Jake, Sacha, and Brianne own a tour company called Adventure Sports. The partners share profit and losses in a 2:3.5 ratio. After lengthy disagreements among the partners and several unprofitable periods, the friends decided to liquidate the partnership. Before the liquidation, the partnership balance sheet showed total assets, $239,300; total liabilities, $201,000, Jake, Capital, $8,100; Sacha, Capital, $10,100; and Brianne, Capital, $20,100. The cash proceeds from selling the assets were sufficient to repay all but $46,000 to the creditors. Calculate the loss from selling the assets. (Round the final answer to the nearest doller.) Loss on sale of assets Allocate the loss to the partners. (Round the final answers to the nearest dollar. Negative amounts should be indicated by minus sign.) Allocation of loss Jake Sacha Brianne Total bilibu chould be paid by each partner. (Round the final answers to the nearest dollar.

Jake, Sacha, and Brianne own a tour company called Adventure Sports. The partners share profit and losses in a 2:3.5 ratio. After lengthy disagreements among the partners and several unprofitable periods, the friends decided to liquidate the partnership. Before the liquidation, the partnership balance sheet showed total assets, $239,300; total liabilities, $201,000, Jake, Capital, $8,100; Sacha, Capital, $10,100; and Brianne, Capital, $20,100. The cash proceeds from selling the assets were sufficient to repay all but $46,000 to the creditors. Calculate the loss from selling the assets. (Round the final answer to the nearest doller.) Loss on sale of assets Allocate the loss to the partners. (Round the final answers to the nearest dollar. Negative amounts should be indicated by minus sign.) Allocation of loss Jake Sacha Brianne Total bilibu chould be paid by each partner. (Round the final answers to the nearest dollar.

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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Ole Low, Arnt Olson, and Stig Lokum decided to liquidate the CRANE partnership on December 31 of the current year, and go their separate ways. The partners share profit and losses equally. As at December 31, the partnership had cash of $14,000, noncash assets of $119,000, and liabilities of $18,000. Before selling their noncash assets, the partners had capital balances of $44,700, $62,300, and $8,000, respectively. The noncash assets were sold for $80,000 and the creditors were paid. Calculate the loss on the sale of the noncash assets and the amount of cash remaining after paying the liabilities. Loss on sale of noncash assets Cash balance after paying the liabilities$
Fitzee, Chesher and Klotia have a partnership. They share income on the basis of the following ratio: 2:3:5. Each partner has the following capital balances respectively $220,000, $250,000, and $145,000. They decided to liquidate their business on July 3 because they wanted to pursue other interests. They had a big liquidation sale and they sold all non-cash assets for $445,000. They have the following accounts: Cash $200,000 Supplies $50,000 Equipment $150,000 Truck $65,000 Building $300,000 AP $200,000 Prepare all of the journal entries to close this business General Journal Page Date Particulars PR Debits Credits
David Wallace, Olena Dunn, and Danny Lin were partners in a commercial architect firm and showed the following account balances as of December 31, 2023: Account balances December 31, 2023 Due to several unprofitable periods, the partners decided to liquidate the partnership. The equipment was sold for $59,000 on January 1, 2024. The partners share any profit (loss) in the ratio of 2:1:1 for Wallace, Dunn, and Lin, respectively. David Olena Accum. Deprec. Accounts Danny Notes Wallace, Dunn, Lin, Equipment Equipment Payable Payable Capital Capital Capital $19,300 $161,000 $92,000 $7,300 $15,000 $34,000 $17,000 $15,000 Cash Required: 1. Complete the schedule. (Negative answers should be indicated by a minus sign.) Account balances December 31, 2023 Sale of equipment Balance Payment of liabilities Balance Cash Equipment Accum. Deprec. Equipment $ 19,300 $ 161,000 $ 59,000 161,000 322,000 $ $ 78,300 $ $ 78,300 $ 322,000 $ Accounts Payable 92,000 $ 92,000 184,000 $ 184,000 $ Notes Payable…
Hershey, Inigo, Jessa and Kyle are partners who share profits and losses in the ratio of 3:2:1:4. As of the current date, the partners become insolvent so they decide to liquidate their business. The capital balance of each partner amount to P30,000, P35,000, P20,000 and P50,000 to Hershey, Inigo, Jessa and Kyle respectively. At this time, total liabilities of the partnership amount to P180,000. From the data above, answer the following independent questions: 14. If the partnership received P185,000 from the sale of all non-cash assets of the partnership, determine the amount of cash that Hershey is to receive assuming there is no cash balance before realization and all partners are insolvent at the time of liquidation. A. P9,000 C. PO B. P2,000 D. P1,500 15. If Kyle receives P12,000 as settlement of his interest, how much were the non-cash assets sold assuming there is no cash balance before realization? A. P220,000 B. P95,000 C. P315,000 D. P180,000
