The balance sheet for the Delphine, Xavier, and Olivier partnership follows: Cash $ 65,040 Liabilities $ 43,500 Noncash assets 114,000 Delphine, capital 54,120 Xavier, capital 47,000 Olivier, capital 34,420 Total assets $ 179,040 Total liabilities and capital $ 179,040 Delphine, Xavier, and Olivier share profits and losses in the ratio of 3:4:3, respectively. The partners have agreed to terminate the business and estimate that $13,400 in liquidation expenses will be incurred. Required: What is the amount of cash that safely can be paid to partners prior to liquidation of noncash assets? Calculate the amount of safe payment that can be made to each partner prior to liquidation of noncash assets.

The balance sheet for the Delphine, Xavier, and Olivier partnership follows: Cash $ 65,040 Liabilities $ 43,500 Noncash assets 114,000 Delphine, capital 54,120 Xavier, capital 47,000 Olivier, capital 34,420 Total assets $ 179,040 Total liabilities and capital $ 179,040 Delphine, Xavier, and Olivier share profits and losses in the ratio of 3:4:3, respectively. The partners have agreed to terminate the business and estimate that $13,400 in liquidation expenses will be incurred. Required: What is the amount of cash that safely can be paid to partners prior to liquidation of noncash assets? Calculate the amount of safe payment that can be made to each partner prior to liquidation of noncash assets.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 1PB: The partnership of Magda and Sue shares profits and losses in a 50:50 ratio after Mary receives a...

See similar textbooks

Required:

What is the amount of cash that safely can be paid to partners prior to liquidation of noncash assets?
Calculate the amount of safe payment that can be made to each partner prior to liquidation of noncash assets.

