sale of assets
Subtotal
Pay liabilities
Subtotal
Allocate deficit
Subtotal
Distribute cash
Ending balances
$
$
$ 96,000
83,000
16,000
98,000
GA
$
Cash
BELL, HARDY, DENNARD, AND SUDDATH PARTNERSHIP
Statement of Partnership Liquidation (Hypothetical)
0
0
0 $
0 $
O
$
Assets
0
O
0
Liabilities
$
EA
0 $
0
0 $
0
Bell, Capital Hardy, Capital
40%
30%
0
GA
$
0
0
0
$
$
0 $
0
0
0
0
Dennard,
Capital 20%
$
GA
0
Suddath,
Capital 10%
0 $
0 $
0 $
0
0
0
0

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: Define partnership

VIEW

Step 2: Preparing a statement of partnership liquidation:

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

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

Please help me
A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are Bell, capital Hardy, capital Dennard, capital Suddath, capital Bell's creditors have filed a $31,000 claim against the partnership's assets. The partnership currently holds assets of $400,000 and liabilities of $158,000. An independent appraiser indicates that the assets can be sold for $240,000. $ 76,000 66,000 10,000 90,000 Required: Prepare a statement of partnership liquidation to determine the amount of cash that Bell would receive from the sale of partnership assets. Note: Amounts to be deducted should be entered with a minus sign. Balances Sale of assets Subtotal Pay liabilities Subtotal Allocate deficit Subtotal Distribute cash Ending balances Cash BELL, HARDY, DENNARD, AND SUDDATH PARTNERSHIP Statement of Partnership Liquidation (Hypothetical) Assets Liabilities…
A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are Bell, capital $ 111,000 Hardy, capital 93,000 Dennard, capital 10,000 Suddath, capital 104,000 Bell’s creditors have filed a $45,000 claim against the partnership’s assets. The partnership currently holds assets of $540,000 and liabilities of $222,000. If the assets can be sold for $310,000, what is the minimum amount that Bell’s creditors would receive? Multiple Choice $1,000 $4,600 $0 $19,000
A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are Bell, capital $ 106,000 Hardy, capital 91,000 Dennard, capital 12,000 Suddath, capital 102,000 Bell’s creditors have filed a $43,000 claim against the partnership’s assets. The partnership currently holds assets of $520,000 and liabilities of $209,000. An independent appraiser indicates that the assets can be sold for $300,000. Required: Prepare a statement of partnership liquidation to determine the amount of cash that Bell would receive from the sale of partnership assets. Note: Amounts to be deducted should be entered with a minus sign
A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are Bell, capital $ 108,500 Hardy, capital 92,000 Dennard, capital 11,000 Suddath, capital 103,000 Bell’s creditors have filed a $44,000 claim against the partnership’s assets. The partnership currently holds assets of $530,000 and liabilities of $215,500. If the assets can be sold for $305,000, what is the minimum amount that Bell’s creditors would receive?
A partnership is considering possible liquidation because one of the partners (Bell) is personally Insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are Bell, capital Hardy, capital Dennard, capital Suddath, capital $ 111,000 93,000 10,000 104,000 Bell's creditors have filed a $45,000 claim against the partnership's assets. The partnership currently holds assets of $540,000 and liabilities of $222,000. An Independent appraiser Indicates that the assets can be sold for $310,000. Required: Prepare a statement of partnership liquidation to determine the amount of cash that Bell would receive from the sale of partnership assets. Note: Amounts to be deducted should be entered with a minus sign. Balances Cash BELL, HARDY, DENNARD, AND SUDDATH PARTNERSHIP Statement of Partnership Liquidation (Hypothetical) Assets Liabilities Bell, Capital 40% Hardy, Capital 30% Dennard, Capital 20% Suddath, Capital 10% Sale of assets Subtotal $ 0…
A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are Bell's creditors have filed a $43,000 claim against the partnership's assets. The partnership currently holds assets of $520,000 and liabilities of $209,000. An independent appraiser indicates that the assets can be sold for $300,000.
A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are Bell, capital Hardy, capital Dennard, capital Suddath, capital $ 50,000 56,000 14,000 80,000 Bell's creditors have filed a $21,000 claim against the partnership's assets. The partnership currently holds assets of $300,000 and liabilities of $100,000. An independent appraiser indicates that the assets can be sold for $190,000. Required: Prepare a statement of partnership liquidation to determine the amount of cash that Bell would receive from the sale of partnership assets. Note: Amounts to be deducted should be entered with a minus sign. BELL, HARDY, DENNARD, AND SUDDATH PARTNERSHIP Statement of Partnership Liquidation (Hypothetical) Cash Assets Liabilities Bell, Capital Hardy, Capital 40% 30% Dennard, Capital 20% Suddath, Capital 10% Balances Sale of assets Subtotal $ 0 0…
i need the answer quickly
A partnership is in the process of liquidation since only one of the partners(ME) is solvent. Capital balances at the time of liquidation were asfollows. Profits and losses are divided on a 4:2:2:2 basis, respectively. MA, Capital 60,000SA, Capital 67,000YA, Capital 17,000ME, Capital 96,000 MA’s creditors filed a P25,000 claim against the partnership’s assets. Atthat time, the partnership held assets reported at P360,000 and liabilitiesof P120,000. If the assets could be sold for P228,000, what is the minimum amount thatMA’s creditors would have received?A. 38,720 C. 2,500B. 36,000 D. 0
A partnership has decided to liquidate its operations. Prior to beginning the liquidation process, the partnership had cash balances of $12,000 and noncash assets of $210,000. At that time liabilities were $125,000 of which $25,000 represented a note payable to Partner B. The capital information for the current partners is as follows: Partner A Partner B Partner CProfit and loss percentages . . . . . . . . . . . 50% 30% 20%Capital balances . . . . . . . . . . . . . . . . . . . .$75,000 $42,000 $(20,000)The following events occurred over the four-month liquidation period, and it was decided that all available cash would be distributed at the end of each month.Month 1—Payments of $35,000 were received on accounts receivable with a book value of $43,000, and the balance of those accounts were written off. A $12,000 allowance for uncollectible accounts was established against…
Ashvin