Wally and Jose were in business for several years, sharing profits and losses equally. Because of Jose's poor health, they decided to liquidate the partnership. Wally managed the liquidation because Jose was in the hospital. Just before liquidation, the partnership balance sheet contained the following information: Cash Other Assets Total Assets P 800,000 P 2,200,000 P 3,000,000 Liabilities Wally, Capital Jose, Capital Total Liabilities & Equity P 500,000 P 1,000,000 P 1,500,000 P 3,000,000 Wally (1) sold the other assets for P 1,750,000, (2) paid off all the creditors, and (3) divided the remaining cash between them, according to their profit and loss sharing ratio. Jose received a note from Wally that read "Good news - sold other assets for P 1,750,000. Have P 1,025,000 check waiting for you. Get well soon." Because he will not be released from the hospital for several days, Jose asks you to review Wally's liquidation and cash distribution procedures. Do you approve Wally's…
Anna, Ben, and Carl's partnership did not go well so the partners decided to liquidate on March 31, 2022. Capital balances of the partners after closing the loss incurred for the first quarter showed: Anna P170,000; Ben, P120,000; Carl, P105,000. Liabilities to outside creditors amounted to P150,000. All are sharing profits and losses equally. The non-cash assets were sold for P160,000 and the creditors were paid. Remaining cash for distribution to partners after the liabilities were paid amounted to P26,000. Deficient partners are solvent. How much is the carrying amount of the non-cash assets prior to realization?
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Martha Wheaton, Bess Chen, and Sam Smith were partners in an urban Calgary tea shop called Wake and showed the following account balances as of December 31, 2023: Account balances December 31, 2023 Due to difficulties, the partners decided to liquidate the partnership. The land and building were sold for $700,000 on January 1, 2024. The partners share any profit (loss) in the ratio of 2:1:1 for Wheaton, Chen, and Smith, respectively. Required: Complete the schedule. Prepare the entry to distribute the remaining cash to the partners assuming any deficiencies are paid by the partners. (Negative answers should be indicated by a minus sign.) Account balances December 31, 2023 Sale of land and building. Balance Payment of liabilities Balance Martha Accum. Deprec. Building Bess Chen, Wheaton, Accounts Payable Sam Smith, Capital Land Capital Capital Cash Building $191,000 $838,000 $487,000 $215,000 $135,000 $330,000 $(59,000) $351,000 Absorption of deficiency Balance Accum. Building Deprec.…
to eBook TOT akeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Locator=&inprogress=false Jesse and Tim form a partnership by combining the assets of their separate businesses. Jesse contributes accounts receivable with a face amount of $49,000 and equipment with a cost of $175,000 and accumulated depreciation of $97,000. The partners agree that the equipment is to be valued at $68,200, that $3,400 of the accounts receivable are completely worthless and are not to be accepted by the partnership, and that $2,500 is a reasonable allowance for the uncollectibility of the remaining accounts receivable. Tim contributes cash of $21,000 and merchandise inventory of $45,000. The partners agree that the merchandise inventory is to be valued at $48,500. Journalize the entries in the partnership accounts for (a) Jesse's investment and (b) Tim's investment. If an amount box does not require an entry, leave it blank. a. b. Allowance for Doubtful Accounts Cash Paused Equipment Tim,…
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Jesse and Tim form a partnership by combining the assets of their separate businesses. Jesse contributes accounts receivable with a face amount of $49,000 and equipment with a cost of $183,000 and accumulated depreciation of $103,000. The partners agree that the equipment is to be valued at $67,600, that $3,200 of the accounts receivable are completely worthless and are not to be accepted by the partnership, and that $2,500 is a reasonable allowance for the uncollectibility of the remaining accounts receivable. Tim contributes cash of $20,000 and merchandise inventory of $45,000. The partners agree that the merchandise inventory is to be valued at $48,500. Journalize the entries in the partnership accounts for (a) Jesse’s investment and (b) Tim’s investment. If an amount box does not require an entry, leave it blank. a. - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - b. - Select - - Select - -…