March, April, and May have been in partnership for a number of years. The partners allocate all profits and losses on a 4:2:2 basis, respectively. Recently, each partner has become personally insolvent and, thus, the partners have decided to liquidate the business in hopes of remedying their personal financial problems. As of September 1, the partnership's balance sheet is as follows: $ 31,000 124,000 Cash Liabilities March, capital April, capital $108,000 59,000 95,000 Accounts receivable 100,000 Inventory Land, building, and equipment (net) 73,000 May, capital 66,000 Total liabilities Total assets $328,000 $328,000 and capital Prepare journal entries for the following transactions a. Sold all inventory for $76,000 cash. b. Paid $13,500 in liquidation expenses. c. Paid $60,000 of the partnership's liabilities. d. Collected $76,000 of the accounts receivable. e. Distributed safe payments of cash; the partners anticipate no further liquidation expenses. f. Sold remaining accounts receivable for 20 percent of face value. g. Sold land, building, and equipment for $37,000. h. Paid all remaining liabilities of the partnership. . Distributed cash held by the business to the partners.

March, April, and May have been in partnership for a number of years. The partners allocate all profits and losses on a 4:2:2 basis, respectively. Recently, each partner has become personally insolvent and, thus, the partners have decided to liquidate the business in hopes of remedying their personal financial problems. As of September 1, the partnership's balance sheet is as follows: $ 31,000 124,000 Cash Liabilities March, capital April, capital $108,000 59,000 95,000 Accounts receivable 100,000 Inventory Land, building, and equipment (net) 73,000 May, capital 66,000 Total liabilities Total assets $328,000 $328,000 and capital Prepare journal entries for the following transactions a. Sold all inventory for $76,000 cash. b. Paid $13,500 in liquidation expenses. c. Paid $60,000 of the partnership's liabilities. d. Collected $76,000 of the accounts receivable. e. Distributed safe payments of cash; the partners anticipate no further liquidation expenses. f. Sold remaining accounts receivable for 20 percent of face value. g. Sold land, building, and equipment for $37,000. h. Paid all remaining liabilities of the partnership. . Distributed cash held by the business to the partners.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Account balances December 31, 2023 Due to several unprofitable periods, the partners decided to liquidate the partnership. The equipment was sold for $67,000 on January 1, 2024. The partners share any profit (loss) in the ratio of 2:1:1 for Wallace, Dunn, and Lin, respectively. Account balances December 31, 2023 Sale of equipment Cash $36,100 Required: 1. Complete the schedule. (Negative answers should be indicated by a minus sign.) Balance Payment of liabilities Balance Accum. David Danny Lin, Olena Deprec. Accounts Notes Wallace, Dunn, Equipment Equipment Payable Payable Capital Capital Capital $185,000 $100,000 $8,100 $23,000 $42,000 $25,000 $23,000 Cash Accum. Deprec. Accounts Notes Payable Payable Equipment $36,100 $ 185,000 $ 100,000 $ 8,100 $ 23,000 $ Equipment David Wallace, Capital 42,000 $ Olena Dunn, Capital 25,000
please do not give solution in image format
ss
The partnership of Mara, Teri, and Rita has been suffering financial difficulty. financial position of Mara, Teri and Rita on this date is as follows: 1. Partners decided to liquidate. The condensed statement of Mara, Teri and Rita Partnership Statement of Financial Position December 31, 2018 Assets Liabilities and Capital Cash P 80,000 Accounts Payable 960,000 Mara, Capital Teri, Capital Rita, Capital P160,000 408,000 352,000 120,000 P1,040,000 Non-cash Assets P1,040,000 The profit and loss ratio is: Mara, 30%; Teri, 20% and Rita, 50%. Rita has no personal assets other than her interest in the partnership. The non-cash assets were sold for P640,000. Any deficient partner is insolvent, while the others are solvent. Required: (a) Prepare a statement of liquidation. (b) Prepare entries to record the liquidation of the partnership.
What amount must be invested by GREEN?
Alex and Bess have been in partnership for many years. The partners, who share profits and losses on a 60:40 basis, respectively. wish to retire and have agreed to liquidate the business. Liquidation expenses are estimated to be $7,000. At the date the partnership ceases operations, the balance sheet is as follows: Cash Noncash assets Total assets $ 66,000 250,000 $316,000 Liabilities Alex, capital Bess, capital Total liabilities and capital Part A: Prepare journal entries for the following transactions that occurred in chronological order. a. Distributed safe cash payments to the partners. b. Paid $28.800 of the partnership's liabilities. c. Sold noncash assets for $268,000. d. Distributed safe cash payments to the partners. e. Paid remaining partnership liabilities of $19,200, f. Paid $5,500 in liquidation expenses; no further expenses will be incurred. g. Distributed remaining cash held by the business to the partners. $ 48,000 150,000 118,000 $316,000 Part B: Prepare a final…
Faith Busby and Jeremy Beatty started the B&B partnership on January 1, Year 1. The business acquired $44,000 cash from Busby and $66,000 from Beatty. During Year 1, the partnership earned $42,000 in cash revenues and paid $18,400 for cash expenses. Busby withdrew $2,000 cash from the business, and Beatty withdrew $2,500 cash. The net income was allocated to the capital accounts of the two partners in proportion to the amounts of their original investments in the business. Required Prepare an income statement, capital statement, balance sheet, and statement of cash flows for B&B's Year 1 fiscal year.
James and John are in partnership sharing profits and losses in the ratio of 6:4 respectively. The following information has been taken from the partnership records for the financial year ended May 31, 2010. Partners’ capital accounts balances: James $300,000 John $240,000 Partners’ current accounts balance at June 1 2009: James $30,000 Cr John $26,000 Cr During the year James and John withdrew $40,000 and $28,000 respectively from the partnership bank account: Interest is to be charged on drawings at a rate of 10% per annum while interest is allowed on capital accounts at the rate of 5% per annum. John is allowed a salary of $20,000 per annum. The net profit for the year ended May 31, 2010 is $152,940. However, interest on loan in the amount of $2,950 due to James was not paid. Required: Prepare the partnership appropriation account for the year ended May 31, 2010. Prepare the partners’ current accounts for the year ended May 31, 2010. Prepare…
9. Marty (M) retires from MNO partnership, an accounting firm. The partnership has the following balance sheet: Asset Cash Accounts rec. Land Total FMV AB $240,000 $240,000 $300,000 $0 Liab/Equity Capital, M Capital N $360,000 $60,000 Capital O $900,000 $300,000 Total The partnership pays Marty $150,000 a year for 2 years. a. What are the consequences to Marty in Year 17 FMV $300,000 $300,000 $300,000 AB $100,000 $100,000 $100,000 $900,000 $300,000
The amount that will be paid to the personal creditors of Esper would be
How much cash should be distributed to Allan?
A and B form a partnership during the year. Each contributes $35,000 in cash. They share capital and profits 50-50. They share losses 70-30 respectively. The partnerships balance sheet was as follows on Dec. 31. The FMV and basis of all the assets are the same Cash 25,000 Debt 45,000 Receivables 15,000 A Capital 35,000 Equipment 75,000 B Capital 35,000 In computing their basis in their partnership interest how much debt will A and B include if the debt is non-recourse