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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?

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
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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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
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