The Henry, Isaac, and Jacobs partnership was about to enter liquidation with the following account balances: Cash Noncash assets Total $ 90,000 300,000 $390,000 Liabilities Henry, capital Isaac, capital Jacobs, capital Total $ 60,000 80,000 110,000 140,000 $390,000 Estimated expenses of liquidation were $5,000. Henry, Isaac, and Jacobs shared profits and losses in a ratio of 2:4:4. Before liquidating any assets, the partners determined the amount of cash available for safe payments. How should the amount of safe cash payments be distributed?
The Henry, Isaac, and Jacobs partnership was about to enter liquidation with the following account balances: Cash Noncash assets Total $ 90,000 300,000 $390,000 Liabilities Henry, capital Isaac, capital Jacobs, capital Total $ 60,000 80,000 110,000 140,000 $390,000 Estimated expenses of liquidation were $5,000. Henry, Isaac, and Jacobs shared profits and losses in a ratio of 2:4:4. Before liquidating any assets, the partners determined the amount of cash available for safe payments. How should the amount of safe cash payments be distributed?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The Henry, Isaac, and Jacobs partnership was about to enter liquidation with the following account balances:
Cash
Noncash assets
Total
Multiple Choice
O
$ 90,000
300,000
O
$390,000
Estimated expenses of liquidation were $5,000. Henry, Isaac, and Jacobs shared profits and losses in a ratio of 2:4:4.
Before liquidating any assets, the partners determined the amount of cash available for safe payments. How should the amount of safe cash payments be distributed?
Liabilities
Henry, capital
Isaac, capital
Jacobs, capital
Total
In a ratio of 2:4:4 among all the partners.
$18,333 to Henry and $16,667 to Jacobs.
In a ratio of 1:2 between Henry and Jacobs.
$15,000 to Henry and $10,000 to Jacobs.
$ 60,000
80,000
110,000
140,000
$390,000
$21,667 to Henry and $3,333 to Jacobs.
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