In liquidation, balances prior to the distribution of cash to the partners are: Cash $755000; James, Capital $410000; Laney, Capital $380000, and Howell, Capital $35000 deficiency. The income ratio 6:2:2, respectively. How much cash should be distributed to Laney if Howell does not pay his deficiency? $357000 O $346250 O $371250 $380000

In liquidation, balances prior to the distribution of cash to the partners are: Cash $755000; James, Capital $410000; Laney, Capital $380000, and Howell, Capital $35000 deficiency. The income ratio 6:2:2, respectively. How much cash should be distributed to Laney if Howell does not pay his deficiency? $357000 O $346250 O $371250 $380000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Denger

A: The objective of the question is to determine the amount of cash that should be distributed to…

Q: The partners of Grafton Company have decided to liquidate their business. Noncash assets were sold…

A: Partnership liquidation is the process of ending a partnership and distributing its assets.During…

Q: Harry, Tony, and Liza run a partnership firm and share in the profits 1:3:2, respectively. In the…

A: The partnership comes into existence when two or more persons agree to do the business and further…

Q: The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to…

A: Pre distribution schedule-Pre-distribution is the idea that the state should try to stop…

Q: Non-Cash Assets recorded in the accounting records as $30 sold for $50 during the liquidation…

A: Given that: Non-Cash Assets recorded in the accounting records as $30 sold for $50 during the…

Q: Delow is the balance sheet of Gold Ace Company immediately liquidation of the partnership:…

A: Statement of liquidation shows the net cash available to pay the creditors and the partners.

Q: In liquidation, balances prior to the distribution of cash to the partners are: Cash $239000; Mark,…

A: A partnership is a contract between two or more persons to form a business and share profits and…

Q: es $ 61,000 329,000 The Drysdale, Koufax, and Marichal partnership has the following balance sheet…

A: Step 1:Step 2:Step 3:

Q: Harry, Tony, and Liza run a partnership firm and share in the profits 1:3:2, respectively. In the…

A: The partnership firm is when two or more partners makes an agreement to start a firm together with…

Q: 3. Brielle received $30,000 in cash and an automobile with an adjusted basis and market value of…

A: Liquidation of Partner:A partnership liquidation entails the gathering of the business's remaining…

Q: Required: A. Prepare the journal entries necessary to record the distribution of the available cash.…

A: Cash balance = $ 240,000Allocate cash to partners based on profit sharing ratioPartnerAvailable…

Q: Distribution of Cash Upon Liquidation Hewitt and Patel are partners, sharing gains and losses…

A: a. Calculate the gain or loss on realization.

Q: The partnership of Kylie, Bamboo and Tank is being liquidated. The summarized balance sheet below…

A: Partnership means where two or more person comes together to form the business and share profit and…

Question

In liquidation, balances prior to the distribution of cash to the partners are: Cash $755000; James,
Capital $410000; Laney, Capital $380000, and Howell, Capital $35000 deficiency. The income ratio is
6:2:2, respectively. How much cash should be distributed to Laney if Howell does not pay his
deficiency?
O $357000
O $346250
O $371250
O $380000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction

VIEW

Step 2: Solution

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

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

The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: Cash Noncash assets Req A1 a-1. Determine the maximum loss that can be absorbed in Step 1. Then, assuming that this loss has been incurred, determine the next maximum loss that can be absorbed in Step 2. a-2. Liquidation expenses are estimated to be $19,000. Prepare a predistribution schedule to guide the distribution of cash. Further, modify the tags in explanation as well. b. Assume that assets costing $78,000 are sold for $62,000. How is the available cash to be divided? Complete this question by entering your answers in the tabs below. Step 1 $ 40,000 224,000 Partner Capital Balance Drysdale Koufax Marichal Determine the maximum loss that can be absorbed in Step 1. Then, assuming that this loss has been incurred, determine the next maximum loss that can be absorbed in Step 2. Step 2 Liabilities Drysdale, loan Drysdale, capital (50%) Koufax, capital (30%) Marichal,…
The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: Cash $ 37,000 Liabilities $ 49,000 Noncash assets 209,000 Drysdale, loan 12,500 Drysdale, capital (50%) 71,500 Koufax, capital (30%) 61,500 Marichal, capital (20%) 51,500 a-1. Determine the maximum loss that can be absorbed in Step 1. Then, assuming that this loss has been incurred, determine the next maximum loss that can be absorbed in Step 2. a-2. Liquidation expenses are estimated to be $16,000. Prepare a predistribution schedule to guide the distribution of cash. Further, modify the tags in explanation as well. b. Assume that assets costing $75,000 are sold for $60,500. How is the available cash to be divided?
The partnership of Ramos, Rios, Safar, and Wong is being liquidated. It currently holds cash of $20,900 but no other assets. Liabilities amount to $29,300. The capital balances are Ramos (30% of profits and losses) Rios (30%) Safar (20%) Wong (20%) Required: $ 26,600 27,000 (22,000) (40,000) (deficit) (deficit) a. If both Safar and Wong are personally insolvent, how much money must Rios contribute to the partnership? b-1. If only Wong is personally insolvent, how much money must Safar contribute to the partnership? b-2. If only Wong is personally insolvent, how will Safar's contribution (funds) be distributed? c. If only Safar is personally insolvent, how much money should Ramos receive from the liquidation? Note: For all requirements, do not round intermediate calculations. Round your answers to the nearest whole dollar amount. a. Rio's contribution b-1 Safar contribution b-2. Creditors b-2. Ramos b-2. Rios C. Ramos should receive
Kk51.