Tik, Tak and Toe, who share profits and losses in the ratio of 4:4:2, respectively, decide to liquidatetheir partnership on December 31, 2019. The condensed statement of financial position ispresented below just prior to liquidation.3T PartnershipStatement of Financial PositionDecember 31, 2019ASSETSLIABILITIES AND EQUITYP 40,000P 224,00010,00016,000190,000120,000CashLiabilitiesOther Assets680,000Tak, LoanToe, LoanTik, CapitalTak, CapitalToe, Capital160,000P 720,000Total Liabilities and EquityP 720,000Total AssetsInstruction: Prepare a statement of Liquidation and the required journal entries for each of the followingcases and supporting schedule of cash distribution, if necessary assuming cash is immediatelydistributed to the proper parties. Assume also that the deficient partner/s will invest cash which is thendistributed as second payment to the proper parties.P 700,000500,000P 370,000340,000P 250,000180,000Case ACase CCase ECase BCase DCase F

Tik, Tak & Toe share profits in the ratio of 4:4:2 and have decided to liquidate the…

Instruction: Prepare a statement of Liquidation and the required journal entries for each of the following cases and supporting schedule of cash distribution, if necessary assuming cash is immediately distributed to the proper parties. Assume also that the deficient partner/s will invest cash which is then distributed as second payment to the proper parties. P 370,000 340,000 P 250,000 180,000 Case A P 700,000 Case C Case E Case B 500,000 Case F Case D

Instruction: Prepare a statement of Liquidation and the required journal entries for each of the following cases and supporting schedule of cash distribution, if necessary assuming cash is immediately distributed to the proper parties. Assume also that the deficient partner/s will invest cash which is then distributed as second payment to the proper parties. P 370,000 340,000 P 250,000 180,000 Case A P 700,000 Case C Case E Case B 500,000 Case F Case D

