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: $ 62,000 27.600 45,000 20,600 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 * Answer is not complete. Chen Korhonen Lebuca Swid 62,000 $ $ 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)
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: $ 62,000 27.600 45,000 20,600 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 * Answer is not complete. Chen Korhonen Lebuca Swid 62,000 $ $ 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)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question

Transcribed Image Text: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:
$ 62,000
27.600
45,000
20,600
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
* Answer is not complete.
Chen
Korhonen
Lebuca
Swid
62,000 $
$ 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)
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