After working for In the Kitchen remodeling business for several years, Terryand Phyllis decided to go into business for themselves and formed the KitchensJust for You partnership. Three years ago, they admitted Connie as a partnerand recognized goodwill at that time because of her good client list for plannedkitchen makeovers. However, they were not able to gain a sufficient market fornew customers and on September 1, 20X9, they agreed to dissolve andliquidate the business. They decided on an installment liquidation to completethe projects already initiated. The balance sheet, with profit and loss-sharingpercentages at the beginning of liquidation, is as follows:KITCHENS JUSTFOR YOUBalance SheetSeptember 1,20X9AssetsLiabilities andEquitiesCash$6,000$ 39,000AccountsPayableReceivables68,000Connie, Loan14,000Terry, Loan8,000Terry, Capital11,500(30%)Inventory48,00037,000Phyllis, Capital(60%)Goodwill22,00050,500Connie, Capital(10%)Total Assets$152,000Total Liabilities $ 152,000& EquitiesConnie's loan was for working capital; the loan to Terry was for his unexpectedpersonal medical bills.During September 20X9, the first month of liquidation, the partnershipcollected $43,000 in receivables and decided to write off $14,000 of theremaining receivables. Sales of one-half of the book value of the inventoryrealized a loss of $6,000. The partners estimate that the costs of liquidating thebusiness (newspaper ads, signs, etc.), are expected to be $6,000 for theremainder of the liquidation process.Required:Prepare a schedule of safe payments to partners as of September 30, 20X9, toshow how the available cash should be distributed to the partners. Pleasefollow the practical guidelines when completing this worksheet.

Answered: Image /qna-images/answer/c02a79cf-5a19-4d0f-a728-da9a281b505c.jpg

KITCHENS JUST FOR YOU Balance Sheet September 1, 20X9 Assets Cash 6,000 $ 39,000 Accounts Payable Receivables 68,000 Connie, Loan 14,000 Terry, Loan 8,000 Terry, Capital 11,500 (30%) Inventory 48,000 Phyllis, Capital 37,000 (60%) Goodwill 22,000 50,500 Connie, Capital (10%) Total Assets $ 152,000 $152,000 Total Liabilities & Equities Connie's loan was for working capital; the loan to Terry was for his unexpected personal medical bills. During September 20X9, the first month of liquidation, the partnership collected $43,000 in receivables and decided to write off $14,000 of the remaining receivables. Sales of one-half of the book value of the inventory realized a loss of $6,000. The partners estimate that the costs of liquidating the business (newspaper ads, signs, etc.), are expected to be $6,000 for the remainder of the liquidation process. Required: Prepare a schedule of safe payments to partners as of September 30, 20X9, to show how the available cash should be distributed to the partners. Please follow the practical guidelines when completing this worksheet. Liabilities and Equities $

KITCHENS JUST FOR YOU Balance Sheet September 1, 20X9 Assets Cash 6,000 $ 39,000 Accounts Payable Receivables 68,000 Connie, Loan 14,000 Terry, Loan 8,000 Terry, Capital 11,500 (30%) Inventory 48,000 Phyllis, Capital 37,000 (60%) Goodwill 22,000 50,500 Connie, Capital (10%) Total Assets $ 152,000 $152,000 Total Liabilities & Equities Connie's loan was for working capital; the loan to Terry was for his unexpected personal medical bills. During September 20X9, the first month of liquidation, the partnership collected $43,000 in receivables and decided to write off $14,000 of the remaining receivables. Sales of one-half of the book value of the inventory realized a loss of $6,000. The partners estimate that the costs of liquidating the business (newspaper ads, signs, etc.), are expected to be $6,000 for the remainder of the liquidation process. Required: Prepare a schedule of safe payments to partners as of September 30, 20X9, to show how the available cash should be distributed to the partners. Please follow the practical guidelines when completing this worksheet. Liabilities and Equities $

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: SAP!! DECEMBER 31,2012 TITLE OF ACCOUNT DEBIT CREDIT Cash 130,350 Account receivable…

A: The financial statements of the business include the income statement and balance sheet.

Q: 15/24 crual Basis Balance Sheet As of December 31, 2024 Dec 31, 24 % of Column 24000 - PayrollI…

A: The question is related to Net Profit Margin. The Net Profit Margin is calculated as under Net…

Q: Jim Short's Company makes clothing for schools. Sales in 20X1 were $4,470,000. Assets were as…

A: Accounts Receivable Turnover: This ratio measures the number of times a business collects its…

Q: X Co. began operating on March 1 and its sales in March were $100,000, all purchased on account.…

A: To calculate the ending Accounts Receivable balance for March, we need to consider the sales,…

Q: Cash 20,000 Accounts receivable 60,000 Inventory Prepaid insurance Long-term Assets Accounts payable…

A: Current Assets Amount Cash 20,000 Accounts Receivable 60,000 Inventory…

Q: S Quantum Moving Company has the following data. Industry information also is shown. Company Data…

A: Ratio Analysis -The ratio is the technique used by the prospective investor or an individual or…

Q: Which balance sheet line item has the highest percentage increase from the prior year to the current…

A: Comparative balance sheet used to compare the financial statement of two or more periods. It is…

Q: Balance Sheet Data Income Statement Data Cash $900,000 Accounts payable $1,080,000 Sales $18,000,000…

A: Equity multiplier is increased when debt component is increased in the capital structure and equity…

Q: XYZ Company Balance Sheet Assets Cash $10,000 Notes Inventory $61,000 Wages Property $110,000…

A: Formula for Quick ratio=Cash + Marketable Securities+ Net Accounts ReceivableCurrent Liabilities…