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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Distribution of Cash Upon Liquidation Bray, Lincoln, and Mapes arranged to import and sell orchid corsages for a university dance. They agreed to share equally the net income or net loss of the venture. Bray and Lincoln advanced $780 and $1,200 of their own respective funds to pay for advertising and other expenses. After collecting for all sales and paying creditors, the partnership has $3,210 in cash. Use the minus sign to indicate any deficiency for the capital accounts. a. How much net income was earned from the venture?$fill in the blank 1 b. How should the $3,210 be distributed? Bray Lincoln Mapes Total Capital balances and cash distribution $fill in the blank 2 $fill in the blank 3 $fill in the blank 4 $fill in the blank 5 c. Assume that the partnership has only $1,710 instead of $3,210. Complete the following table to determine if any of the three partners have a capital deficiency? Bray Lincoln Mapes Total Capital balances $fill in the blank 6 $fill in the…
Distribution of Cash Upon Liquidation Bray, Lincoln, and Mapes arranged to import and sell orchid corsages for a university dance. They agreed to share equally the net income or net loss of the venture. Bray and Lincoln advanced $330 and $510 of their own respective funds to pay for advertising and other expenses. After collecting for all sales and paying creditors, the partnership has $1,350 in cash. Use the minus sign to indicate any deficiency for the capital accounts. a. How much net income was earned from the venture?$fill in the blank 1 b. How should the $1,350 be distributed? Bray Lincoln Mapes Total Capital balances and cash distribution $fill in the blank 2 $fill in the blank 3 $fill in the blank 4 $fill in the blank 5 c. Assume that the partnership has only $720 instead of $1,350. Complete the following table to determine if any of the three partners have a capital deficiency? Bray Lincoln Mapes Total Capital balances $fill in the blank 6 $fill in the…
Ideu, the d. P3,200 b. Р3,920 C. P4,500 d. P17,800 42. liquidate. All assets of the partnership just prior to liquidation follows: were liquidated. The condemsed statement of financial position Assets Cash Other assets liabilities and capital P140, 000 10, 000 45, 000 105, 000 200, 000 P500,000 P100, 000 liabilities Matias, loan Matias, capital Pagayanon, capital Pescasiosa, capital Total 400, 000 Total P500, 000 Other assets were sold for P247, 500 realizing a loss of P152, 500. Parties agreed to fully terminate the partnership's business thus, necessitating distribution of cash to partners and in case of capital deficiency, contribution of additional cash. The three partners were all solvent and could answer any capital deficiency. Name the partner and give the corresponding additional cash he had to invest due to his net capital deficiency to finally settle to the liquidation of the partnership. Pagayanon, P44,000 b Pescasiosa, P30, 500 Matias, P16,000 Matias, P6,000 a C
Financial Accounting and Reporting Topic: Liquidation – Installment
Number 4, 5,6,7,8,9,10 please.
blanaces of accounts for M&M partnership are cash 34000 account payable (27000) loan to Matter (7000) Matter capital 8000 Mansour capital (8000) avaliable cash should distributed as follows after payment 25000 to account payables: ○ A. 7000 to Mansour O B. 7000$ for loan of Matter O c. $3500 each to Matter and Mansour OD. 1000 to Matter and 7000 to Mansour
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,…
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! Required information Problem 21-46 (LO 21-4) (Algo) [The following information applies to the questions displayed below.] The Taurin Partnership (a calendar-year-end entity) has the following assets as of December 31 of the current year: Cash Accounts receivable Inventory Tax Basis $ 46,440 15,480 82,800 FMV $ 46,440 30,960 122,520 Totals $ 144,720 $ 199,920 On December 31, Taurin distributes $15,480 of cash, $10,320 (FMV) of accounts receivable, and $40,840 (FMV) of inventory to Emma (a one-third partner) in termination of her partnership interest. Emma's basis in her partnership interest immediately prior to the distribution is $41,060. Problem 21-46 Part b (Algo) b. What is Emma's basis in the distributed assets? Note: Round your intermediate and final answers to the nearest whole dollar amount. > Answer is not complete. Cash Accounts receivable Inventory Basis $ 15,480
Problem #12 Final Cash Distribution to Partners The partnership of Sarabia, Selisana and Gevera is about to be liquidated. All the assets have been sold for cash and the creditors have been fully paid. The capital accounts of the partners have the following balances at the date of liquidation: P600,000 credit 240,000 debit 360,000 credit Sarabia Selisana Gevera The three partners share profits and losses equally. There remains P720,000 cash for distribution to the partners. Required: Determine the manner of distribution of the remaining P720,000 under the following independent assumptions: 1. Selisana is personally insolvent. He has no personal assets. 2. Selisana is personally solvent and is willing to contribute additional funds into the partnership to cover his deficit. 3. Selisana is willing to make additional contributions but his personal assets are not sufficient to accommodate the deficit in his capital account. Only 60% of the deficiency can be covered.
Vusi and Vuma are in partnership trading as VV Traders specialising in manufacturing protective wear related to COVID-19. The partners share profits equally. The following information pertains to the business activities of the partnership for the year ended 30 June 20.2: VV TRADERS EXTRACT OF FINANCIAL INFORMATION AS AT 30 JUNE 20.2 Note R Loan to Vusi Land and buildings (at cost) Machinery (at cost) Vehicles (at cost) Accumulated depreciation: Machinery Accumulated depreciation: Vehicles Allowance for credit losses Capital contribution: Vusi Capital contribution: Vuma Allowance for settlement discount granted Long-term loan Inventory Trade receivables control Trade payables control Bank Petty cash Current account: Vusi (1 July 20.1) Current account: Vuma (1 July 20.1) 92 650 462 330 160 690 Cell Styles 201 580 29 220 9 810 3 710 350 280 350 280 8 940 70 850 49 490 97 450 41 530 84 590 1 570 42 840 63 220 Profit before year-end adjustments 170 370 Additional information 1. The…
3. Cash Other assets P 28,000 265,000 P 48,000 95,000 80,000 70,000 P 293,000 Liabilities Alex, capital Jay, capital John, capital Total Total P293.000 partnership and liquidate by selling other assets in installments. P70,000 was realized on the se cash sale of other assets with a book value of P150.000, After settlement with creditors, all cash available was distributed to the partners. How much cash was received by John? P10,500 20,000 21,250 32,500 a Partners Arce, Bello and Cruz share profits and losses in the ration of 3:2:1. At the end of a very nprofitable year, they decided to liquidate the firm. The partner's capital account balances at thi me are as follows: P 24, 000; P 27,000; P 17,500. umulate to P32,000, inçluding a loan of P10.000 from