Barney, Betty, and Rubble are partners in a business that is in the process of liquidation. On January 1, 2021, the books show the balances indicated: Cash 25,000 Barney Capital 72,000 Inventory 72,000 Betty Capital 28,000 Supplies 18,000 Rubble Capital 15,000 • The partners have equal shares in profits and losses. • The cash is distributed to partners on January 1, 2021. • Inventory and supplies are sold for a lump-sum price of $81,000 on February 9, 2021. • Cash on hand is distributed to the partners in final liquidation of the business on February 10, 2021. 1) Compute the amount of cash distributed to the partners on January 1, 2021. 2) Compute the amount of cash distributed to the partners on February 10, 2021
Barney, Betty, and Rubble are partners in a business that is in the process of liquidation. On
January 1, 2021, the books show the balances indicated:
Cash 25,000 Barney Capital 72,000
Inventory 72,000 Betty Capital 28,000
Supplies 18,000 Rubble Capital 15,000
• The partners have equal shares in
• The cash is distributed to partners on January 1, 2021.
• Inventory and supplies are sold for a lump-sum price of $81,000 on February 9, 2021.
• Cash on hand is distributed to the partners in final liquidation of the business on February
10, 2021.
1) Compute the amount of cash distributed to the partners on January 1, 2021.
2) Compute the amount of cash distributed to the partners on February 10, 2021.
A partnership is a corporate structure in which two or more people co-own an organization and agree to share the company's revenues and losses. Each member of such a business is known as a Partner, and together they form a partnership firm. In a partnership, each owner contributes to the firm's success. These can take the shape of ideas, property, money, or even a mix of all three. Partners share gains and losses in proportion to their respective stakes.
Trending now
This is a popular solution!
Step by step
Solved in 5 steps with 8 images
