Following is the statement of financial position of ABC Partnership before realization of assets on July 1, 2020: Cash 10,000 Liabilities. 28,000 Accounts receivable 50,000 A, Capital 45,000 Inventory 30,000 B, Capital 27,000 Equipment 60,000 C, Capital 50,000 Total 150,000 Total 150,000 The partners share income 30:30:40, respectively. On July 2, the partnership liquidated, 50% of the receivables are collected and that inventory is fully written-off. Equipment is sold for 55.000. Determine payment to partners
Following is the statement of financial position of ABC Partnership before realization of assets on July 1, 2020: Cash 10,000 Liabilities. 28,000 Accounts receivable 50,000 A, Capital 45,000 Inventory 30,000 B, Capital 27,000 Equipment 60,000 C, Capital 50,000 Total 150,000 Total 150,000 The partners share income 30:30:40, respectively. On July 2, the partnership liquidated, 50% of the receivables are collected and that inventory is fully written-off. Equipment is sold for 55.000. Determine payment to partners
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Following is the statement of financial position of ABC Partnership before realization of assets on July 1, 2020:
Cash
10,000
Liabilities.
28,000
Accounts
receivable
50,000
A, Capital
45,000
Inventory
30,000
B, Capital
27,000
Equipment
60,000
C, Capital
50,000
Total
150,000
Total
150,000
The partners share income 30:30:40, respectively. On July 2, the partnership liquidated, 50% of the receivables are collected and that inventory is fully written-off. Equipment is sold for 55.000.
Determine payment to partners
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