The following condensed balance sheet is for the partnership of Miller, Tyson, and Watson, who share profits and losses in the ratio of6:2:2, respectively:Cashother assetsTotal assets$ 60,000140,000$ 200,000a. Assuming no liquidation expenses, calculate the safe payments that can be made to partners at this point in time.b. For how much money must the other assets be sold so that each partner receives some amount of cash in a liquidation?Required A Required BSafe paymentsLiabilitiesMiller, capitalTyson, capitalWatson, capitalTotal liabilities and capitalComplete this question by entering your answers in the tabs below.> Answer is not complete.MillerS 46,000 $Assuming no liquidation expenses, calculate the safe payments that can be made to partners at this point in time.TysonWatson46,000 $ 46,000$ 51,00066,00066,00017,000$ 200,000Required ARequired B > Complete this question by entering your answers in the tabs below.Required A Required BFor how much money must the other assets be sold so that each partner receives some amount of cash in a liquidation?Other assets must be sold< Required ARequired B >

A partnership is a legal agreement between two or more parties to run a business and split the…

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: Cash other assets Total assets $ 60,000 140,000 $ 200,000 Liabilities Miller, capital Tyson, capital Watson, capital Total liabilities and capital $ 51,000 66,000 66,000 17,000 $ 200,000 a. Assuming no liquidation expenses, calculate the safe payments that can be made to partners at this point in time. b. For how much money must the other assets be sold so that each partner receives some amount of cash in a liquidation?

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: Cash other assets Total assets $ 60,000 140,000 $ 200,000 Liabilities Miller, capital Tyson, capital Watson, capital Total liabilities and capital $ 51,000 66,000 66,000 17,000 $ 200,000 a. Assuming no liquidation expenses, calculate the safe payments that can be made to partners at this point in time. b. For how much money must the other assets be sold so that each partner receives some amount of cash in a liquidation?

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter17: Retirement And Estate Planning

Section17.7: How To Plan For The Distribution Of

Problem 1CC

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The balance sheet for the Delphine, Xavier, and Olivier partnership follows: Cash Noncash assets Total assets $ 75,120 142,000 $ 217,120 Required A Liabilities Delphine, capital Xavier, capital Olivier, capital Total liabilities and capital Delphine, Xavier, and Olivier share profits and losses in the ratio of 4:4:2, respectively. The partners have agreed to terminate the business and estimate that $16,200 in liquidation expenses will be incurred. Complete this question by entering your answers in the tabs below. Required B a. What is the amount of cash that safely can be paid to partners prior to liquidation of noncash assets? b. Calculate the amount of safe payment that can be made to each partner prior to liquidation of noncash assets. 50, 500 80,580 61,000 25,040 $ 217,120 $
Complete this question by entering your answers in the tabs below. Required A Required B Allocate the loss to the partners. Note: Losses and deficits should be indicated with a mintis sign Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) Show Transcribed Text Required A Required B Turner 1/10 Capital balance deficiency 2,500 G 4/10 Complete this question by entering your answers in the tabs below. Roth S 14,000 Lowe S 31,500 $ Determine how much each partner should contribute to the partnership to cover any remaining capital deficiency. Turner Roth Lowe Total 43,000 0 Total
State the method to determine the amounts to be paid to partners in a liquidation.
The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: $ 42,000 37,500 89,500 79,500 69,500 Cash 24 49,000 Liabilities Drysdale, loan Drysdale, capital (50%) Koufax, capital (30%) Marichal, capital (20%) Noncash assets 269,000 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 $28,000. Prepare a predistribution schedule to guide the distribution of cash. Further, modify the tags in explanation as well. b. Assume that assets costing $87,000 are sold for $66,500. How is the available cash to be divided? Complete this question by entering your answers in the tabs below. Req Req Req B 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. Loss…
1. Describe how loans receivable from partners and loans payable to partners are treated in liquidation and why is that necessary? 2.
1. What entry is necessary to reflect interest payable on partner's drawings? a. Partner's Current (Dr.), Profit and Loss Appropriation (Cr.) b. Profit and Loss Appropriation (Dr.), Partner's Current (Cr.) c. Profit and Loss Appropriation (Dr.), Cash (Cr.) d. Profit and Loss Appropriation (Dr.), Partner's Capital (Cr.) 2. What entry is necessary to reflect interest earned on capital account balances? a. Partner's Drawings (Dr.), Partner's Current (Cr.) b. Profit and Loss Appropriation (Dr.), Partner's Drawings (Cr.) c. Partner's Drawings (Dr.), Interest Payable (Cr.) d. Partner's Current (Dr.), Profit and Loss Appropriation (Cr.) 3. A partner's personal gas receipts have been treated as part of the partnership's service vehicle expenses. Which of the following entries is necessary to correct the error? a. Drawings (Dr.), Service vehicle expense (Cr.) b. Service vehicle expense (Dr.), Drawings (Cr.) c. Service vehicle expense (Dr.), Capital…
Non-Cash Assets recorded in the accounting records as $30 sold for $50 during the liquidation process. Consider the following: Easy, Capital Balance $12 Peasy, Capital Balance $13 Gains and Losses are divided equally. How would the partners' capital balances be affected by the sale of the non-cash assets? Group of answer choices a. Peasy's balance would increase by $10 . b. Peasy's balance would decrease by $10 . c. Peasy's balance would increase by $13. d. Peasy's balance would decrease by $13.
Dhapa
The first step in the liquidation of a partnership is to* allocate a gain or loss on realization to the partners. O distribute remaining cash to the partners. O pay partnership liabilities. sell noncash assets and recognize a gain or loss on realization.
In accounting for a withdrawal by payment from partnership assets, which statement is FALSE? O The withdrawing partner may be paid using non-cash assets. O Net assets will decrease O Total capital will decrease. O Asset revaluations should bx recorded.
Partners' withdrawals of assets are: O Credited to their withdrawals account. Debited to their withdrawals account. Credited to their retained earnings account. Debited to their retained earnings account. Debited to their asset accounts.
please answer competely required a,b