Ali, Basel and Ziad are sharing income and loss in a 4:3:2 ratio respectively and decided to liquidate their partnership. Prior to the final distribution of cashto the partners, Ali has a capital balance of $(10,000), Basel has a capital balance of $24,000, and Ziad has a capital balance of $36,000. Also, cashbalance is $50,000. Ali is NOT able to pay the amount he owes the partnership.Which of the following two journal entries are right to record this liquidation case?OA. Basel Capital6,000Ziad Capital4,000Ali Capital10,000Basel capital32,00018,000Ziad capitalCash50,000 CashOB. Basel CapitalZiad CapitalBasel capitalZiad capitalCashOC. Basel CapitalZiad CapitalBasel capitalZiad capitalCashO D. Basel CapitalZiad CapitalBasel capitalZiad capitalCashAli CapitalAli CapitalAli Capital6,0004,00018,00032,0005,0005,00019,00031,0004,0006,00018,00032,00050,00010,00050,00010,00050,00010,00050,000

Income and loss in a 4:3:2 ratio respectively and decided to liquidate their partnership. Prior to the final distribution of cas to the partners, Ali has a capital balance of $(10,000), Basel has a capital balance of $24,000, and Ziad has a capital balance of $36,000. Also, cash balance is $50,000. All is NOT able to pay the amount he owes the partnership. Which of the following two journal entries are right to record this liquidation case? 6,000 OA. Basel Capital Ziad Capital 4,000 Ali Capital 10,000

Income and loss in a 4:3:2 ratio respectively and decided to liquidate their partnership. Prior to the final distribution of cas to the partners, Ali has a capital balance of $(10,000), Basel has a capital balance of $24,000, and Ziad has a capital balance of $36,000. Also, cash balance is $50,000. All is NOT able to pay the amount he owes the partnership. Which of the following two journal entries are right to record this liquidation case? 6,000 OA. Basel Capital Ziad Capital 4,000 Ali Capital 10,000

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter11: Partnerships: Distributions, Transfer Of Interests, And Terminations

