Do not use Ai The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation:Cash$ 44,000 Liabilities$ 44,500Noncash assets244,000 Drysdale, loan27,500Drysdale, capital (50%)82,000Koufax, capital (30%)72,000Marichal, capital (20%)62,000a. Liquidation expenses are estimated to be $23,000. Prepare a predistribution schedule to guide the distribution of cash.b. Assume that assets costing $82,000 are sold for $64,000. How is the available cash to be divided?

Explanation is stated already in the table. I hope I answered all the questions, Thank you and don't…

Answered: The Drysdale, Koufax, and Marichal…

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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The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: Cash $ 37,000 Liabilities $ 49,000 Noncash assets 209,000 Drysdale, loan 12,500 Drysdale, capital (50%) 71,500 Koufax, capital (30%) 61,500 Marichal, capital (20%) 51,500 a-1. Determine the maximum loss that can be absorbed in Step 1. Then, assuming that this loss has been incurred, determine the next maximum loss that can be absorbed in Step 2. a-2. Liquidation expenses are estimated to be $16,000. Prepare a predistribution schedule to guide the distribution of cash. Further, modify the tags in explanation as well. b. Assume that assets costing $75,000 are sold for $60,500. How is the available cash to be divided?
The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: Liquidation expenses are estimated to be $15,000. Prepare a predistribution schedule to guide the distribution of cash. Assume that assets costing $74,000 are sold for $60,000. How is the available cash to be divided?
The ABC Partnership is to be liquidated. The ledger shows the following: Cash $ 70,000 Noncash Assets 220,000 Liabilities 90,000 A, Capital 85,000 B, Capital 90,000 C, Capital 25,000 A,B, and C's income ratios are 5:3:2, respectively. The non-cash assets are sold for $170,000. Instructions Prepare a schedule of liquidation using the following chart: Cash NC assets Liabilities A, Cap B, Cap C, Cap Beg Balance Sale of assets Balance Pay liabilities Balance Distribute cash End Balance Prepare the 4…
Use the following information for the next two questions: Farewell Partnership is undergoing liquidation. Information on Farewell follows: Cash 40,000 Accounts receivable 180,000 Receivable from B 10,000 Inventory 160,000 Equipment 310,000 Total 700,000 Accrued liabilities 250,000 Payable to A 20,000 A, Capital (60%) 240,000 B, Capital (40%) 190,000 Total 700,000 Case #1: Lump-sum liquidation Information on the conversion of non-cash assets is as follows: Only 60% of the accounts receivable was collected; the balance is uncollectible. ₱50,000 was received for the entire inventory. The equipment was sold at its carrying amount. ₱10,000 Liquidation expenses were paid. Requirement: Determine the amounts of cash distributed to the partners in the final settlement of their capital…
A balance sheet for the partnership of A, B, and C, who share profits 2:1:1, shows the following balances just before liquidation: Cash: P48,000 Other assets: 238,000 Liabilities: 80,000 A, Capital: 88,000 B, Capital: 62,000 C, Capital: 56,000 On the first month of liquidation, certain non-cash assets were sold resulting to a loss of P23,000. Liquidation expenses of P4,000 were paid, and additional liquidation expenses of P3,200 are withheld to anticipate payment before liquidation is completed. After creditors were paid, partner B received P13,000 on the initial installment. Determine the total book value of the non-cash assets on the first month.
A balance sheet for the partnership A, B and C, who share profits 2:1:1 respectively, shows the following balances just before liquidation: Cash - 48,000Other Assets - 238,000Liabilities - 80,000A Capital - 88,000 B Capital - 62,000C Capital - 56,000On the first month of liquidation, certain non-cash assets were sold resulting to a loss of 23,000. Liquidation expense of 4,000 were paid, and additional liquidation expenses of 3,200 are withheld to anticipate payment before liquidation is completed. After creditors were paid, partner B received 13,000 on the initial installment. Determine the total book value of the non-cash assets on the first month.
A balance sheet for the QRS Partnership, which shares profits and losses in the ratio of 5:3:2 shows the following balances just before liquidation: Cash, P30,000; Other assets, P148,750; Liabilities, P50,000; Q, Capital, P55,000; R, Capital, P38,750; and S Capital, P35,000. On the first month of liquidation, certain assets are sold for P80,000. Liquidation expenses of P2,500 is paid, and additional expenses are anticipated. Liabilities are paid amounting to P13,500, and sufficient cash is retained to ensure payment to creditors before making payment to partners. On the payments to partners, Q receives P15,625. Calculate the amount of cash withheld for anticipated liquidation expenses.
Pepe, Pilar and Paz Partnership showed the following financial position on June 30, 2020, the date of liquidation: Assets Cash P20,000.00 Receivable from Paz 30,000.00 Other noncash assets 650,000.00 P700,000.00 Liabilities and Equity Accounts Payable P150,000.00 Notes Payable 260,000.00 Loans Payable to Pilar 65,000.00 35,000.00 Рере, Саpital Pilar, Capital Paz, Capital 70,000.00 120,000.00 P700,000 00 0.00 The partners share profits and losses equally. The other assets were sold for P530 000 00. Liquidation Expense of P60,000 were paid. The partners' personal record shows the following ing Personal TS, 30 Assets Personal Liabilities Pepe (general Partner) P100 000 00 P50 000 00 22) 200 .000 00
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A Statement of Financial Position for the partnership of John, Paul and Ryan, who share profits in the ratio of 2:1:1, shows the following balances just before liquidation: Assets Cash Other assets Liabilities and Equity Liabilities 240,000 P 144,000 714,000 John, capital 264,000 186,000 Paul, capital Ryan, capital 168,000 In the first month of liquidation, certain assets are sold for P384,000. Liquidation expenses of P12,000 are paid, and additional expenses are anticipated. Liabilities of P64,800 are paid and sufficient cash is retained for the anticipated liquidation expenses. In the first payment to partners, John receives P60,000. How much is the theoretical losses in the first month of liquidation? P
A. The Abrams, Bartle, and Creighton partnership began the process of liquidation with thefollowing balance sheet: Cash $16,00 Non cash Assets $434,000 Liabilities $150,000 Abrams Capital $80,000 Bartle Capital $90,000 Creighton Capital $130,000 Abrams, Bartle, and Creighton share profits and losses in a ratio of 3:2:5. Liquidation expenses are expected to be $12,000.1. If the non-cash assets were sold for $234,000, what amount of the loss would have been allocated to Bartle?2. If the non-cash assets were sold for $134,000, which partner(s) would have had to contribute assets to the partnership to cover a deficit in his/her capital account?3. After the liquidation expenses of $12,000 were paid and the non-cash assets sold, Creighton had a deficit of $8,000. For what amount were the non-cash assets sold?
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