Homework Help is Here – Start Your Trial Now!
Business
Accounting
First Next Next Cash over $ $ $ tA 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 + OO

First Next Next Cash over $ $ $ tA 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 + OO

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 9MCQ: Refer to the information for Cornett Company above. What amount should Cornett report on its...
See similar textbooks
icon
Related questions
Question
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 <
Transcribed Image Text: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 <
Cash Distribution Plan At the time they decided to liquidate their partnership, Whitehead, Ellis and Riley had capital balances of $75,000, $60,000 and $100,000, respectively. Liabilities were $48,000 and the balance sheet showed a note receivable from Ellis in the amount of $40,000. The partners share income in a 5:3:2 ratio. Prepare a schedule showing how cash is to be distributed as it becomes available during the liquidation process. Remember to use negative signs with answers that reduce the capital balances. Whitehead Ellis 60,000 $ (40,000) 20,000 $ 60,000 $ 0 60,000 $ 0 0 $ Capital balances per books Deduct loan receivable Pre-liquidation balances Standardized capital balances (a) Equalize Whitehead and Riley (b) Equalize Whitehead, Ellis & Riley $ $ $ $ $ Convert equalization adjustments - (a) $ Convert equalization adjustments - (b) $ 75,000 $ 0 75,000 $ 150,000 $ 0 150,000 $ 0 0 $ 0 $ 0 $ 0 $ 0 $ Riley 100,000 0 100,000 500,000 0 OOO OO 0 0 0 0
Transcribed Image Text:Cash Distribution Plan At the time they decided to liquidate their partnership, Whitehead, Ellis and Riley had capital balances of $75,000, $60,000 and $100,000, respectively. Liabilities were $48,000 and the balance sheet showed a note receivable from Ellis in the amount of $40,000. The partners share income in a 5:3:2 ratio. Prepare a schedule showing how cash is to be distributed as it becomes available during the liquidation process. Remember to use negative signs with answers that reduce the capital balances. Whitehead Ellis 60,000 $ (40,000) 20,000 $ 60,000 $ 0 60,000 $ 0 0 $ Capital balances per books Deduct loan receivable Pre-liquidation balances Standardized capital balances (a) Equalize Whitehead and Riley (b) Equalize Whitehead, Ellis & Riley $ $ $ $ $ Convert equalization adjustments - (a) $ Convert equalization adjustments - (b) $ 75,000 $ 0 75,000 $ 150,000 $ 0 150,000 $ 0 0 $ 0 $ 0 $ 0 $ 0 $ Riley 100,000 0 100,000 500,000 0 OOO OO 0 0 0 0
Expert Solution
Notes

First creditors are paid as they are the outsider's liability.

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Presentation of Financial Statements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS