how to come up with the beginning balances in each month? Why is it 5k in January, 2k in Feb, 1k in March and 2.5k in April?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

how to come up with the beginning balances in each month? Why is it 5k in January, 2k in Feb, 1k in March and 2.5k in April?

(With Full payment of liabilities)
PROBLEM B: ABY, BEA and CLARA are partners who share profits and losses in
ratio of 5:2:3, respectivelý. On January 1, 2017, they decided to liquidate
partnership and the statement of financial position was prepared as follows:
ASSETS
LIABILITIES & CAPITAL
Cash
5,000
Liabilities
6,000
7,000
BEA, Loan
CLARA ,Loan
Non Cash Assets
50,000
2,500
ABY ,Capital
17,450
12,550
BEAА, Сapital
CLARA, Capital
Total Liabilities & Capital
9,500
Total Assets
55,000
55,000
The following transactions occurred as a result of the liquidation process:
Book Value
Proceeds
Payment of
Payment to
Cash
of Assets Sold
Liquidation Expenses Creditors
Withheld
January
12,000
10,500
500
6,000
2,000
February
7,000
6,000
750
1,000
March
15,000
10,000
1,000
2,500
April
2,000
5,000
5,000
0
9. How much total cash should the partnership distribute in order to app
the profit or loss ratio of all partners in distribution?
А. Р11,550
В. Р14,100
С. Р 20,500
D. P 25,200
10. Using Cash Priority Program (CPP), How much is the amount to
received by ABY; BEA and CLARA for the month of January?
A. PO; 3,500; 3,500
В. Р3,500%;B 1,400; 2,100
C. PO; 7,000, 0
D. P7,000; 3,500; 2,100
Transcribed Image Text:(With Full payment of liabilities) PROBLEM B: ABY, BEA and CLARA are partners who share profits and losses in ratio of 5:2:3, respectivelý. On January 1, 2017, they decided to liquidate partnership and the statement of financial position was prepared as follows: ASSETS LIABILITIES & CAPITAL Cash 5,000 Liabilities 6,000 7,000 BEA, Loan CLARA ,Loan Non Cash Assets 50,000 2,500 ABY ,Capital 17,450 12,550 BEAА, Сapital CLARA, Capital Total Liabilities & Capital 9,500 Total Assets 55,000 55,000 The following transactions occurred as a result of the liquidation process: Book Value Proceeds Payment of Payment to Cash of Assets Sold Liquidation Expenses Creditors Withheld January 12,000 10,500 500 6,000 2,000 February 7,000 6,000 750 1,000 March 15,000 10,000 1,000 2,500 April 2,000 5,000 5,000 0 9. How much total cash should the partnership distribute in order to app the profit or loss ratio of all partners in distribution? А. Р11,550 В. Р14,100 С. Р 20,500 D. P 25,200 10. Using Cash Priority Program (CPP), How much is the amount to received by ABY; BEA and CLARA for the month of January? A. PO; 3,500; 3,500 В. Р3,500%;B 1,400; 2,100 C. PO; 7,000, 0 D. P7,000; 3,500; 2,100
D.
Suggested Solution: (9.B; 10.C; 11.D; 12.B; 13.C)
JANUARY
FEBRUARY
MARCH
APRIL
Beg. Cash
5000.00
2000.00
1000.00
2500.00
Proceeds
10500.00
6000.00
10000.00
5000.00
(Liabilities)
(6000.00)
0.00
0.00
0.00
(Liq. exp)
(500.00)
(2000.00)
(750.00)
(1000.00)
5000.00
(Cash WH)
(1000.00)
(2500.00)
0.00
CAFD
7,000.00
6,250.00
7,500.00
2,500.00
Transcribed Image Text:D. Suggested Solution: (9.B; 10.C; 11.D; 12.B; 13.C) JANUARY FEBRUARY MARCH APRIL Beg. Cash 5000.00 2000.00 1000.00 2500.00 Proceeds 10500.00 6000.00 10000.00 5000.00 (Liabilities) (6000.00) 0.00 0.00 0.00 (Liq. exp) (500.00) (2000.00) (750.00) (1000.00) 5000.00 (Cash WH) (1000.00) (2500.00) 0.00 CAFD 7,000.00 6,250.00 7,500.00 2,500.00
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Cost of Credit
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
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education