Definition Definition Amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

The partnership of Magda and Sue shares profits and losses in a 50:50 ratio after Mary receives a $7,000 salary and Sue receives a $6,500 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $10,000 B. $5,000 C. ($12,000) In addition, show the resulting entries to each partners capital account.
The following condensed balance sheet is for the partnership of Gulian, Singh, and Zahiri, who share profits and losses in the ratio of 4:3:3, respectively: Cash Other assets Gulian, loan Total assets $ 80,000 750,000 31,000 Beginning balances Sold assets $ 861,000 Accounts payable Zahiri, loan Gulian, capital Singh, capital Zahiri, capital Total liabilities and capital Required: The partners decide to liquidate the partnership. Fifty percent of the other assets are sold for $260,000. Prepare a proposed schedule of liquidation at this point in time. Note: Amounts to be deducted should be entered with a minus sign. Adjusted balances Max loss on remaining noncash assets Paid liabilities Safe payments GULIAN, SINGH, AND ZAHIRI Proposed Schedule of Liquidation Cash Other Assets Accounts Payable $ 280,000 41,000 250,000 150,000 140,000 $ 861,000 Gulian, Loan and Capital Singh, Capital Zahiri, Loan & Capital
Questions are indicated
Following is the condensed balance sheet of Martinez, O'Neill and Clemens, partners who share profits or losses in the ratio of 2 : 3 : 5. Cash $38,400 Liabilities $160,000 Other assets 601,600 Capital - Martinez 86,400 Capital - O'Neill 140,800 Capital - Clemens 252,800 Total assets $640,000 Total liabilities and capital $640,000 (a) Assume that the partnership's assets and liabilities are fairly valued as shown. The partners wish to admit Jeter as a partner with a 30 percent interest in capital, profits, and losses. They require Jeter to invest an amount such that bonus or goodwill adjustments are not needed. How much should Jeter invest for the 30 percent share? (Round your answer to two decimal places.)$Answer(b) Assume instead that the existing partners, all of whom contemplate retirement relatively soon, decide to sell Jeter 30 percent of their respective partnership interests for a total payment of $168,000. This payment will be made proportionately to…
Problem: The following statement of financial position is presented for the partnership of Maia, Cheska and Chinchin who shares profits and losses in the ratio of 5:3:2 respectively. ASSETS LIABILITIES AND EQUITY Cash P120,000.00 Liabilities P280,000.00 Other assets 1,080,000.00 Maia, Equity 560,000.00 Cheska, Equity 320,000.00 Chinchin, Equity 40,000.00 P1,200,000.00 P1,200,000.00 Question No. 4. Assume that the assets and liabiities are fairly valued on the statement of financial position and the partnership decided to admit Joco as a new partner with a 1/5 interest. No goodwill or bonus is to be recorded. How much should Joco contribute in cash or other assets? a. P240,000.00 b. P230,000.00 c. P184,000.00 d. P147.200.00 e. None of these. Question No. 5. Assume tha instead of admitting a new partner, the partners decided to liquidate the partnership. If the other assets are sold for P800,000.00, how should the available cash be distributed to each partner? a. Maia, P280,000.00;…
The following condensed balance sheet is presented for the partnership of Nick, Pick, and Nick, who share profits and losses in the ratio 4:3:3, respectively: Cash P 45,000 Accounts payable P 105,000 Other assets 415,000 Rick, loan 15,000 Nick, loan 10,000 Nick, capital 155,000 Pick, capital 100,000 Rick, capital 95,000 P 470,000 P 470,000 Assume that the assets and liabilities are fairly valued on the balance sheet and that the partnership decides to admit Tick as a partner, with a 20% interest. No goodwill or bonus is to be recorded. How much should Tick contribute in cash or other assets? Assume that instead of admitting a new partner, the partners decide to liquidate the partnership. If the other assets are sold for P350,000, how much cash should be distributed to Nick?
The following condensed statement of financial position is presented for the partnership of Morales, Gamino, and Quito, who share profits and losses in the ratio of 4:3:3, respectively. Cash 40,000 Accounts Payable 150,000Other assets 710,000 Morales, capital 260,000 Gamino, capital 180,000 Quito, capital 160,000Total assets 750,000 Total Liabilities & Capital 750,000Assume that the partnership decided to admit abello as a new partner with a one fourth interest.Required:For each of the following independent cases, determine the amount that abello must contribute in cash or other assets.1. No goodwill or bonus will be recorded. 2. A bonus of P24,000 is to be paid by abello and allocated to the prior partners. 3. The partners agreed that total resulting capital should be P820,000 and no goodwill should…
The following condensed balance sheet is for the partnership of Miller, Tyson, and Watson, who share profits and losses in the ratio of 6:2:2, respectively: 50, e00 150,000 Cash Liabilities 42, еее 69,000 $ Miller, capital Tyson, capital Watson, capital Other assets 69, 000 20,000 Total assets $ 200, e00 Total liabilities and capital $ 200,000 For how much money must the other assets be sold so that each partner receives some amount of cash in a liquidation? X Answer is not complete. Other assets must be for an amount over sold
The following condensed balance sheet is presented for the partnership of Nick, Pick, andNick, who share profits and losses in the ratio 4:3:3, respectively: Cash P 45,000 Accounts payable P 105,000 Other assets 415,000 Rick, loan 15,000 Nick, loan 10,000 Nick, capital 155,000 Pick, capital 100,000 Rick, capital 95,000 P 470,000 P 470,000 Questions: 1. Assume that the assets and liabilities are fairly valued on the balance sheet and that thepartnership decides to admit Tick as a partner, with a 20% interest. No goodwill or bonusis to be recorded. How much should…
The following condensed balance sheet is presented for the partnership of Der, Egan, and Oprins, who share profits and losses in the ratio of 4:3:3, respectively. Cash $ 40,000 Accounts Payable $ 150,000 Other Assets 710,000 Der, Capital 260,000 Egan, Capital 180,000 Oprins, Capital 160,000 Total Assets $750,000 Total Liabilities and Capital $ 750,000 Assume that the partnership decides to admit Snider as a new partner with a 25 percent interest. g. Other assets are revalued down by $20,000 and a bonus of $40,000 is paid to Snider at the time of admission. CREATE THE FOLLOWING JOURNAL ENTRY PLEASE: Record the revaluation of the assets and the allocation of the loss to the partners
The partnership of Nott and Reese reports net income of P6o,000. The partners share equally in income and losses. The entry to record the partners' share of net income will include a* credit to Income Summary for P60,000. credit to Nott, Capital for P30,000. debit to Reese, Capital for P30,000. credit to Reese, Drawing for P30,000.
please answer do not image format

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

SEE MORE TEXTBOOKS

GET THE APP

About FAQ Academic Integrity Sitemap Document Sitemap

Contact Bartleby Contact Research (Essays)High School Textbooks Literature Guides Concept Explainers by Subject Essay Help Mobile App

GET THE APP

Privacy

Your CA Privacy Rights

Your NV Privacy Rights

Cookie Policy

About Ads

Manage My Data

bartleby, a Learneo, Inc. business

Cash	$ 65,040	Liabilities	$ 43,500
Noncash assets	114,000	Delphine, capital	54,120
		Xavier, capital	47,000
		Olivier, capital	34,420
Total assets	$ 179,040	Total liabilities and capital	$ 179,040