Finn and Hart form a partnership, contributing $44,000 and $66,000, respectively. Determine their shares of net income or net loss for each of the following independent situations: (Use a minus sign or parentheses when enter losses.) a (Click on the icon to view the independent situations.) Determine partners' shares of net income or net loss for situation a. Net income (loss) More info Finn Hart Total Situation a. a. Net loss is $130,000 and the partners have no written partnership agreement. b. Net income is $100,000 and the partnership agreement states that the partners share profits and losses on the basis of their capital balances. C. Net income is $120.000, The first $72,000 is shared on the basis of capital balances. The next $36,000 is based on partner service, with Finn receiving 40% and Hart 60%. The remainder is shared equally. Print Done

Finn and Hart form a partnership, contributing $44,000 and $66,000, respectively. Determine their shares of net income or net loss for each of the following independent situations: (Use a minus sign or parentheses when enter losses.) a (Click on the icon to view the independent situations.) Determine partners' shares of net income or net loss for situation a. Net income (loss) More info Finn Hart Total Situation a. a. Net loss is $130,000 and the partners have no written partnership agreement. b. Net income is $100,000 and the partnership agreement states that the partners share profits and losses on the basis of their capital balances. C. Net income is $120.000, The first $72,000 is shared on the basis of capital balances. The next $36,000 is based on partner service, with Finn receiving 40% and Hart 60%. The remainder is shared equally. Print Done

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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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…
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Julie, Liza and Emma are partners who share profits and losses in the ratio of 2:3:5. The partners have decided to liquidate the partnership.Their capital accounts show the following balances: Julie - P60,000 credit; Liza - P90,000 credit; Emma - P20,000 debit after the sale of non-cash assets and the payment of all liabilities. What is the amount of cash available for distribution: a.) P130,000 b.) P120,000 c.) P60,000 d.) P90,000 SHOW COMPLETE SOLUTION
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Adams, Peters, and Blake share profits and losses for their APB Partnership in a ratio of 2:3:5. When they decide to liquidate, the balance sheet is as follows: Assets Liabilities and Capital $ 49,000 Cash Adams, Loan Other Assets Total Assets 11,800 218,000 Liabilities Adams, Capital Peters, Capital Blake, Capital Total Liabilities and Equities $ 278,800 $ 45,500 64,900 88,500 79,900 $ 278,800 Liquidation expenses are expected to be negligible. No interest accrues on loans with partners after termination of the business. During the liquidation process for the APB Partnership, the following events occurred: 1. During the first month of liquidation, noncash assets with a book value of $89,500 were sold for $68,000, and $22,500 of the liabilities were paid. 2. During the second month, the remaining noncash assets were sold for $78,000. The loan receivable from Adams was collected, and the rest of the creditors were paid. 3. Cash is distributed to partners at the end of each month.…