Problem 2The partnership of Lucena Watin and Julie Ann Veloso has come to an end. Upon their urgent request theaccountant prepares the Statement of Financial Position as follows:AssetsLiabilities and Partners' EquityCashP 20,000LiabilitiesP 60,000Inventories80,000L. Watin, LoanL. Watin, CapitalJ. Veloso, CapitalTotal Liabilities & Partners' Equity10,000Furniture & Fixtures100,00040,00090.000P200.000TotalP 200,000Non-cash assets were realized for P85,000. The partner's profit and loss sharing was 60%-40%, respectively.Required:Prepare Statement of Partnership liquidation assuming:1. Watin is a solvent partner.2. Watin is an insolvent partner.3. Journal entry to record the partnership liquidation under the two (2) assumptions.

Partnership- A partnership is an deal where parties, identified as business partners, agree to…

Problem 2 The partnership of Lucena Watin and Julie Ann Veloso has come to an end. Upon their urgent request the accountant prepares the Statement of Financial Position as follows: Assets Liabilities and Partners' Equity Cash P 20,000 Liabilities P 60,000 L. Watin, Loan L. Watin, Capital J. Veloso, Capital Total Liabilities & Partners' Equity Inventories 80,000 100,000 10,000 40,000 90.000 P200.000 Furniture & Fixtures Total P 200.000 Non-cash assets were realized for P85,000. The partner's profit and loss sharing was 60%-40%, respectively. Required: Prepare Statement of Partnership liquidation assuming: 1. Watin is a solvent partner. 2. Watin is an insolvent partner. 3. Journal entry to record the partnership liquidation under the two (2) assumptions.

Problem 2 The partnership of Lucena Watin and Julie Ann Veloso has come to an end. Upon their urgent request the accountant prepares the Statement of Financial Position as follows: Assets Liabilities and Partners' Equity Cash P 20,000 Liabilities P 60,000 L. Watin, Loan L. Watin, Capital J. Veloso, Capital Total Liabilities & Partners' Equity Inventories 80,000 100,000 10,000 40,000 90.000 P200.000 Furniture & Fixtures Total P 200.000 Non-cash assets were realized for P85,000. The partner's profit and loss sharing was 60%-40%, respectively. Required: Prepare Statement of Partnership liquidation assuming: 1. Watin is a solvent partner. 2. Watin is an insolvent partner. 3. Journal entry to record the partnership liquidation under the two (2) assumptions.

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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Make-or-Buy Decision Wisconsin Arts of Milwaukee employs five people in its Publication Department. These people lay out pages for pamphlets, brochures, and other publications for the production. The pages are delivered to an outside company for printing. The company is considering an outside publication service for the layout work. The outside service is quoting a price of $20.00 per layout page. The budget for the Publication Department is as follows: Salaries $180,000 Benefits 52,000 Supplies 34,000 Office expenses 21,000 Office depreciation 60,300 Computer depreciation 40,200 Total $387,500 The department expects to lay out 33,500 pages. The computers used by the department have an estimated residual value of $26,800. The Publication Department office space would be used for future administrative needs if the department's function were purchased from the outside. a. Prepare a differential analysis report for the make-or-buy decision, considering the…
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Ideu, the d. P3,200 b. Р3,920 C. P4,500 d. P17,800 42. liquidate. All assets of the partnership just prior to liquidation follows: were liquidated. The condemsed statement of financial position Assets Cash Other assets liabilities and capital P140, 000 10, 000 45, 000 105, 000 200, 000 P500,000 P100, 000 liabilities Matias, loan Matias, capital Pagayanon, capital Pescasiosa, capital Total 400, 000 Total P500, 000 Other assets were sold for P247, 500 realizing a loss of P152, 500. Parties agreed to fully terminate the partnership's business thus, necessitating distribution of cash to partners and in case of capital deficiency, contribution of additional cash. The three partners were all solvent and could answer any capital deficiency. Name the partner and give the corresponding additional cash he had to invest due to his net capital deficiency to finally settle to the liquidation of the partnership. Pagayanon, P44,000 b Pescasiosa, P30, 500 Matias, P16,000 Matias, P6,000 a C
Subject: accounting
Chapter- Partnership 1. Explain what the problem is with being a general partner in a partnership. 2. In the last entry for a Statement of Liquidation cash is distributed to the partners. How is this done and why? 3. Henry wanted to purchase an interest in a partnership from Bertha. He paid $11,000 to her for the complete interest. The partnership capital account of Bertha showed only $4,000. Record the entry required.
30. Yellow Enterprises reported the following ($ in thousands) as of December 31, 2021. All accounts have normal balances. Deficit (debit balance in retained earnings) Common stock Paid-in capital-share repurchase Treasury stock (at cost) Paid-in capital -excess of par $ 3,000 2,000 1,000 400 30,000 During 2022 ($ in thousands), net income was $9,000; 25% of the treasury stock was resold for $450; cash dividends declared were $600; cash dividends paid were $500. A. $29,600. B. $35,600. C. $30,400. D. $28,600. What ($ in thousands) was shareholders' equity as of December 31, 2021?
QUESTION 1 Kumaresan and Cheng are watch repairmen who want to form a partnership and open a jewellery store. An attorney prepares their partnership agreement, which indicates that assets invested in the partnership will be recorded at their fair market value and that liabilities will be assumed at book value. The assets contributed by each partner and the liabilities assumed by the partnership are as the following: Assets Kumaresan Cheng Total 40,000 52,000 4,000 1,000 20,000 30,000 20,000 3,000 500 70,000 72,000 7,000 1,500 30,000 Cash Accounts receivable Allowance for uncollectable accounts Supplies Equipment Liabilities Accounts payable 10,000 32,000 9,000 41,000 REQUIRED: Prepare the journal entries necessary to record the original investments of Kumaresan and Cheng in the partnership.
Problem #12 Final Cash Distribution to Partners The partnership of Sarabia, Selisana and Gevera is about to be liquidated. All the assets have been sold for cash and the creditors have been fully paid. The capital accounts of the partners have the following balances at the date of liquidation: P600,000 credit 240,000 debit 360,000 credit Sarabia Selisana Gevera The three partners share profits and losses equally. There remains P720,000 cash for distribution to the partners. Required: Determine the manner of distribution of the remaining P720,000 under the following independent assumptions: 1. Selisana is personally insolvent. He has no personal assets. 2. Selisana is personally solvent and is willing to contribute additional funds into the partnership to cover his deficit. 3. Selisana is willing to make additional contributions but his personal assets are not sufficient to accommodate the deficit in his capital account. Only 60% of the deficiency can be covered.
3. Cash Other assets P 28,000 265,000 P 48,000 95,000 80,000 70,000 P 293,000 Liabilities Alex, capital Jay, capital John, capital Total Total P293.000 partnership and liquidate by selling other assets in installments. P70,000 was realized on the se cash sale of other assets with a book value of P150.000, After settlement with creditors, all cash available was distributed to the partners. How much cash was received by John? P10,500 20,000 21,250 32,500 a Partners Arce, Bello and Cruz share profits and losses in the ration of 3:2:1. At the end of a very nprofitable year, they decided to liquidate the firm. The partner's capital account balances at thi me are as follows: P 24, 000; P 27,000; P 17,500. umulate to P32,000, inçluding a loan of P10.000 from