Partners Mel and Jay each have 200K capital balance and share profit and loss in a ratio of 3:2 respectively. At the time of liquidation, Cash equals 100K, noncash assets 600K and liabilities 300K. If noncash assets are sold at 650K Jays capital balance would be

Partners Mel and Jay each have 200K capital balance and share profit and loss in a ratio of 3:2 respectively. At the time of liquidation, Cash equals 100K, noncash assets 600K and liabilities 300K. If noncash assets are sold at 650K Jays capital balance would be

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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Delia and Danny are partners with capital balances of P3,000,000 and P2,000,000, respectively. They share profits and losses in the ratio of 3:2, respectively. If Dada purchased 1/4 of the equity of Danny for P900,000. How much is Danny's capital balance after Dada's admission?P1,500,000n
Partners Thelma Lou and Aunt Bee each have a $50,000 capital balance and share profits and losses in a 2:1 ratio, respectively. The cash balance is $40,000, non-cash assets total $210,000, and liabilities total $150,000. If the non-cash assets are sold for $180,000, what amount will Thelma Lou receive after liquidation? $40,000 O $70,000 O $30,000 O $50,000 Which of the following statements about partnership financial statements is false? O The salary that a partner receives for profit sharing is reported on the partnership income statement. O The financial statements of a partnership are similar to those of a proprietorship. The partnership balance sheet will contain a withdrawal account for each partner. A partnership's balance sheet will contain a capital account for each partner.
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?
X, Y, and Z are partners sharing profits and losses in the ratio of 5:3:2. During the year, their investments and withdrawals are as follows: Investment of X, Y, and Z for P200,000, P175,000 and P375,000 respectively. Withdrawals of X, Y, and Z amounting to P125,000, P62500 and P62,500 respectively. On December 31, 2021, the partners decided to liquidate their business. After exhausting partnership assets, liabilities of P125,000 remain unpaid. X is personally insolvent. The gain or loss on realization is:
Partners A and B share in profits and losses on a 70:30 ratio after salary allowances of ₱80,000 for A and ₱40,000 for B. The business earned profit of ₱320,000 before deduction for the salaries. When closing the income summary account, A’s capital account would be credited for ₱120,000. A’s capital account would be debited for ₱220,000. B’s capital account would be credited for ₱100,000. B’s capital account would be credited for ₱240,000.
Kershaw, Buehler, and Bauer are partners and agree to share profit and loss in the ratio of 30/30/40. The partners have agreed to liquidate, liquidation expenses will total $28,000. The following are the balances prior to liquidation: Cash, $100,000; Noncash assets, $700,000; Liabilities $354,000; Kershaw Capital, $200,000; Buehler Capital, $144,000 and Bauer Capital, $102,000. Assume actual liquidation expenses are $20,000 and noncash assets sold for $500,000 using an excel spreadsheet prepare a statement of partnership liquidation.
The Henry, Isaac, and Jacobs partnership was about to enter liquidation with the following account balances: $ 90,000 $ 60,000 Cash Liabilities Noncash assets 300,000 Henry,capital Isaac, capital Jacobs, capital 80,000 110,000 140,000 Total $390,000 Total $390,000 Estimated expenses of liquidation were $5,000. Henry, Isaac, and Jacobs shared profits and losses in a ratio of 2:4:4. What amount of cash was available for safe payments, based on the above information? Multiple Choice $30,000. $85,000. O $25,000. $35,000. O $40,00o.
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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?
The Sheen, Jimmy and Carl partnership had the following balance sheet just before entering liquidation: Cash P10,000 Liabilities P130,000 Noncash assets 300,000 Sheen, capital 60,000 Jimmy, capital 40,000 Carl, capital 80,000 P310,000 P310,000 Sheen, Jimmy and Carl share profits and losses in a ratio of 2:4:4. Non-cash assets were sold for P180,000. Liquidation expenses were P10,000. Assume that Jimmy was personally insolvent and could not contribute any assets to the partnership, while Sheen and Carl were both solvent. What amount of cash would Sheen receive from the distribution of partnership assets?
Bucao, Basco, and Blanco share profits and losses in the ratio of 2:3:5, respectively. Their partnership realized a profit of P1,800,000 during the year. Bucao, with a beginning capital balance of P1,000,000 withdrew P200,000 during the year. Bucao’s ending capital balance isa. P 560,000 c. P1,160,000b. P1,000,000 d. P1,360,000