Q: Turnover Gross Profit Extracts from Julie's accounts are shown below Ye-Dec-24 Ye-Dec-23 18,500…

A: Solution- 1. Indirect Cash Flow Statement PreparationAn indirect cash flow statement starts with…

Q: Drood Company Comparative Balance Sheet Current Year Previous Year…

A: A ratio analysis seems to be an analysis of items listed in a company's financial statements. A…

Q: The financial statements for Leslo Inc. are as follows: LESLO INC. Balance Sheet March 31 Assets…

A: The question is related to Ratio Analysis. 1.Earnings per share is calculated with the help of…

Q: Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet…

A: In this question, we have been given the opening and closing balance of the Balance sheet and an…

Q: Question: Krug Service Company Expenses Revenues $9,700 26,000 Owner, Withdrawals 1,400 Cash 900…

A: Krug Service Company Net Income Calculation: Net Income=Revenues−Expenses Given: Revenues: $26,000…

Q: Condensed financial data are presented below for the Phoenix Corporation: 20X2 20X1 $ 267,500…

A: Return on common equity indicates the percentage earn by the business on its total common equity.

Q: Based on the following information, which of the following is closest to days' sales outstanding?…

A: Day's sales outstanding= Accounts receivable/Credit sales * no. of Days

Q: Portions of the financial statements for Peach Computer are provided below. PEACH COMPUTER Income…

A: PEACH COMPUTER Cash Flow Statement (Partial) For the year ended December 31, 2021 Cash Flow…

Question

After working for In the Kitchen remodeling business for several years, Terry
and Phyllis decided to go into business for themselves and formed the Kitchens
Just for You partnership. Three years ago, they admitted Connie as a partner
and recognized goodwill at that time because of her good client list for planned
kitchen makeovers. However, they were not able to gain a sufficient market for
new customers and on September 1, 20X9, they agreed to dissolve and
liquidate the business. They decided on an installment liquidation to complete
the projects already initiated. The balance sheet, with profit and loss-sharing
percentages at the beginning of liquidation, is as follows:
KITCHENS JUST
FOR YOU
Balance Sheet
September 1,
20X9
Assets
Liabilities and
Equities
Cash
$
6,000
$ 39,000
Accounts
Payable
Receivables
68,000
Connie, Loan
14,000
Terry, Loan
8,000
Terry, Capital
11,500
(30%)
Inventory
48,000
37,000
Phyllis, Capital
(60%)
Goodwill
22,000
50,500
Connie, Capital
(10%)
Total Assets
$
152,000
Total Liabilities $ 152,000
& Equities
Connie's loan was for working capital; the loan to Terry was for his unexpected
personal medical bills.
During September 20X9, the first month of liquidation, the partnership
collected $43,000 in receivables and decided to write off $14,000 of the
remaining receivables. Sales of one-half of the book value of the inventory
realized a loss of $6,000. The partners estimate that the costs of liquidating the
business (newspaper ads, signs, etc.), are expected to be $6,000 for the
remainder of the liquidation process.
Required:
Prepare a schedule of safe payments to partners as of September 30, 20X9, to
show how the available cash should be distributed to the partners. Please
follow the practical guidelines when completing this worksheet.

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 1Schedule of safe payments

VIEW

Step 2Statement of partnership liquidation

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

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

i need 4 and 5
what is income statement? cash $14,785.00 A/R $100.00 Packing and office supplies $370.00 inventory $6,350.00 office forniture and equipment $1,100.00 AD:office furn and equipment $31.00 A/P $1,850.00 interest payable $133.00 unearned revenue $350.00 bank loan $5,000.00 equity $11,089.00 drawings $15.00 shoe sales revenue $7,180.00 sales returns $120.00 cost of sales $500.00 online store expenses $650.00 shipping costs $1,199.00 interest expense $133.00 inventory shrink $150.00 depreciation expense $31.00 supplies expense $130.00 25,633 25,633
* Question Completion Status: 1. 4 6 7 8 10 11 12 Presented below are selected account balances for DEF Corporation as of December 31, 2021. (All accounts have their normal balances) Inventory 12/31/21 $65,000 Cost of Goods Sold $230,000 Sales Revenue 450,000 Selling Expenses 26,000 Interest Revenue 10,000 Administrative Expenses 28,000 Dividends 20,000 Income Tax Expense 20,000 Common Stock 70,000 Retained Earnings 48,000 Rent Revenue 13,000 Allowance for Doubtful Accounts 11,000 Accounts Receivables 88,000 Rent Expense 16,000 Instructions: Prepare the necessary closing entries for DEF Corporation on December 31, 2021. Select and copy the table below to answer in the space provided. Account Description Debit Credit Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers Close Window Save and Submit
MEGAFRAME COMPUTER COMPANY Balance Sheet As of December 31 ASSETS Cash $ 50,000 Accounts receivable 70,000 Inventory 110,000 Net plant and equipment 220,000 Total assets $ 450,000 LIABILITIES AND STOCKHOLDERS’ EQUITY Accounts payable $ 70,000 Accrued expenses 50,000 Long-term debt 130,000 Common stock 70,000 Paid-in capital 40,000 Retained earnings 90,000 Total liabilities and stockholders’ equity $ 450,000 MEGAFRAME COMPUTER COMPANY Income Statement For the year ended December 31 Sales (all on credit) $ 875,000 Cost of goods sold 600,000 Gross profit $ 275,000 Sales and administrative expenses 30,000 Depreciation 55,000 Operating profit $ 190,000 Interest expense 25,000 Profit before taxes $ 165,000 Taxes (30%) 49,500 Net income $ 115,500 Refer to the tables above. What is Megaframe Computer's total asset turnover?
ss
9