P12-3C The partners in Pawnee Company decide to liquidate the firm when the balance sheet shows the following. PAWNEE COMPANY Balance Sheet April 30, 2012 Assets Liabilities and Owners' Equity $16,000 24,000 Cash $28,000 19,000 (1,000) 28,000 17,000 (10,000) $81,000 Notes payable Accounts payable Salaries and Wages payable Neeley, capital Hannah, capital Doonan, capital Accounts receivable Allowance for doubtful accounts Inventory Equipment Accumulated depreciation-equipment 2,000 23,000 11,200 4,800 $81,000 Total Total The partners share income and loss 5:3:2. During the process of liquidation, the transactions be- low were completed in the following sequence. 1. A total of $43,000 was received from converting noncash assets into cash. 2. Liabilities were paid in full. 3. Cash was paid to the partners with credit balances. Instructions (a) Prepare a cash distribution schedule. (b) Prepare the entries to record the transactions. (c) Post to the cash and capital accounts.

P12-3C The partners in Pawnee Company decide to liquidate the firm when the balance sheet shows the following. PAWNEE COMPANY Balance Sheet April 30, 2012 Assets Liabilities and Owners' Equity $16,000 24,000 Cash $28,000 19,000 (1,000) 28,000 17,000 (10,000) $81,000 Notes payable Accounts payable Salaries and Wages payable Neeley, capital Hannah, capital Doonan, capital Accounts receivable Allowance for doubtful accounts Inventory Equipment Accumulated depreciation-equipment 2,000 23,000 11,200 4,800 $81,000 Total Total The partners share income and loss 5:3:2. During the process of liquidation, the transactions be- low were completed in the following sequence. 1. A total of $43,000 was received from converting noncash assets into cash. 2. Liabilities were paid in full. 3. Cash was paid to the partners with credit balances. Instructions (a) Prepare a cash distribution schedule. (b) Prepare the entries to record the transactions. (c) Post to the cash and capital accounts.

Name: P12-3CPrepare entries and schedule ofcash payments in liquidation ofa
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: P12-3CPrepare entries and schedule ofcash payments in liquidation ofa partnershipThe partners in Pawnee Company decide to liquidate the firm when the balance sheetshows the following.(SO 5)PAWNEE COMPANYGLSBalance SheetApril 30, 2012AssetsLiabilitie

