The balance sheet of Joy, Berry, Jaz as of December 31, 2010 and the profit and loss sharing ratio isas followsCash$240,000,000Joy's Capital (30%)$200,000,000Other assets360,000,000Berry Capital (30%)170.000.000Jazz Capital (40%)230,000,000Total600,000,000600,000,000Berry resigns from the partnership and the partners agree that he must receive $200 million in cashas payment for his interest in the assets of the partnership. If the goodwill arising from thesettlement of Berry is recorded in the partnership books, the total assets of the partnership afterBerry's exit are:a). 430.000.000b). 566,666,667c).400,000,000d). 500,000,000

Berry's capital = 170000000 Profit sharing ratio 30:30:40

Answered: The balance sheet of Joy, Berry, Jaz as…

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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A partnership has liquidated all assets but still reports the following account balances for its partners: Beck, loan $ 9,500 Cisneros, capital (40%) 3,000 Beck, capital (20%) (13,000 ) (deficit) Sadak, capital (10%) (9,000 ) (deficit) Emerson, capital (20%) 14,500 Page, capital (10%) (7,000 ) (deficit) The partners split profits and losses as follows: Cisneros, 40 percent; Beck, 20 percent; Sadak, 10 percent; Emerson, 20 percent; and Page 10 percent. Assuming that Cisneros, Beck, and Page are personally insolvent, how much cash must Sadak now contribute to this partnership? (Do not round intermediate calculations. Round the final answer to nearest dollar amounts.)
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