RColAVD(20QS 11-15 Partnership liquidation-gain on sale of equipment LO5 excelSam, Andrew, and Mary were partners in Gem Skateboard Company. The partners shared profits and losses 3:2:3, respectively. On April1, 2020, the partnership showed the following account balances just prior to liquidation:Account balances immediatelyprior to liquidation.….........Equipment was sold for $175,000. Prepare the journal entry to record the final distribution of cash.Files to submitSubmit SUAccum.Deprec. Sam, Andrew, Mary,Cash Equipment Equipment Capital Capital CapitalCancel$32,000 $151,000 $36,000 $65,000 $48,000 $34,000

Partnership means where two or more person comes together to run the business and share profit or…

QS 11-15 Partnership liquidation-gain on sale of equipment LO5 eXcel Sam, Andrew, and Mary were partners in Gem Skateboard Company. The partners shared profits and losses 3:2:3, respectively. On April 1, 2020, the partnership showed the following account balances just prior to liquidation: Accum. Deprec. Sam, Andrew, Mary, Cash Equipment Equipment Capital Capital Capital Account balances immediately prior to liquidation......... Equipment was sold for $175,000. Prepare the journal entry to record the final distribution of cash. $32,000 $151,000 $36,000 $65,000 $48,000 $34,000

QS 11-15 Partnership liquidation-gain on sale of equipment LO5 eXcel Sam, Andrew, and Mary were partners in Gem Skateboard Company. The partners shared profits and losses 3:2:3, respectively. On April 1, 2020, the partnership showed the following account balances just prior to liquidation: Accum. Deprec. Sam, Andrew, Mary, Cash Equipment Equipment Capital Capital Capital Account balances immediately prior to liquidation......... Equipment was sold for $175,000. Prepare the journal entry to record the final distribution of cash. $32,000 $151,000 $36,000 $65,000 $48,000 $34,000

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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Problem 5A partnership held three assets: Cash $ 59,000Land $ 48,000Building $ 64,000and liabilities were $ 33,000 The partners decided to dissolve the business and anticipated that expenses required toliquidate their partnership would amount to $ 5,000Capital balances were as follows: King, capital $ 24,000Murphy, capital 30,000Madison, capital 48,000Pond, capital 36,000The partners shared profits and losses 10:20:30:40 respectively.The cash on hand was used to pay the liabilities. Any remaining cash in excess ofthe amount needed for anticipated liquidation expenses was immediatelydistributed to the partners.a. What is the total amount of cash that was immediately available to be distributed to the partners? b. The cash (in item a.) was distributed to each partner in a single payment.Show the total payment amount to each partner. (Show the amount of thesingle check that was written to each partner.) Support your answer with apredistribution plan (or schedule).
Question 5 Allan, Bryan and Catty are partners in a partnership engaging in a food catering business. The terms of the partnership agreement until 30 September 2021 were as follows: Allan Bryan Catty RM RM RM Capital contribution Salary per annum Interest on capital per annum Partners' private expenses 90,000 60,000 105,000 75,000 72,000 54,000 5% 5% 5% 10,000 9,000 7,000 On 30 September 2021, Bryan withdrew as a partner. Upon the withdrawal of Bryan, the interest on capital for Allan and Catty was revised to 4% per year with the other terms remaining the same. The profit or loss is shared equally among the partners throughout the whole year. The provisional adjusted income for the year ended 31 December 2021 was RM280,926. The capital allowance on the plant and machinery was RM4,000. The partnership made a cash donation of RM6,000 to an approved institution on 30 June 2021. Required: Compute the divisible income for the partnership and the total income of the partners for the year of…
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xA A. AaBbCcDdE AaBbCcDdE AaBbCcDc AaBbCcDdEe AaBb( AaBbCcDdEe Normal No Spacing Heading 1 Heading 2 Title Subtitle Styles Pane Dictate Sensitivi 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: $ 31,000 124,000 100,000 Cash Liabilities March, capital April, capital $108,000 59,000 95,000 Accounts receivable 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…
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Acct 102
P 17-8 Installment liquidation—Safe payments schedule Jax, Kya, and Bud, who share partnership profits 50 percent, 30 percent, and 20 percent, respectively, decide to liquidate their partnership. They need the cash from the partnership as soon as possible but do not want to sell the assets at fire-sale prices, so they agree to an installment liquidation. A summary balance sheet on January 1, 2016, is as follows: Cash $ 16,500 Accounts payable $ 21,000 Accounts receivable 28,000 Jax capital 69,000 Inventory 20,500 Kya capital 47,000 Equipment—net 101,000 Bud capital 43,000 Loan to Jax 14,000 $180,000 $180,000 Cash is distributed to the partners at the end of each month, with $5,000 retained for possible contingencies in the liquidation process. During January 2016, Jax agreed to offset his capital balance with his loan from the partnership, $25,000 was collected on the accounts receivable, and the balance is…
ded Exercise 11-5 Profit allocation in a partnership LO3 Dallas and Weiss formed a partnership to manage rental properties, by investing $171,000 and $209,000, respectively. During its first year, the partnership recorded profit of $486,000. Required: Prepare calculations showing how the profit should be allocated to the partners under each of the following plans for sharing profit and losses: a. The partners failed to agree on a method of sharing profit. Share to Share to Total
Required information Problem 12-3A (Algo) Allocating partnership income LO P2 Skip to question [The following information applies to the questions displayed below.] Ries, Bax, and Thomas invested $58,000, $74,000, and $82,000, respectively, in a partnership. During its first calendar year, the firm earned $361,500. Required: Prepare the entry to close the firm’s Income Summary account as of its December 31 year-end and to allocate the $361,500 net income under each of the following separate assumptions.
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