Distribution of Cash Upon Liquidation Bray, Lincoln, and Mapes arranged to import and sell orchid corsages for a university dance. They agreed to share equally the net income or net loss of the venture. Bray and Lincoln advanced $810 and $1,230 of their own respective funds to pay for advertising and other expenses. After collecting for all sales and paying creditors, the partnership has $3,300 in cash. Use the minus sign to indicate any deficiency for the capital accounts. For those boxes in which you must enter subtractive or negative numbers use a minus sign. a. How much net income was earned from the venture? 1,260 V b. How should the money be distributed? Bray Lincoln Марes Total Capital balances and cash distribution $ 1,230 v $ 1,650 v $ 420 v 3,300 c. Assume that the partnership has only $1,740 instead of $3,300. Do any of the three partners have a capital deficiency? Yes If so, how much? -300 x Bray Lincoln Марes Total Capital balances 710 1,130 -100 V 1,740

Distribution of Cash Upon Liquidation Bray, Lincoln, and Mapes arranged to import and sell orchid corsages for a university dance. They agreed to share equally the net income or net loss of the venture. Bray and Lincoln advanced $810 and $1,230 of their own respective funds to pay for advertising and other expenses. After collecting for all sales and paying creditors, the partnership has $3,300 in cash. Use the minus sign to indicate any deficiency for the capital accounts. For those boxes in which you must enter subtractive or negative numbers use a minus sign. a. How much net income was earned from the venture? 1,260 V b. How should the money be distributed? Bray Lincoln Марes Total Capital balances and cash distribution $ 1,230 v $ 1,650 v $ 420 v 3,300 c. Assume that the partnership has only $1,740 instead of $3,300. Do any of the three partners have a capital deficiency? Yes If so, how much? -300 x Bray Lincoln Марes Total Capital balances 710 1,130 -100 V 1,740

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

10 of estion L, M, and N are in the process of liquidating their partnership. Since it may take several months to convert the other assets into cash, the partners agree to distribute all available cash immediately, except for $12,000 which is set aside for contingent expenses. The balance sheet 25,000 and residual profit and loss sharing percentages are as follows: Cash 500,000 Accounts payable Other assets 225,000 L, capital (20%) 168,000 270,000 N, capital (50%) M, capital (30%) 262,000 Using a safe payment schedule, how much cash should M receive in the first distribution?
How much cash must be contributed by each of the partners after they contributed their properties
The post closing account balances on December 31, 2011 for the partnership of EGD are as follows: Cash P 390,000 Inventory Accounts Payable E, Capital G, Capital D, Capital 160,000 50,000 150,000 80,000 270,000 Due to unsatisfactory results of operations, the partners decided to liquidate the business. During January, some of the inventory is sold for P100,000. On January 31, 2012 all available cash is distributed. It is doubtful if the remaining inventory items can be sold. How much should each partner receive as settlement?
Distribution of Cash Upon Liquidation David Oliver and Umar Ansari, with capital balances of $44,000 and $59,000, respectively, decide to liquidate their partnership. After selling the noncash assets and paying the liabilities, there is $129,000 of cash remaining. If the partners share income and losses equally, how should the cash be distributed?
First Next Next $ Cash over $ Cash Distribution Plan: 0 to creditors 0 to Riley 0 to Whitehead and Riley in a 5:2 ratio 0 to Whitehead, Ellis and Riley in a 5:3:2 ratio <
Lump-Sum Liquidation Three university students, Cho, Kenney, and Martinez, operated a successful business, renting furniture and appliances to students residing in dormitories and off-campus apartments. The three are now graduating and wish to sell the business before beginning their respective careers. They shared profits in a 7.5.4 ratio The partnership's current balance sheet is as follows: Cash $6,000 Accounts payable $60,000 10,000 25,000 Loan payable-Kenney 15,000 Capital—Cho 27,000 28,000 140,000 Capital-Kenney Capital-Martinez 61,000 Total assets $186,000 Total liabilities and capital $186,000 Another student group, organized as a corporation, wants to buy the business. Their offer of $105,000 for the equipment and $12,000 for the receivables is accepted. After receipt of the $117,000, the liabilities are paid and the partnership is liquidated. Required How much does each partner receive? Cash Distribution Cho $ 9,000 Kenney $ 23,000 Martinez $ 49,000 Receivables Loan…
The partnership of Kylie, Bamboo and Tank is being liquidated. The summarized balance sheet below depicts their financial position before liquidation: Cash Loans to Tank Other non-cash assets P 30,000 70,000 600,000 The other non-cash assets were sold at P400,000. 1. The excess cash distributed to Kylie is P40,000 A. True B. False Accounts payables P Kylie, loan Kylie, capital (40%) Bambo, capital (20%) Tank, capital (40%) 2. The excess cash distributed to Tank is P110,000 A. True B. False 3. The ending balance of non-cash assets after liquidation is P200,000 A. True B. False 280,000 30,000 90,000 150,000 150,000
Do not give answer in image
Distribution of Cash Upon Liquidation Bray, Lincoln, and Mapes arranged to import and sell orchid corsages for a university dance. They agreed to share equally the net income or net loss of the venture. Bray and Lincoln advanced $780 and $1,200 of their own respective funds to pay for advertising and other expenses. After collecting for all sales and paying creditors, the partnership has $3,210 in cash. Use the minus sign to indicate any deficiency for the capital accounts. a. How much net income was earned from the venture?$fill in the blank 1 b. How should the $3,210 be distributed? Bray Lincoln Mapes Total Capital balances and cash distribution $fill in the blank 2 $fill in the blank 3 $fill in the blank 4 $fill in the blank 5 c. Assume that the partnership has only $1,710 instead of $3,210. Complete the following table to determine if any of the three partners have a capital deficiency? Bray Lincoln Mapes Total Capital balances $fill in the blank 6 $fill in the…
Distribution of Cash Upon Liquidation Bray, Lincoln, and Mapes arranged to import and sell orchid corsages for a university dance. They agreed to share equally the net income or net loss of the venture. Bray and Lincoln advanced $330 and $510 of their own respective funds to pay for advertising and other expenses. After collecting for all sales and paying creditors, the partnership has $1,350 in cash. Use the minus sign to indicate any deficiency for the capital accounts. a. How much net income was earned from the venture?$fill in the blank 1 b. How should the $1,350 be distributed? Bray Lincoln Mapes Total Capital balances and cash distribution $fill in the blank 2 $fill in the blank 3 $fill in the blank 4 $fill in the blank 5 c. Assume that the partnership has only $720 instead of $1,350. Complete the following table to determine if any of the three partners have a capital deficiency? Bray Lincoln Mapes Total Capital balances $fill in the blank 6 $fill in the…
Problem #12 Final Cash Distribution to Partners The partnership of Sarabia, Selisana and Gevera is about to be liquidated. All the assets have been sold for cash and the creditors have been fully paid. The capital accounts of the partners have the following balances at the date of liquidation: P600,000 credit 240,000 debit 360,000 credit Sarabia Selisana Gevera The three partners share profits and losses equally. There remains P720,000 cash for distribution to the partners. Required: Determine the manner of distribution of the remaining P720,000 under the following independent assumptions: 1. Selisana is personally insolvent. He has no personal assets. 2. Selisana is personally solvent and is willing to contribute additional funds into the partnership to cover his deficit. 3. Selisana is willing to make additional contributions but his personal assets are not sufficient to accommodate the deficit in his capital account. Only 60% of the deficiency can be covered.
Use good accounting form in solution