The assets and equities of the Queen, Reed, and Stac Partnership at the end of its fiscal year on October 31, 20x5 are as follows: Assets: Liabilities and Equity: Liabilities... Cash.. .15,000 .50,000 Receivable – net.. Inventory... Plant assets - net. Loan to Reed. ..20,000 Loan from Stac. .10,000 ..40,000 .70,000 Queen, capital – 30%.. Reed, capital - 50%.. Stac, capital – 20%.. Total Liabilities & Equity.. .45,000 .30,000 5,000 150,000 15,000 .150,000 Total assets... The partners decide to liquidate the partnership. They estimate that the noncash assets, other than the loan to Reed, can be converted into P100,000 cash over the two-months period ending December 31, 20x5. Cash is to be distributed to the appropriate parties as it becomes available during the liquidation process. The partner most vulnerable to partnership losses on liquidation is:
The assets and equities of the Queen, Reed, and Stac Partnership at the end of its fiscal year on October 31, 20x5 are as follows: Assets: Liabilities and Equity: Liabilities... Cash.. .15,000 .50,000 Receivable – net.. Inventory... Plant assets - net. Loan to Reed. ..20,000 Loan from Stac. .10,000 ..40,000 .70,000 Queen, capital – 30%.. Reed, capital - 50%.. Stac, capital – 20%.. Total Liabilities & Equity.. .45,000 .30,000 5,000 150,000 15,000 .150,000 Total assets... The partners decide to liquidate the partnership. They estimate that the noncash assets, other than the loan to Reed, can be converted into P100,000 cash over the two-months period ending December 31, 20x5. Cash is to be distributed to the appropriate parties as it becomes available during the liquidation process. The partner most vulnerable to partnership losses on liquidation is:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
A. Queen
B. Reed
C. Reed and Queen equally
D. Stac
Transcribed Image Text:The assets and equities of the Queen, Reed, and Stac Partnership at the end of its fiscal year on
October 31, 20x5 are as follows:
Liabilities and Equity:
Liabilities...
Assets:
Cash....
.15,000
.20,000
.50,000
Receivable – net.
Inventory..
Plant assets - net.
Loan from Stac.
.10,000
Queen, capital – 30%.
Reed, capital – 50%..
Stac, capital – 20%..
Total Liabilities & Equity..
40,000
..45,000
.70,000
30,000
Loan to Reed.
Total assets...
5,000
150,000
15,000
..150,000
The partners decide to liquidate the partnership. They estimate that the noncash assets, other than
the loan to Reed, can be converted into P100,000 cash over the two-months period ending
December 31, 20x5. Cash is to be distributed to the appropriate parties as it becomes available
during the liquidation process. The partner most vulnerable to partnership losses on liquidation is:
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