Carney, Pierce, Menton, and Hoehn are partners who share profits and losses on a 4:3:2:1 basis, respectively. They are beginning to liquidate the business. At the start of this process, capital balances are Multiple ChoiceOOCarney will be the last partner to receive any available cash.Carney will collect a portion of any available cash before Hoehn receives money.The first available $7,000 will go to Menton.The first available $5,000 will go to Hoehn. Carney, capitalPierce, capitalMenton, capitalHoehn, capital$70,00030,00053,00023,000

In the event that the partnership chooses to dissolve, the assets of the partnership are liquidated…

Carney, Pierce, Menton, and Hoehn are partners who share profits and losses on a 4:3:2:1 basis, respectively. They are beginning to liquidate the business. At the start of this process, capital balances are

Carney, Pierce, Menton, and Hoehn are partners who share profits and losses on a 4:3:2:1 basis, respectively. They are beginning to liquidate the business. At the start of this process, capital balances are

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: In Sheridan Co. capital balances are Irey $40,000 and Pedigo $56.600. The partners share income…

A: Admission of the partner is the process where a new person is added into the business of partnership…

Q: How much are the capital credit and the adjusted capital balances of A and B upon formation?

A: Capital credit represents a partner’s share of the total assets of the partnership based on their…

Q: Jack, Henry and Leo were partners profit sharing in the ratio of 2:2:1. Following omissions were…

Q: After closing the temporary owner equity accounts into income summary, and after allocating the net…

A: Partnership: Its an agreement between two or more members to form a business called partnership.

Q: A local partnership was considering the possibility of liquidation. Capital account balances at that…

A: Introduction: A partnership is an agreement between two or more people to manage a business and…

Q: A. B and C are partners in a firm sharing profits and losses as 7:5:3 respectively. B retires and…

A: Step 1: B's Share DistributionB's share: 5/15A takes 3/5 of B's share = (3/5) x (5/15) = 3/15C takes…

Q: If a business is owned by three partners, how many capital accounts are required on the books? Why

A: A partnership firm is model of business structure which consider two or more partners agrees to…

Q: Armada Shipping is a global logistics company. The company is organized into two divisions:…

A: Workingstotal cost incurred by accounts receivable department$288,000no. of bills made1,200cost per…

Q: After Non-Cash Assets have been sold and liabilities paid, the final step in the liquidation process…

A: The gains and losses are equally distributed between the partners. It indicates that A and B are…

Q: In liquidation, balances prior to the distribution of cash to the partners are: Cash $239000; Mark,…

A: A partnership is a contract between two or more persons to form a business and share profits and…

Q: Nicholas Jay, Kamla Paul, and Stephanie Ram plan to liquidate their partnership. They have always…

A: Partnership means where two or more person comes together to form the business and share profit and…

Q: Y and Z have capital balances of $80, 000, $180,000 and $60,000 respectively. Immediately prior to…

A: Partnership refers to the act of agreement or the contractual arrangement between two or more people…

Q: Chen, Korhonen, Lebuca, and Swid are partners who share profits and losses on a 4:3:2:1 basis,…

A: Step 1: Calculate Remaining Balances After Each Assumed LossBeginning Balances:Chen:…

Q: Nicholas Jay, Kamla Paul, and Stephanie Ram plan to liquidate their partnership. They have always…

A: Partnership means where two or more person comes together to form the business and share profit and…

Q: In liquidation of LLP, for allocation of realization losses to partners, the journal entry includes:…

A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…

Q: 1. nformation on an entitys defined benefit obligation is as follows Present value of defined…

A: Interest cost = beginning defined benefit obligation x discount rate = 130000*12% = 15600

Q: After closing the temporary owners' equity accounts into Income Summary, and after allocating the…

A: Partnership: Minimum two members are required to form a partnership business. The liability of the…

Q: UMA, owner of UMA General Merchandising, and ASA, sole proprietor of ASA Trading, decided to combine…

A: A partnership is a commercial arrangement in which two or more people do business together and split…

Q: Chen, Korhonen, Lebuca, and Swid are partners who share profits and losses on a 4:3:2:1 basis,…

A: Part 2: Explanation:Step 1: Determine the order of distribution based on the profit-sharing ratio.-…

Q: St. George, Incorporated

A: St. Georges net book income before tax $711,800 Installment sale gain (50.12% × $62,000)…

Q: Abram, Macher, and Bailey have capital balances of $20,000, $30,000, and $50,000, respectively. The…

A: Capital Allocation:Abram = 30000*20000 / (20000 + 30000 + 50000) = $6,000Macher = 30000*30000 /…

Question

Multiple Choice
O
O
Carney will be the last partner to receive any available cash.
Carney will collect a portion of any available cash before Hoehn receives money.
The first available $7,000 will go to Menton.
The first available $5,000 will go to Hoehn.

