The ETO Partnership is in the process of liquidation. The account balances prior to liquidation are given below: Debits Credits Cash P 72,000 Liabilities Aurora, drawing Esteban, drawing Tyro, drawing Operating loss 10,000 15,000 20,000 21,000 12,000 Esteban, loan Туго, loan Aurora, capital Esteban, capital Туго, сapital P 40,000 8,000 25,000 49,000 18,000 Loss on realization 10,000 The partners share profits in the following ratio: Aurora, 1/6; Esteban, 2/6; and Tyro, 3/6. Upon liquidation of the partnership, Aurora should have received:

The ETO Partnership is in the process of liquidation. The account balances prior to liquidation are given below: Debits Credits Cash P 72,000 Liabilities Aurora, drawing Esteban, drawing Tyro, drawing Operating loss 10,000 15,000 20,000 21,000 12,000 Esteban, loan Туго, loan Aurora, capital Esteban, capital Туго, сapital P 40,000 8,000 25,000 49,000 18,000 Loss on realization 10,000 The partners share profits in the following ratio: Aurora, 1/6; Esteban, 2/6; and Tyro, 3/6. Upon liquidation of the partnership, Aurora should have received:

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Ichigo, Inuoe, and Byakuya are partners dividing profit and losses of the partnership in the agreed ratio of 1:2:3. The following are the ledger balances at the start of liquidation: Cash P 50,000 Accounts payable P120,000 Noncash 670,000 Loans payable – Inuoe 10,000 Loans Receivable – Ichigo 30,000 Loans payable – Byakuya 20,000 Ichigo, Capital 150,000 Inuoe, Capital 200,000…
The E.N.D. partnership has the following capital balances as of the end of the current year: Pineda Adams Fergie Gomez Total capital Answer each of the following independent questions: a. Assume that the partners share profits and losses 3:3:2:2, respectively. Fergie retires and is paid $270,000 based on the terms of the original partnership agreement. If the goodwill method is used, what is the capital balance of the remaining three partners? b. Assume that the partners share profits and losses 4:3:2:1, respectively. Pineda retires and is paid $350,000 based on the terms of the original partnership agreement. If the bonus method is used, what is the capital balance of the remaining three partners? (Do not round your Intermediate calculations. Round your final answers to the nearest dollar amounts.) a. Pineda Adams $ 300,000 260,000 230,000 210,000 $1,000,000 Gomez b. Adams Fergie Gomez Capital Balance
Your book also talks about the liquidation process of a partnership. According to your text, there are four process steps in winding down a partnership's operations. What are they? List and describe them. (does not a long answer)
The topic is about Partnership Liquidation. Based on the problem on the picture, choose the letter of correct answer; In November, Sarrah and Sapphira should receive: Sarrah Sapphira a. 45,000 67,500 b. 45,000 0 c. 0 67500 d. 81,500 103,500
Allan, one of the partners in the ABC Partnership, decided to retire. In so doing, Bobby and Carlo revised the Articles of Co-Partnership to effect Allan's withdrawal and admit Dan. This transaction is a/an reformation. incorporation O. dissolution O liquidation
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The Field, Brown & Snow are partners and share income and losses equality. The partner decide to liquidate the partnership when their capital balances are as follows: Field, $131,250; Brown, $165,000; and Snow, $153,750. On May 31, the liquidation resulted in a loss of $405,000. 3. Assume that the partner with a deficit does not reimburse the partnership. Prepare journal entries (a) to transfer the deficit to the other partners and (b) to record the final disbursement of cash to the partners.
A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are Bell, capital $ 65,000 Hardy, capital 62,000 Dennard, capital 14,000 Suddath, capital 86,000 Bell’s creditors have filed a $27,000 claim against the partnership’s assets. The partnership currently holds assets of $360,000 and liabilities of $133,000. If the assets can be sold for $220,000, what is the minimum amount that Bell’s creditors would receive?
A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are Bell’s creditors have filed a $21,000 claim against the partnership’s assets. The partnership currently holds assets of $300,000 and liabilities of $100,000. If the assets can be sold for $190,000, what is the minimum amount that Bell’s creditors would receive? –0– $2,000 $2,800 $6,000
er to liquidating their partnership, Craig and Jenny had capital accounts of $77,260 and $108 23,230. The partnership had $22,940 of liabilities. Craig and Jenny share income and losses termine the amount received by Jenny as a final distribution from liquidation of the partnersh
The E.N.D. partnership has the following capital balances as of the end of the current year: Pineda 160,000 Adams 140,000 Fergie 130,000 Gomez 120,000 Answer each A. Assume that the partners and losses 3:3:2:2,respectively. Fergie retires and is paid 151,000 based on the terms of the orginal partnership agreement. If the Goodwill method is used;what is the capital of the remaining three partners? B. Assume that the partners share profit and losses 4:3:2:1, respectively. Peneda retires and is paid 305,000 based on the terms of the orginal partnership agreement. If the bonus method is used, what is the capital balance of the remaining three partners? (Do not round intermediate calculations. Round to the nearest amounts. A. Pineda capital Balance__________ Adams capital Balance__________ Gomez capital Balance__________ B. Pineda capital Balance__________ Adams capital Balance__________ Gomez capital Balance__________
After the tangible assets have been adjusted to current market prices, the capital accounts of Grayson Jackson and Harry Barge have balances of $64,900 and $86,500, respectively. Lewan Gorman is to be admitted to the partnership, contributing $43,300 cash to the partnership, for which he is to receive an ownership equity of $50,500. All partners share equally in income. a. Journalize the entry to record the admission of Gorman, who is to receive a bonus of $7,200. If an amount box does not require an entry, leave it blank. Cash Grayson Jackson, Capital Harry Barge, Capital Lewan Gorman, Capital b. What are the capital balances of each partner after the admission of the new partner? Partner Balance Grayson Jackson $ Harry Barge $ Lewan Gorman $

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