$ 60,000 $ 48,000 $ 63,000 A partnership held three assets: Cash Land Building and liabilities were $ 33,000 The partners decided to dissolve the business and anticipated that expenses required to liquidate their partnership would amount to $ 5,000 Capital balances were as follows: $ 36,000 King, capital Murphy, capital Madison, capital Pond, capital 48,000 30,000 24,000 The partners shared profits and losses 40:30:20:10 respectively. The cash on hand was used to pay the liabilities. Any remaining cash in excess of the amount needed for anticipated liquidation expenses was immediately distributed to the partners. a. What is the total amount of cash that was immediately available to be distributed to the partners? b. The cash (in item a.) was distributed to each partner in a single payment. Show the total payment amount to each partner. (Show the amount of the single check that was written to each partners.) Support your answer with a predistribution plan (or schedule).

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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$ 60,000
$ 48,000
$ 63,000
A partnership held three assets: Cash
Land
Building
and liabilities were
$ 33,000
The partners decided to dissolve the business and anticipated that expenses required to
liquidate their partnership would amount to
$ 5,000
Capital balances were as follows:
$ 36,000
48,000
30,000
24,000
King, capital
Murphy, capital
Madison, capital
Pond, capital
The partners shared profits and losses 40:30:20:10 respectively.
The cash on hand was used to pay the liabilities. Any remaining cash in excess of
the amount needed for anticipated liquidation expenses was immediately
distributed to the partners.
a.
What is the total amount of cash that was immediately available to be
distributed to the partners?
b.
The cash (in item a.) was distributed to each partner in a single payment.
Show the total payment amount to each partner. (Show the amount of the
single check that was written to each partners.) Support your answer with a
predistribution plan (or schedule).
Transcribed Image Text:$ 60,000 $ 48,000 $ 63,000 A partnership held three assets: Cash Land Building and liabilities were $ 33,000 The partners decided to dissolve the business and anticipated that expenses required to liquidate their partnership would amount to $ 5,000 Capital balances were as follows: $ 36,000 48,000 30,000 24,000 King, capital Murphy, capital Madison, capital Pond, capital The partners shared profits and losses 40:30:20:10 respectively. The cash on hand was used to pay the liabilities. Any remaining cash in excess of the amount needed for anticipated liquidation expenses was immediately distributed to the partners. a. What is the total amount of cash that was immediately available to be distributed to the partners? b. The cash (in item a.) was distributed to each partner in a single payment. Show the total payment amount to each partner. (Show the amount of the single check that was written to each partners.) Support your answer with a predistribution plan (or schedule).
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