The partnership of Dale, Edgar, and Fred was dissolved, and by July 1, 2016, all assets had been converted into cash and all partnership liabilities were paid. The partnership balance sheet on July 1, 2016 (with partner residual profit and loss sharing percentages) was as follows: Cash P 10,000 Fred, capital(30%) Dale, capital(40%) Edgar, capital(30%) 40,000 (20,000) (10,000) Total assets 10,000 Total equity P 10,000 The value of partners' personal assets and liabilities on July 1, 2016 were as follows: Dale Edgar 30,000 P 20,000 Fred Personal assets Personal liabilities 45,000 P 30,000 P 25,000 10,000 Required: 1. Problem 1 - How much is Dale's maximum personal contribution to pay for his deficit capital? 2. Problem 1 - How much is Edgar's maximum personal contribution to pay for his deficit capital? 3. Problem 1 - How much is Fred's maximum personal contribution to pay for his deficit capital? 4. Problem 1 - How much will Fred receive upon liquidation after considering the personal contributions of Dale and Edgar? P.

The partnership of Dale, Edgar, and Fred was dissolved, and by July 1, 2016, all assets had been converted into cash and all partnership liabilities were paid. The partnership balance sheet on July 1, 2016 (with partner residual profit and loss sharing percentages) was as follows: Cash P 10,000 Fred, capital(30%) Dale, capital(40%) Edgar, capital(30%) 40,000 (20,000) (10,000) Total assets 10,000 Total equity P 10,000 The value of partners' personal assets and liabilities on July 1, 2016 were as follows: Dale Edgar 30,000 P 20,000 Fred Personal assets Personal liabilities 45,000 P 30,000 P 25,000 10,000 Required: 1. Problem 1 - How much is Dale's maximum personal contribution to pay for his deficit capital? 2. Problem 1 - How much is Edgar's maximum personal contribution to pay for his deficit capital? 3. Problem 1 - How much is Fred's maximum personal contribution to pay for his deficit capital? 4. Problem 1 - How much will Fred receive upon liquidation after considering the personal contributions of Dale and Edgar? P.

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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