Chen, Korhonen, Lebuca, and Swid are partners who share profits and losses on a 4:3:2:1 basis, respectively. They are beginning toliquidate the business. At the start of this process, capital balances areChen, capitalKorhonen, capitalLebuca, capitalSwid, capitalRequired:$ 62,00027.60045,00020,600Prepare a predistribution plan to determine which partner will be the first to receive cash from the liquidation and what amount thatpartner will receive before other partners receive any cash.Note: Amounts to be deducted should be entered with a minus sign.Beginning balancesAssumed lossBalancesAssumed lossBalancesAssumed lossBalances* Answer is not complete.ChenKorhonenLebucaSwid62,000 $$ 92,000(36.800)27,600 $(27,600)45,000 $(18,400)20,600(9,200)$25,200 $0 $26,600 $11,400(25.200)

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

Answered: Chen, Korhonen, Lebuca, and Swid are…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Partners Thomas, Adams and Jones have capital balances of $24,000, $45,000, and $90,000 respectively. They split profits in the ratio of 3:3:4, respectively. Under a predistribution plan, one of the partners will get the following total amount in liquidation before any other partners get anything: a. P22,500 b. P30,000 c. P40,000 d. P75,000
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, capital $ 67,000 Pierce, capital 29,100 Menton, capital 50,000 Hoehn, capital 22,100 Which of the following statements is true? Multiple Choice Carney will collect a portion of any available cash before Hoehn receives money. Carney will be the last partner to receive any available cash. The first available $4,100 will go to Hoehn. The first available $5,800 will go to Menton.
Lebron and Wade, partners who share profits and losses equally decided to liquidate their partnership by installment. The statement of financial position showed Cash – P 35,000; P Liabilities – P 20,000; Lebron, Capital – P71,000; and Wade, Capital – P 54,000. Liquidation expenses amounted to P 10,000. How much cash can be distributed safely toeach partner at this point?
(All partners sacrifice) : A and B partners sharing profits and losses in the ratio of 3:2. They admit C into partnership for 1/4 share in profits. C’s brings $ 3,00,000 as capital and $ 1,00,000 as goodwill. New profit sharing ratio of the partners shall be 3:3:2. Pass necessary Journal entries.
How much cash must be contributed by each of the partners after they contributed their properties (Use this format without the quotation marks: "100000; 25000")
Question: How much cash must be contributed by each of the partners after they contributed their properties? PLEASE PROVIDE THE ANSWERS WITH SOLUTION IN A GOOD ACCOUNTING FORM.
Required Information [The following information applies to the questions displayed below.] The Fleld, Brown & Snow partnership was begun with Investments by the partners as follows: Field, $131,700; Brown, $165,600; and Snow. $153,700. The partners decide to liquidate, sharlng all losses equally. On May 31, after all assets were sold and all creditors were pald, only $43,900 in partnership cash remalned. 1. Compute the capital account balance of each partner after the liquldation of assets and payment of creditors. (Losses and negative capital balances, If any. should be entered with a minus sign.) Field Brown Snow Total Initial investments Allocation of gains (losses) Capital balances
P, Q and R are partners sharing profit and losses in the ratio of 5 : 3: 2. Q retires and the goodwill of the firm is valued at $ 9,000. Assuming that P and R will share the future profits in the ratio of 4 : 1. Pass the necessary journal entries in each of the following alternative cases: (a) When no goodwill account appears in the books. (b) When goodwill account appears at $ 30,000 in the Balance Sheet.
A and B are partners sharing profits and losses in the ratio of 5:3. C is admitted as a new partner for 1/5th share. C brings RO. 50,000 as his capital but he is not able to bring his share of Goodwill in cash. Total Goodwill of the firm is RO. 60,000. Pass necessary journal entries when in the books of A and B: (a) No Goodwill already appears . (b) Goodwill already appears at RO. 24,000.
1. Jag, Lee and Bench are partners having the following capital balances of P11,200, P13,000 and P5,800 respectively. Profits and losses are shared 4:2:1. How much is the loss absorption capacity of Lee?Required to answer. Single choice. a. P13,000 b. P45,500 c. P26,000 d. cannot be determined 2. Lebron and Wade, partners who share profits and losses equally decided to liquidate their partnership by installment. The statement of financial position showed Cash – P 35,000; P Liabilities – P 20,000; Lebron, Capital – P71,000; and Wade, Capital – P 54,000. Liquidation expenses amounted to P 10,000. How much cash can be distributed safely toeach partner at this point? a. Lebron-P3,000; Wade- P0 b. Lebron-P5,000; Wade-P500 c. Lebron-P5,000; Wade-0 d. Lebron- P5,000; Wade- P1,0003. On December 31, 2020 and 2019, Bucks Corporation had 105,000 Ordinary Shares issued, 5,000 shares in the treasury, 10,000 shares subscribed and 10,000 5% Preference Shares, cumulative issued, P 100…
Hewitt and Patel are partners, sharing gains and losses equally. They decide to terminate their partnership. Prior to realization, their capital balances are $6,000 and $4,000, respectively. After all noncash assets are sold and all liabilities are paid, there is a cash balance of $8,000. Question Content Area a. What is the amount of a gain or loss on realization? $fill in the blank a082cef9b012fe9_2 Question Content Area b. How should the gain or loss be divided between Hewitt and Patel? Hewitt $fill in the blank fe57f5f50043050_2 Patel $fill in the blank fe57f5f50043050_4 Question Content Area c. How should the cash be divided between Hewitt and Patel? If an amount is zero, enter "0". blankHewitt and PatelDistribution of Cash Hewitt Patel Capital balances before realization $fill in the blank 2e3dfe08df82014_1 $fill in the blank 2e3dfe08df82014_2 Division of gain or loss on realization fill in the blank…
A, B and C are partners sharing profit in the ratio of 5:6:4 . A new partner D is to be admitted after which the future profit will be shares in the ratio 5:3:3:3. Goodwill is valued at $30000. Prepare the journal entries regarding: Creation of goodwill Elimination of good will Contribution made by existing partners to the retired partner.

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