As of January 1, 2021, the partnership of Carlin, Yearly, and Granite had the following account balances and percentagesfor the sharing of profits and losses:Cash$160,000Noncash assets410,000Liabilities94,000Carlin, capital (30%)Yearly, capital (40%)Granite, capital (30%)276,000239,500(39,500)The partnership incurred losses in recent years and decided to liquidate. The liquidation expenses were expected to be$20,000.How much of the existing cash balance could be distributed safely to partners at this time?Short Answer Toolbar navigation.B I U S E : = E E E>

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

As of January 1, 2021, the partnership of Carlin, Yearly, and Granite had the following account balances and percentages for the sharing of profits and losses: Cash $160,000 Noncash assets 410,000 Liabilities 94,000 Carlin, capital (30%) Yearly, capital (40%) 276,000 239,500 Granite, capital (30%) (39,500) The partnership incurred losses in recent years and decided to liquidate. The liquidation expenses were expected to be $20,000. How much of the existing cash balance could be distributed safely to partners at this time? Short Answer Toolbar navigation

As of January 1, 2021, the partnership of Carlin, Yearly, and Granite had the following account balances and percentages for the sharing of profits and losses: Cash $160,000 Noncash assets 410,000 Liabilities 94,000 Carlin, capital (30%) Yearly, capital (40%) 276,000 239,500 Granite, capital (30%) (39,500) The partnership incurred losses in recent years and decided to liquidate. The liquidation expenses were expected to be $20,000. How much of the existing cash balance could be distributed safely to partners at this time? Short Answer Toolbar navigation

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

On September 23, 2021 – Pepsi and Coke have both decided to dissolve and liquidate their partnership. The balance sheet/statement of financial position on that date is as follows in the given picture. Required: 1. Prepare the cash priority program. 2. Prepare the liquidation journal entries and the statement of liquidation.
The following account balances were available for the Perry, Quincy, and Renquist partnership just before it entered liquidation: Cash $ 90,000 Liabilities $ 170,000 Noncash assets 300,000 Perry, capital 70,000 Quincy, capital 50,000 Renquist, capital 100,000 Total $ 390,000 Total $ 390,000 Included in Perry’s Capital account balance is a $20,000 partnership loan owed to Perry. Perry, Quincy, and Renquist shared profits and losses in a ratio of 2:4:4. Liquidation expenses were expected to be $15,000. All partners were insolvent. For what amount would the noncash assets need to be sold in order for Quincy to receive some cash from the liquidation? Multiple Choice A. Any amount in excess of $170,000. B. Any amount in excess of $190,000. C. Any amount in excess of $260,000. D. Any amount in excess of $280,000. E. Any amount in excess of $300,000.
On December 31, 2020, the partnership of Abe, Bravo, Charlie, and Delta decided to liquidate the following account balances: Cash NCA Liab. Bravo Charlie Abe Bravo Charlie Delfin Loan Loan (10%) (20%) (45%) (25%) 20,000 180,000 100,000 10,000 5,000 15,000 25,000 15,000 30,000 Assuming that that Bravo and Charlie are limited partners and Abe, Bravo, Charlie and Delfin are solvent up to 10,000; 15,000; 10,000; and 5,000 respectively; determine the cash settlement given to Abe if the NCAs were sold for 100,000
As of December 31, 2020, the books of Abad, Sison, and Dario Partnership showed capital balances of Abad- 80,000; Sison - 50000 and Dario - 10,000. The partners’ profit and loss ratio was 3:2:1 respectively. The partners decided to dissolve and liquidate. They sold all the non-cash assets for 74,000. After settlement of all liabilities amounting to 34,000, they still have 56,000 cash left for distribution. How much is the loss on realization?
RR, SS, and TT decided to dissolve the partnership on November 30, 2015. Their capital balances and profit ratio on this date, follow: Capital Bal. P & L RR P 50,000 40% 60,000 20,000 30% TT 30% The net income from January 1 to November 30, 2015 is P 44,000. Also, on this date, cash and liabilities are P 40,000 and P 90,000 respectively. For RR to receive P 55,200 in full settlement of his interest in the firm, how much must be realized from the sale of the firm's non-cash assets? а. Р 196,000 b. Р 177,000 P 193,000 d. P 187,000
On September 15, 2021, LCM Partnership entered into liquidation. The partners' profit and loss ratios and capital balances on this date were as follows: L 25% 2,500,000.00 C 35% 5,400,000.00 M 40% 3,700,000.00 Total 11,600,000.00 The partnership has liabilities amounting to P 4,400,000, including a loan from C in the amount of P600,000. Cash on hand before starting the liquidation process is P 800,000. Non-cash assets amounting to P 7,400,000 were sold at book value and the remainder of the non-cash assets were sold at a loss of P 4,200,000. How much cash will be distributed to the partners?
R, N, and A are partners of RNA Partnership. They decided to liquidate on March 31, of the current year. On this date, they have non-cash assets of 530,000 and liabilities of 250,000, including loan from A of 50,000. R, N, and A have capital balances of 80,000, 130,000, and 90,000, respectively. Profits and losses are 3:3:4 for R, N, and A. All partners are solvent. Determine the total loss on realization if A received 25,000 in the final settlement.
The Bui, Clemente, Devian, and Toussaint partnership has terminated operations and is undergoing liquidation. Sales commissions and other liquidation expenses are expected to total $19,000. The partnership’s balance sheet prior to the commencement of liquidation is as follows: Cash $ 27,000 Liabilities $ 40,000 Noncash assets 254,000 Bui, capital (20%) 18,000 Clemente, capital (40%) 40,000 Devian, capital (20%) 48,000 Toussaint, capital (20%) 135,000 Total assets $ 281,000 Total liabilities and capital $ 281,000 Required: Prepare a predistribution plan for this partnership.
Kim, Nicolas, and Troy are general partners in KNT Partnership sharing profits and losses in the ratio of 2:4:4, respectively. The partnership suffered financial distress and the partners decided to liquidate the partnership in December 2019. Accounts, after revaluation, adjustment, and correction, had the following ledger balances: Cash P 90,000 Accounts Receivable 205,000 Allowance for Doubtful Accounts 5,000 Merchandise Inventory 180,000 Equipment Accumulated Depreciation Equipment Accounts Payable Kim, Loan [Loan Payable - Kim] Troy, Loan [Loan Payable Troy] Kim, Capital Nicolas, Capital Troy, Capital 600,000 102,000 182,000 18,000 90,000 100,000 213,000 365,000 For the independent cases that follow in the course of winding up, prepare a statement of liquidation and necessary journal entries to record the liquidation process: A. The entire net receivable was collected, all inventories were sold at cost, and equipment was sold at its carrying value. B. Only 90% of net receivable was…
On July 1, 2021, X, Y and Z formed a partnership with X as an industrial partner, Y and Z contributed cash of P80,000 and P120,000 respectively. They agree to divide profits in the ratio of 2:53 to X Y and Z respectively. If operations for the year 2021 resulted to a loss of P140,000 How much is the share of Z?⚫
The following capital balances as of October 31, 2016 for the Partnership of Shell, Joke and No were as follows : Shell , Capital 204,000 Joke, Capital 132,000 No, Capital 360,000 No has decided to retire from the partnership on October 31. Their profit and loss ratio is 2/1 / 7 respectively . On October 31, the following assets should be appraised : Balance as of October 31 Appraised value Land 250,000 300,000 Machinery 120,000 100,000 Questions: 1. What is the share of Shell in the gain/ (loss) in the revaluations of Assets ? 2. What is the share of No in the gain/ (loss) in the revaluation of Assets?