Jacob, Santos and Hervas, partners, share net income and losses in the ratio of 5:3:2. Thepartners decided to liquidate the partnership. Their Statement of Financial Position follows:AssetsLiabilities and CapitalCashP 40,000P 60,000Liabilities8,00040,00072,00070,000Other assets 210,000Jacob, loanJacob, capitalSantos, capitalHervas, capitalTotal Assets P250,000TotalP250,000The partnership is to be liquidated by installment. The first sale of non-cash assets with acarrying amount of P120,000 realized P90,000. Liquidation expenses paid amounted toP2,000. How much cash should be distributed to Santos?

Given information, Jacob, capital =40,000 Santos capital =72,000 Hervas, capital = 70,000…

Answered: Jacob, Santos and Hervas, partners,…

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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Aloha, Brooke and Cole are partners who share profits in the ratio 35.35.30 Capital balance of the partners are P200,000, P250,000 and P225,000 respectively. The partnership decided to dissolve the partnership and liquidate their assets. Assuming Cash Available for distribution amounted to P200,000 the partners Aloha, Brooke and Cole will received the following:
Antonio and Barbara are partners who share income in the ratio of 1.2 and have capital balances of $40,000 and $70,000, respectively, at the time they decide to terminate the partnership. After all noncash assets are sold and all liabilities are paid, there is a cash balance of $80.000 What amount of loss on realization should be allocated to Barbara? a. $30.000 O b. sso 000 C. S10,000 d. s20.000-
The capital balances and the income and loss sharing ratio of the partners May, Jun, and Julie are as follows: Capital P/L Ratio May P285,000 50% Jun 145,000 25% Julie 134,000 25% The partnership has been successful, and the partners have decided to invite April to join the partnership. April will purchase one-fifth of the capital interests of May and Jun after recognizing that P8,000 worth of accounts receivable of the partnership is worthless and cannot be collected anymore. How much is the total amount of cash paid by April to partners May and Jun?
2) After the realization of non-cash assets, the following account balances appeared in the genera ledger of the partnership of See, Chap, and Pooh. Cash P 10,000 Liabilities 30,000 Pooh,Loan 5,000 See,Capital 15,000 Chap,Capital 10,000 Pooh,Capital 10,000 Profits are shared 2:4:4 for See, Chapand Pooh, respectively. Pooh is insolvent. Q2. How much did See receive in the liquidation? a. 0 b. 3,000 c. 5,000 d. 15,000
Hewitt and Patel are partners, sharing gains and losses equally. They decide to terminate their partnership. Prior to realization, their capital balances are $6,000 and $4,000, respectively. After all noncash assets are sold and all liabilities are paid, there is a cash balance of $8,000. Question Content Area a. What is the amount of a gain or loss on realization? $fill in the blank a082cef9b012fe9_2 Question Content Area b. How should the gain or loss be divided between Hewitt and Patel? Hewitt $fill in the blank fe57f5f50043050_2 Patel $fill in the blank fe57f5f50043050_4 Question Content Area c. How should the cash be divided between Hewitt and Patel? If an amount is zero, enter "0". blankHewitt and PatelDistribution of Cash Hewitt Patel Capital balances before realization $fill in the blank 2e3dfe08df82014_1 $fill in the blank 2e3dfe08df82014_2 Division of gain or loss on realization fill in the blank…
The following condensed balance sheet is for the partnership of Miller, Tyson, and Watson, who share profits and losses in the ratio of 6:2:2, respectively: Cash $ 50,000 Liabilities $ 42,000 Other assets 150,000 Miller, capital 69,000 Tyson, capital 69,000 Watson, capital 20,000 Total assets $ 200,000 Total liabilities and capital $ 200,000 b. For how much money must the other assets be sold so that each partner receives some amount of cash in a liquidation?
2) After the realization of non-cash assets, the following account balances appeared in the genera ledger of the partnership of See, Chap, and Pooh. Cash P 10,000 Liabilities 30,000 Pooh,Loan 5,000 See,Capital 15,000 Chap,Capital 10,000 Pooh,Capital 10,000 Profits are shared 2:4:4 for See, Chapand Pooh, respectively. Pooh is insolvent. Q3. How much additional investment did Chap make? a. 10,000 b. 14,000 c. 15,000 d. 20,000
Jacob and Joseph are partners with capital balances of P1,600,000 and P2,400,000 respectively. They share profits and losses in a ratio of 2 : 3. Jacob and Joseph agreed to accept Joshua into the partnership by investing P1,000,000 cash for a one-fifth interest in the partnership. Joshua's capital balance will be 1. P1,000,000 P 900,000 'P 800,000 P 700,000 Not given 2. Jacob and Joseph agreed to accept Joshua into the partnership by investing P1,000,000 cash for a one-fifth interest in the partnership. Jacob's capital balance will be P2,400,000 P2,000,000 P1,600,000 P1,000,000 Not given 3. Jacob and Joseph agreed to accept Joshua into the partnership by investing P1,000,000 cash for a one-fourth interest in the partnership. Joshua's capital balance will be P2,250,000 P2,000,000 P1,500,000 P1,250,000 Not given
Adams, Peters, and Blake share profits and losses for their APB Partnership in a ratio of 2:3:5. When they decide to liquidate, the balance sheet is as follows: Assets Liabilities and Capital $ 49,000 Cash Adams, Loan Other Assets Total Assets 11,800 218,000 Liabilities Adams, Capital Peters, Capital Blake, Capital Total Liabilities and Equities $ 278,800 $ 45,500 64,900 88,500 79,900 $ 278,800 Liquidation expenses are expected to be negligible. No interest accrues on loans with partners after termination of the business. During the liquidation process for the APB Partnership, the following events occurred: 1. During the first month of liquidation, noncash assets with a book value of $89,500 were sold for $68,000, and $22,500 of the liabilities were paid. 2. During the second month, the remaining noncash assets were sold for $78,000. The loan receivable from Adams was collected, and the rest of the creditors were paid. 3. Cash is distributed to partners at the end of each month.…
On January 1, 2020, Procise Corporation acquired 100 percent of the outstanding voting stock of GaugeRite Corporation for $1,980,000 cash. On the acquisition date, GaugeRite had the following balance sheet: Cash $ 14,000 Accounts payable $ 120,000 Accounts receivable 100,000 Long-term debt 930,000 Land 700,000 Common stock 1,000,000 Equipment (net) 1,886,000 Retained earnings 650,000 Total assets $ 2,700,000 Total liabilities and equity $ 2,700,000 At the acquisition date, the following allocation was prepared: Fair value of consideration transferred $ 1,980,000 Book value acquired 1,650,000 Excess fair value over book value 330,000 To in-process research and development $ 44,000 To equipment (8-year remaining life) 56,000 100,000 To goodwill (indefinite life) $ 230,000 Although at acquisition date Procise had expected $44,000 in future benefits from…

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