The partners of Grafton Company have decided to liquidate their business.Noncash assets were sold for $115,000. The income ratios of the partners KaleD., Croix D., and Marais K. are 2:3:3, respectively. Complete the followingschedule of cash payments for Grafton Company. DO IT! 3a: PartnershipLiquidation No Capital Deficiency (Solution) Gafton Company Schedule of CashPayments \table [[Item, Cash,+, \table[[Noncash], [Assets]],, Liabilities,, \table [[ DO IT! 3a: Partnership Liquidation-No Capital Deficiency (Solution)ItemBalances beforeliquidationSale of noncashassets andallocation of gainNew balancesPay liabilitiesNew balancesCash distribution topartnersFinal balancesCash+10,000 +O+++Gafton CompanySchedule of Cash PaymentsNoncashKale D.,Croix D.,Assets = Liabilities + Capital + Capital +85,000 =O||1111||1140,000 +0++15,000 + 35,000 +0+++O++++Marais K.,Capital5,0000

Partnership liquidation is the process of ending a partnership and distributing its assets.During…

Answered: The partners of Grafton Company have…

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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On December 31 , 2016 , the balance sheet of CDO Partnership is as follows : Cash 15,360 Noncash Assets 271,360 Accounts Payable 51,200 Loan Payable to Dorie 20,480 Cherry , Capital 49,152 Dorie Capital 73,728 Oscar , Capital 92.160 Profit and losses were shared as follows Cherry, 30 % Dorie, P30 % and Oscar, 40 % It was decided to liquidate the business The following is a summary of the realization and liquidation Expense activities. Assumptions : Required : Make a statement of Liquidation. A. The company will undergo Instalment liquidation. The assets are realized as follows: Period - BV OF ASSETS. 1st 133120 2nd 76800 3rd 61440 CASH PROCEEDS 81920 51200 35840 Required: Make a statement of liquidation and schedule of payments for the 1st and 2nd Period.
The capital balances and profit and loss ratios in ABC Partnership on December 31 are as follows: Partner Capital Balance Profit and Loss Ratio A. Alpha $72,000 60% B. Bravo $29,650 30% C. Charlie $24,000 10% Charlie is withdrawing from the company. Instructions: Journalize the withdrawal of Charlie under each of the following independent assumptions: a. Using personal funds, Bravo agrees to purchase Charlie's ownership interest for $29,000 cash. b. Charlie is paid $29,000 from partnership assets. c. Charlie is paid $19,100. Round amounts to the nearest dollar. Show ALL calculations for full marks.
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RST partnership begins the liquidation process with the following balance sheet and profit and loss percentages Cash 280,000 Liabilities 200,000 Noncash Assets 300,000 R Capital (40%) 100,000 S Capital (30%) 150,000 T Capital (30%) 130,000 Liquidation expenses are estimated at $50,000. Assume any deficit balance in a partner’s capital account will not be repaid. What is the safe payment that can be made to partner T. answer please
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Victory Worship Partnership has the following account balances before liquidation (see attached photo):During December, some non-cash assets were sold for a loss of P1,845. Liquidation expenses of P7,000 were paid and additional expenses amounting to P3,600 were expected to be incurred through the following months of liquidating the partnership. Liabilities to outsiders amounting to P35,000 were paid. What is the book value of non-cash assets sold for Co to receive P22,222? A. 83,355 B. 85,200 C. 95,000 D. 93,155
On December 31, 2020, the partnership of Abe, Bravo, Charlie, and Delta decided to liquidate the following account balances: Cash NCA Liab. Bravo Charlie Abe Bravo Charlie Delfin Loan Loan (10%) (20%) (45%) (25%) 20,000 180,000 100,000 10,000 5,000 15,000 25,000 15,000 30,000 Assuming that that Bravo and Charlie are limited partners and Abe, Bravo, Charlie and Delfin are solvent up to 10,000; 15,000; 10,000; and 5,000 respectively; determine the cash settlement given to Abe if the NCAs were sold for 100,000
Chen, Korhonen, Lebuca, and Swid are partners who share profits and losses on a 4:3:2:1 basis, respectively. They are beginning to liquidate the business. At the start of this process, capital balances are Chen, capital Korhonen, capital Lebuca, capital Swid, capital $ 60,000 27,000 43,000 20,000 Required: Prepare a predistribution plan to determine which partner will be the first to receive cash from the liquidation and what amount that partner will receive before other partners receive any cash. Note: Amounts to be deducted should be entered with a minus sign. Beginning balances Assumed loss Balances Assumed loss Balances Assumed loss Balances $ Chen Korhonen 60,000 $ Lebuca 27,000 $ 43,000 $ Swid 20,000:
Following is a series of independent cases. In each situation, indicate the cash distribution to be made to partners at the end of the liquidation process. Unless otherwise stated, assume that all solvent partners will reimburse the partnership for their deficit capital balances. Part A The Buarque, Monte, and Vinicius partnership reports the following accounts. Vinicius is personally insolvent and can contribute only an additional $34,000 to the partnership. Cash $ 155,000 Liabilities 60,000 Monte, loan 70,000 Buarque, capital (50% of profits and losses) 22,000 Monte, capital (25%) 43,000 Vinicius, capital (25%) (40,000 ) (deficit) Part B Drawdy, Langston, and Pearl operate a local accounting firm as a partnership. After working together for several years, they have decided to liquidate the partnership’s property. The partners have prepared the following balance sheet: Cash $ 45,000 Liabilities $ 59,500…
Kindly read and follow the instructions before you answer. 1. Solutions must be in GOOD ACCOUNTING FORM. | 2. Round off Answers to WHOLE NUMBERS, unless specific instruction was provided. Partners Percy, May and Anne have decided to liquidate their partnerships. The partnerships Statement of Financial Position reveals the following: Assets Liabilities and Capital P 250,000 P 300,000 900,000 1,200,000 350,000 Cash Noncash Assets 2,500,000 Percy, capital (4 Liabilities | (40%) May, capital (40%) Anne, capital (20%) Total Liabilities & Capital P 2,750,000 Total Assets P 2,750,000 All partners are personally solvent. Anne received P490,000 in cash in full settlement for her share in the partnership. What was the selling price for the other assets?
rame and French are in partnership sharing profits and losses in the ratio 3/5: 2/5. respectively y
The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: Cash Noncash assets Req A1 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 $19,000. Prepare a predistribution schedule to guide the distribution of cash. Further, modify the tags in explanation as well. b. Assume that assets costing $78,000 are sold for $62,000. How is the available cash to be divided? Complete this question by entering your answers in the tabs below. Step 1 $ 40,000 224,000 Partner Capital Balance Drysdale Koufax Marichal 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. Step 2 Liabilities Drysdale, loan Drysdale, capital (50%) Koufax, capital (30%) Marichal,…

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