Carney, capital
Pierce, capital
Menton, capital
Hoehn, capital
$70,000
30,000
53,000
23,000

Definition Definition Amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item

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: Introduction

VIEW

Step 2: Workings

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

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

Issac and Karl are partners. Issac has a capital balance of $25,000 and Karl has a capital balance of $20,000. Bill invested $15,000 to acquire an ownership interest of 30%. How does this transaction affect the balance sheet items? O Asset increases and the equity remains unchanged. O Assets increase, liabilities decrease, and the equity remain unchanged. O Both assets and equity increase. O Assets increase and the equity decreases.
Ana, Bea, and Cara are partners sharing profits and losses in the ratio of 1:1:2, respectively. They decided to liquidate the business. The assets were sold and liabilities amounting to $20,000 were paid. At this point, the capital balances of the partners are as follows: Ana $20,000 credit Bea 15,000 debit Cara 30,000 credit Bea is personally insolvent. 1. How much cash is available for distribution to partners? 2. How much cash is received by Ana and Cara?
Hershey, Inigo, Jessa and Kyle are partners who share profits and losses in the ratio of 3:2:1:4. As of the current date, the partners become insolvent so they decide to liquidate their business. The capital balance of each partner amount to P30,000, P35,000, P20,000 and P50,000 to Hershey, Inigo, Jessa and Kyle respectively. At this time, total liabilities of the partnership amount to P180,000. From the data above, answer the following independent questions: 14. If the partnership received P185,000 from the sale of all non-cash assets of the partnership, determine the amount of cash that Hershey is to receive assuming there is no cash balance before realization and all partners are insolvent at the time of liquidation. A. P9,000 C. PO B. P2,000 D. P1,500 15. If Kyle receives P12,000 as settlement of his interest, how much were the non-cash assets sold assuming there is no cash balance before realization? A. P220,000 B. P95,000 C. P315,000 D. P180,000
For Industry H, determine each partner's share of income assuming the partners agree to share income by giving a $67,700 per year salary allowance to Price, a $126,100 per year salary allowance to Waterhouse, a $113,700 per year salary allowance to Coopers, a 15% interest on their initial capital investments, and the remaining balance shared equally. (Enter all allowances as positive values. Enter losses as negative values.) Important! Be sure to click the correct Industry at the top of the dashboard. Net income (loss) Salary allowances Balance of income (loss) Interest allowances Balance of income (loss) Balance allocated equally Balance of income (loss) Shares of each partner Initial partnership investments Net income Allocation of Partnership Income Price Total net income Total 0 Waterhouse $ $ PRICE, WATERHOUSE, AND COOPERS Statement of Partners' Equity For Year Ended December 31 Price Coopers 0 0 Waterhouse 0 0 0 $ For Industry H, prepare a statement of partners' equity for the…
Chen, Korhonen, Lebuca, and Swid are partners who share profits and losses on a 4:3:2:1 basis, respectively. They are beginning to liquidate the business. At the start of this process, capital balances are Chen, capital Korhonen, capital Lebuca, capital Swid, capital $ 60,000 27,000 43,000 20,000 Required: Prepare a predistribution plan to determine which partner will be the first to receive cash from the liquidation and what amount that partner will receive before other partners receive any cash. Note: Amounts to be deducted should be entered with a minus sign. Beginning balances Assumed loss Balances Assumed loss Balances Assumed loss Balances $ Chen Korhonen 60,000 $ Lebuca 27,000 $ 43,000 $ Swid 20,000:
In Indigo Co., capital balances are Adrienne $61,000 and Dino $79,000. The partners share income equally. Javier is admitted to the firm with a 40% interest by an investment of cash of $88,000. Journalize the admission of Javier. (Credit account titles are automatically Indented when the amount Is entered. Do not Indent manually. LUS all deblt entrles before credit entrles.) Account Titles and Explanation Debit Credit, Cash I 88,000 Adrienne, Capital Dino, Capital Javier, Capital
After the tangible assets have been adjusted to current market prices, the capital accounts of Grayson Jackson and Harry Barge have balances of $64,900 and $86,500, respectively. Lewan Gorman is to be admitted to the partnership, contributing $43,300 cash to the partnership, for which he is to receive an ownership equity of $50,500. All partners share equally in income. a. Journalize the entry to record the admission of Gorman, who is to receive a bonus of $7,200. If an amount box does not require an entry, leave it blank. Cash Grayson Jackson, Capital Harry Barge, Capital Lewan Gorman, Capital b. What are the capital balances of each partner after the admission of the new partner? Partner Balance Grayson Jackson $ Harry Barge $ Lewan Gorman $
Chen, Korhonen, Lebuca, and Swid are partners who share profits and losses on a 4:3:2:1 basis, respectively. They are beginning to liquidate the business. At the start of this process, capital balances are Chen, capital Korhonen, capital Lebuca, capital Swid, capital Required: $ 68,000 29,400 51,000 22,400 Prepare a predistribution plan to determine which partner will be the first to receive cash from the liquidation and what amount that partner will receive before other partners receive any cash. Note: Amounts to be deducted should be entered with a minus sign. Beginning balances Assumed loss Balances Assumed loss Balances Assumed loss Balances Chen Korhonen Lebuca Swid $ 68,000 $ 29,400 $ 51,000 $ 22,400