Section: Chapter Questions

Problem 47P

See similar textbooks

Similar questions

All, Basel and Ziad are sharing income and loss in a 4:3:2 ratio respectively and decided to liquidate their partnership. Prior to the final distribution of cash to the partners, All has a capital balance of $(20,000), Basel has a capital balance of $48.000, and Ziad has a capital balance of $72,000. Also, cash balance is $100,000. All is NOT able to pay the amount he owes the partnership. Which of the following two journal entries are right to record this liquidation case? OA Basel Capital Ziad Capital 10,000 15,000 All Capital 20,000 Basel capital 38,000 62,000 Ziad capital Cash 100,000 OB Basel Capital 8,000 Ziad Capital 12,000 20,000 36,000 Basel capital Ziad capital Cash 64,000 100,000 OC. Basel Capital 12,000 Ziad Capital 8,000 20,000 36,000 Basel capital Ziad capital 64,000 Cash 100,000 All Capital All Capital SAMU
A Base and Zad are sharing income and loss in a 4:3:2 ratio respectively and decided to liquidate their partnership. Prior to the final distribution of cash to the partners. All has a capital balance of $(10,000), Basel has a capital balance of $24,000, and Ziad has a capital balance of $36,000. Also, cash balance is $50,000. All is NOT able to pay the amount he owes the partnership ?Which of the following two journal entries are right to record this liquidation case 6,000 4,000 Basel Capital A O Ziad Capital 10,000 All Capital 18,000 Basel capital 32,000 Ziad capital Cash 50,000 4,000 Basel Capital B O Ziad Capital 6,000 10,000 All Capital 18,000 32,000 Basel capital Ziad capital Cash 50,000 Basel Capital .CO Ziad Capital All Capital Basel capital Ziad capital Cash Basel Capital .D O Ziad Capital Ali Capital Basel capital Ziad capital Cash 50,000 10,000 50,000 10,000 50,000 السؤال 6 6,000 4,000 32,000 18,000 5,000 5,000 19,000 31,000
A Base and Zad are sharing income and loss in a 4:3:2 ratio respectively and decided to liquidate their partnership. Prior to the final distribution of cash to the partners. All has a capital balance of $(10,000), Basel has a capital balance of $24,000, and Ziad has a capital balance of $36,000. Also, cash balance is $50,000. All is NOT able to pay the amount he owes the partnership ?Which of the following two journal entries are right to record this liquidation case 6,000 4,000 Basel Capital A O Ziad Capital All Capital 10,000 18,000 Basel capital 32,000 Ziad capital Cash 50,000 4,000 Basel Capital BO Ziad Capital 6,000 10,000 All Capital 18,000 Basel capital 32,000 Ziad capital 50,000 Cash Basel Capital CO Zlad Capital All Capital Basel capital Ziad capital Cash Basel Capital .D O Ziad Capital Ali Capital Basel capital Ziad capital Cash 50,000 10,000 50,000 10,000 50,000 السؤال 6 6,000 4,000 32,000 18,000 5,000 5,000 19,000 31,000
Matt is withdrawing from the partnership of Matt, Lee, and Karla. The partners share profits and losses in a 1:2:3 ratio for Matt, Lee, and Karla, respectively. After the revalua- tion of assets, Matt's capital balance is $50,000, and the other partners agree to pay him $60,000. Journalize the payment to Matt and his withdrawal from the partnership.
The partnership of Anderson, Berry, Hammond, and Winwood is being liquidated. It currently holds cash of $20,000 but no other assets. Liabilities amount to $30,000. The capital balances are If both Hammond and Winwood are personally insolvent, how much money must Berry contribute to this partnership? If only Winwood is personally insolvent, how much money must Hammond contribute to the partnership? How will these funds be disbursed? If only Hammond is personally insolvent, how much money should Anderson receive from the liquidation?
Hill, Williams, and Kelce are partners and share income in a 1:2:2 ratio (in ratio form: Hill, 1/5; Williams, 2/5; Kelce, 2/5). The partnership's capital balances are as follows: Hill, $21,000, Williams $33,000 and Kelce $60,000. Hill decides to withdraw from the partnership and agrees to take $15,000 cash in payment of his capital balance. The journal entry to record the withdrawal contains a: Multiple Choice Debit to Cash for $15,000. Credit to Hill, Capital for $21,000. Debit to Hill, Withdrawals for $21,000. Credit to Capital, Kelce for $3,000. Credit to Cash for $21,000.
Hewitt and Patel are partners, sharing gains and losses equally. They decide to terminate their partnership. Prior to realization, their capital balances are $28,000 and $18,000, respectively. After all noncash assets are sold and all liabilities are paid, there is a cash balance of $35,000. a. What is the amount of a gain or loss on realization? b. How should the gain or loss be divided between Hewitt and Patel? Hewitt Patel
Prior to liquidating their partnership, Sam and Brian had capital accounts of $60,000 and $240,000, respectively. The partnership assets were sold for $120,000. The partnership had no liabilities. Sam and Brian share income and losses equally Determine the amount of Sam’s deficiency. Determine the amount distributed to Brian, assuming Sam is unable to satisfy the deficiency. Show your work:
David Oliver and Umar Ansari, with capital balances of $28,000 and $35,000, respectively,decide to liquidate their partnership. After selling the noncash assets and paying the liabilities, there is $67,000 of cash remaining. If the partners share income and losses equally, how should the cash be distributed?
Peters, Chong, and Aaron are dissolving their partnership. Therr partnership agreement allocates each partner an equal share of all Income and losses. The current period'sending capral account balances are Peters, $174,000, Chong, $162,000, and Aaron, $(66.000). After all assets are sold and liabilties are pald, there is $270,000 in cash to be distrbuted. Aaron Is unable to pay the deficiency, The Joumal entry to record the distribution should be: O Debit Cash $27o.ooo: credit Peters, capital $9o,ooo: credit Chong. Capital s9o.ooo. O Debit Peters, Capital $174.ooo: debit Chong, Capital $162,ooo: credit Cash $336,0oo. o Debit Cash $27o.ooo, debit Aaron, Capital $66,000, credit Peters, Capital $174,0oo, credit Chong, Capital $162,ooo. O Debit Peters, Capital $174, ooo; debit Chong, Capital $96,ooo: credit Cash $27o,ooo. O Debit Peters, Capital $141.ooo: debit Chong. Capital $129,000; credit Cash $27o,ooo
The partnership of Winn, Xie, Yang, and Zed has the following balance sheet: Zed is personally insolvent, and one of his creditors is considering suing the partnership for the $10,000 that is currently owed. The creditor realizes that this litigation could result in partnership liquidation and does not wish to force such an extreme action unless Zed is reasonably sure of obtaining at least $10,000 from the liquidation. Determine the amount for which the partnership must sell the other assets to ensure that Zed receives $10,000 from the liquidation. Liquidation expenses are expected to be $30,000.
Hewitt and Patel are partners, sharing gains and losses equally. They decide to terminate their partnership. Prior to realization, their capital balances are $28,000 and $18,000, respectively. After all noncash assets are sold and all Iliabilities are paid, there is a cash balance of $35,000.