Problem 2. During liquidation, the Partnership of Pateno, Bautista and Apalisoc became insolvent.On Jan. 17, 2021, after all non-cash assets had been realized and all available cash had beendistributed to creditors, the statement of financial position of the partnership is as follows:Liabilities and Partners' Capital:Accounts payable - TradeP60,000120,000Pateno, CapitalBautista, Capital-160,000Apalisoc, Capital-20,000P-0-Total liabilities & partners' capitalThe partners share profits and losses (including gains and losses in liquidaion) in theratio 20%, 50% and 30%, respectively. On Jan. 17, 2021, the personal financial positionsof the partners were as shown below:PartnerAssetsLiabilitiesPatenoP60,000P80,000Bautista280,000200,000Apalisoc250,000240,000Required: Determine the receipt of cash from Bautista and Apalisoc, the appropriatedistribution of cash, and the completion of the partnership liquidation.

Liquidation when all the partners or any one of them became insolvent then the business of the…

n Jan. 17, 2021, after all non-cash assets had been realized and all available cash had been istributed to creditors, the statement of financial position of the partnership is as follows: abilities and Partners' Capital: ccounts payable - Trade P60,000 120,000 ateno, Capital autista, Capital -160,000 palisoc, Capital -20,000 ptal liabilities & partners' capital P-O-

n Jan. 17, 2021, after all non-cash assets had been realized and all available cash had been istributed to creditors, the statement of financial position of the partnership is as follows: abilities and Partners' Capital: ccounts payable - Trade P60,000 120,000 ateno, Capital autista, Capital -160,000 palisoc, Capital -20,000 ptal liabilities & partners' capital P-O-

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

Following is the statement of financial position of ABC Partnership before realization of assets on July 1, 2020: Cash 10,000 Liabilities 28,000 Accounts 50,000 A, Capital 45,000 receivable Inventory 30,000 B, Capital 27,000 Equipment 60,000 C, Capital 50,000 Total 150,000 Total 150,000 The partners share income 30:30:40, respectively. On July 2, the partnership liquidated, 50% of the receivables are collected and that inventory is fully written-off. Equipment is sold for 55,000. Determine payment to partner B.
The equal DEF partnership has the following balance sheet:Cash and other assets $400,000Recourse liabilities $100,000Capital – D $100,000Capital – E $100,000Capital – F $100,000The profits and losses are allocated 40% to D, and 30% each to E and F. Under thepartnership agreement there is a capital account deficit restoration provision. Howshould the liability be allocated?
Help me please
The capital account for the partnership of N and Q at Oct. 31, 2021 follows:N, Capital-------- 80 ,000Q, Capital------- 40, 000Total -------------- 120, 000The partners share profits and losses in the ratio of 6:4, respectively. The partnership is in desperate need of cash, and the partners agreed to admit S as a partner with a 1/3 interest in the capital and profits and losses upon her investment of 30, 000. Immediately after admission, what should be the capital balances of N, Q, and S, respectively, assuming bonus is not to be recognized. *
For Crane Co., beginning capital balances on January 1, 2022, are Nancy Payne $21,200 and Ann Dody $17,200. During the year, drawings were Payne $7,000 and Dody $5,900. Net income was $26,500, and the partners share income equally. (a) Prepare the partners' capital statement for the year. (List Items that increase partners' capital first.) (b) : eTextbook and Medial Save for Later $ $ CRANE CO. Partners' Capital Statement N. Payne Prepare the owners' equity section of the balance sheet at December 31, 2022. CRANE CO. Partial Balance Sheet $ $ A. Dody Attempts: 0 of 5 used Total Submit Answer
10. The partners' capital (income-sharing ratio in parentheses) of Acosta, Bautista, Campos, & Dela Cruz LLP on May 31, 2020, was as follows: P195,000 Acosta (20%) Bautista (20%) Campos (20%) Dela Cruz (40%) Total partners' capital (20%) P812,500 260,000 227,500 130,000 On May 31, 2020, with the consent of Acosta, Bautista, and Dela Cruz: a. Sam Campos retired from the partnership and was paid P162,500 cash in full settlement of his interest in the partnership. b. Lois Elon was admitted to the partnership with a P65,000 cash investment for a 10% interest in the net assets of Acosta, Bautista, Dela Cruz & Elon LLP. The capital account to be credited to Elon: a. P71,500 b. P87,750 C. P65,000 d. P81,250 194
The ABC partnership has three equal partners, A, B, and C, and the following balance sheet: Assets Partner's Capital Adj. Basis FMV Adj. Basis FMV Cash 60,000 60,000 A 70,000 80,000 Cap Asset 1 90,000 60,000 B 70,000 80,000 Cap Asset 2 40,000 60,000 C 70,000 80,000 Cap Asset 3 20,000 60,000 210,000 240,000 210,000 240,000 A receives capital asset #1 in an operating distribution. A has a one-ninth interest worth $20,000 in the partnership capital and profits after the distribution. (a) What results to A and the partnership if there is no §754 election? Reconstruct the balance sheet after the distribution. (b) What results to A and the partnership if the partnership has made a §754 election? Reconstruct the balance sheet after the distribution. (c) How should any basis adjustment be allocated among the partners?
A and S are partners sharing profit and loss in the ratio of 3:1. Their Statement of Financial Position(Balance Sheet) stood as at 31.12.2020 as follows: A and S Partnership Statement of Financial Position(Balance Sheet) As at 31st December 2020 ASSETS Current Assets Kshs' Kshs' Cash and Cash Equivalent 26,000 Investments 24,000 Prepaid Insurance Debtors 26,000 Less Provision for Doubtful Debts 26,000 Inventories(stock) 40,000 Total Current Assets 116,000 Non Current Assets Machinery Less:Accumulated Depreciation 10,000 10,000 Buildings 60,000 Less:Accumulated Depreciation - 60,000 Furniture 30,000 Less:Accumulated Depreciation -…
For the year 2021, the partnership of AMMAR and BANU realized a net profit of P240,000. The capital accounts of the partners show the following postings: Jan. 1 May 1 July 1 Aug. 1 Oct. 1 AMMAR Debit Credit Debit Credit 20,000 10,000 120,000 BANU 10,000 10,000 5,000 80,000 20,000 Question 5 If the profits are to be divided based on average capital, how much will be the share of AMMAR?
14. On December 31, 2015, the statement of financial position of JMR Partnership is presented below: Assets, at cost 180,000 JJ, loan JJ, capital мм, саpital RR, capital Total 10,000 45,000 40,000 85,000 180,000
The assets and capital of QRS Partnership at the end of its fiscal year on October 31, 2021 are as follevs: ASSETS LIABILITIES AND CAPITAL Cash 30,000 Liabilities 100,000 Receivable, net Merchandise Inventory 40,000 Loan from S 20,000 80,000 Q, Capital (30%) 140,000 R, Capital (50%) 10,000 S, Capital (20%) 90,000 Non-current Asset 60,000 Loan to R 30,000 The partners decide to liquidated the partnership. They estimate that the noncash assets, other than the loan to R, can be converted into P200,000 cash over the two-months period ending December 31, 2021. Cash is to be distributed to the appropriate parties as it becomes available during the liquidation process. Compute the amount to be received by Q if P150,000 is available for first distribution?