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

Orion, Leanna and Aric were partners sharing profits and losses in the proportion of 2:2:1, following is their Balance Sheet as on 31st March, 2008. Balance Sheet as on 31 March, 2008 Assets Liabilities Capital Accounts: Orion Leanna Aric General Reserve Creditors Orion's Loan A/c Bills payable Amount $ Machinery 30,000 Stock 10,000 Debtors 10,000 Loss: R.D.D. 3,000 Investment 20,000 Profit and Loss A/c 4,000 Bank 7,000 84,000 27,500 1,500 2) Dissolution expenses were $ 1,500. 3) Goodwill of the firm realised $ 12,000 Pass the necessary Journal entries in the books of the firm. Amount $ 25,000 10,000 26,000 12,000 9,000 2,000 84,000 On the above date the partners decided to dissolve the firm: 1) Assets were realised: Machinery $ 22,500, Stock $9,000, Investment $ 10,500, Debtors $ 22,500.
The partnership of Kylie, Bamboo and Tank is being liquidated. The summarized balance sheet below depicts their financial position before liquidation: Cash Loans to Tank Other non-cash assets P 30,000 70,000 600,000 The other non-cash assets were sold at P400,000. 1. The excess cash distributed to Kylie is P40,000 A. True B. False Accounts payables P Kylie, loan Kylie, capital (40%) Bambo, capital (20%) Tank, capital (40%) 2. The excess cash distributed to Tank is P110,000 A. True B. False 3. The ending balance of non-cash assets after liquidation is P200,000 A. True B. False 280,000 30,000 90,000 150,000 150,000
On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership. The following information was made available: Cash Accounts receivable Inventory Equipment Total Accounts payable A, Capital (20%) B, Capital (30%) C, Capital (50%) Total 80,000 240,000 480,000 1,200,000 2,000,000 600,000 200,000 400,000 800,000 2,000,000 The net proceeds from the sale of non-cash assets amounted to P260,000. The personal assets and personal liabilities of the partners are as follows: A с B Personal assets 1,200,000 1,040,000 800,000 Personal liabilities (880,000) (880,000) (1,280,000) How much additional contributions shall be made by the partners in order to settle all of the partnership liabilities?
The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its business property. A balance sheet drawn up at this time shows the following account balances: Cash $ 60,000 Liabilities $ 40,000 Noncash assets 219,000 Frick, capital (60%) 129,000 Wilson, capital (20%) 35,000 Clarke, capital (20%) 75,000 Total assets $279,000 Total liabilities and capital $279,000 Part A Prepare a predistribution plan for this partnership. Part B The following transactions occur in liquidating this business: Distributed safe payments of cash immediately to the partners. Liquidation expenses of $8,000 are estimated as a basis for this computation. Sold noncash assets with a book value of $94,000 for $60,000. Paid all liabilities. Distributed safe payments of cash again. Sold remaining noncash assets for $51,000. Paid actual liquidation expenses of $6,000 only. Distributed remaining cash to the partners and closed the financial records of the business permanently.…
The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: Cash $ 61,000 Liabilities $ 55,000 Noncash assets 329,000 Drysdale, loan 42,500 Drysdale, capital (50%) 107,500 Koufax, capital (30%) 97,500 Marichal, capital (20%) 87,500 a-1. Determine the maximum loss that can be absorbed in Step 1. Then, assuming that this loss has been incurred, determine the next maximum loss that can be absorbed in Step 2. a-2. Liquidation expenses are estimated to be $21,000. Prepare a predistribution schedule to guide the distribution of cash. Further, modify the tags in explanation as well. b. Assume that assets costing $99,000 are sold for $72,500. How is the available cash to be divided?
The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its business property. A balance sheet drawn up at this time shows the following account balances: Cash $ 64,000 Liabilities $ 44,000 Noncash assets 225,000 Frick, capital (60%) 132,000 Wilson, capital (20%) 36,000 Clarke, capital (20%) 77,000 Total assets $ 289,000 Total liabilities and capital $ 289,000 Part A Prepare a predistribution plan for this partnership. Part B The following transactions occur in liquidating this business: Distributed safe payments of cash immediately to the partners. Liquidation expenses of $9,000 are estimated as a basis for this computation. Sold noncash assets with a book value of $96,000 for $64,000. Paid all liabilities. Distributed safe payments of cash again. Sold remaining noncash assets for $52,000. Paid actual liquidation expenses of $7,000 only. Distributed remaining cash to the…
The partnership of Wingler, Norris, Rodgers, and Guthrie was formed several years ago as a local architectural firm. Several partners have recently undergone personal financial problems and have decided to terminate operations and liquidate the business. The following balance sheet is drawn up as a guideline for this process: Cash $ 19,000 Liabilities $ 71,000 Accounts receivable 86,000 Rodgers, loan 39,000 Inventory 105,000 Wingler, capital (30%) 126,000 Land 87,000 Norris, capital (10%) 92,000 Building and equipment (net) 170,000 Rodgers, capital (20%) 76,000 Guthrie, capital (40%) 63,000 Total assets $ 467,000 Total liabilities and capital $ 467,000 When the liquidation commenced, liquidation expenses of $14,000 were anticipated as being necessary to dispose of all property. Part A Prepare a predistribution plan for this partnership. Part B The following transactions transpire during the liquidation of the Wingler,…
POP Inc is to be liquidated and has the following liabilities: income taxes payable 42,805 wages payable 157,320 accounts payable (including customers credit balances of 50,000) 1,380,000 bonds payable(including interests of 50,000) 1,250,000 notes payable( excluding interests of 20,000) 670,000 The company's asset is composed of the following at their book values: cash 100,000 accounts receivable(including customer's credit balances mentioned above) 500,000 inventory (used as security for the notes) 330,000 land and building (used as security for the bonds) 1,500,000 comparing to their net realizable values, the followinghas been determined: - 20% of the accounts receivable is worthless - 1/3 of the inventory owned by the company is worthless - land and building is undervalued by 500,000 How much will be recovered by creditors from the account payable? Round off answers to two decimal places
The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: Cash Noncash assets $ 41,000 229,000 Liabilities Drysdale, loan Drysdale, capital (50%) Koufax, capital (30%) Marichal, capital (20%) $46,500 21,000 77,500 67,500 57,500 a-1. Determine the maximum loss that can be absorbed in Step 1. Then, assuming that this loss has been incurred, determine the next maximum loss that can be absorbed in Step 2. a-2. Liquidation expenses are estimated to be $20,000. Prepare a predistribution schedule to guide the distribution of cash. Further, modify the tags in explanation as well. b. Assume that assets costing $79,000 are sold for $62,500. How is the available cash to be divided?
The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: Cash $ 37,000 Liabilities $ 49,000 Noncash assets 209,000 Drysdale, loan 12,500 Drysdale, capital (50%) 71,500 Koufax, capital (30%) 61,500 Marichal, capital (20%) 51,500 a-1. Determine the maximum loss that can be absorbed in Step 1. Then, assuming that this loss has been incurred, determine the next maximum loss that can be absorbed in Step 2. a-2. Liquidation expenses are estimated to be $16,000. Prepare a predistribution schedule to guide the distribution of cash. Further, modify the tags in explanation as well. b. Assume that assets costing $75,000 are sold for $60,500. How is the available cash to be divided?
On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership. 80,000 240,000 480,000 1,200,000 2,000,000 Cash Accounts receivable Inventory Equipment Total Accounts payable to B Payable A, Capital (20%) B, Capital (30%) C, Capital (50%) 800,000 Total 2,000,000 Information on the conversion of non-cash assets is as follows: 120,000 80,000 400,000 600,000 • $40,000 was collected on accounts receivable; the balance is uncollectible. $20,000 was received for the entire inventory. . The equipment was sold for $200,000./ $8,000 liquidation expenses were paid. • • #108,000 was paid to outside creditors, after offset of a 12,000 credit, memorandum received on January 2, 20x1. All of the partners are personally solvent. How much did B receive from the settlement of his interest in the partnership?
16. On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership on installment basis. Distributions to partners shall be made as cash becomes available. The following information was made available: Dr. 40,000 120,000 Cr. . Cash Accounts receivable Receivable from c 20,000 240,000 600,000 Inventory Equipment Accounts payable Payable to B A, Capital (20%) A, Drawing B, Capital (30%) C, Capital (50%) C, Drawings Totals 60,000 40,000 200,000 40,000 300,000 400,000 60,000 1,060,000 1,060,000 During January, non-cash assets with carrying amount of P260,000 was sold for P120,000. Disposal costs amounted to P40,000. All of the partners are personally insolvent. How much did B receive on the cash distribution to the partners? a. 60,000 b. 74,000 c. 76,000 d. 0