Toast, a Belleville, Ontario, restaurant, began with investments by the partners as follows: Lea, $236,700; Eva, $178,300; and Sophia,$192,700. The first year of operations did not go well, and the partners finally decided to liquidate the partnership, sharing all lossesequally. On December 31, after all assets were converted to cash and all creditors were paid, only $61,100 in partnership cashremained.Required:1. Calculate the capital account balances of the partners after the liquidation of assets and payment of creditors. (Negative amountsshould be indicated by a minus sign.)Required:1. Calculate the capital account balances of the partners after the liquidation of assets and payment of creditors. (Negative amountsshould be indicated by a minus sign.)Capitalbalances2. Assume that any partner with a deficit pays cash to the partnership to cover the deficit. Present the general journal entries onDecember 31 to record the cash receipt from the deficient partner(s) and the final disbursement of cash to the partners.12Answer is complete but not entirely correct.EvaSophiaTotalS 54.700$ (3,800) $10,600S 61.000 02. Assume that any partner with a deficit pays cash to the partnership to cover the deficit. Present the general journal entries onDecember 31 to record the cash receipt from the deficient partner(s) and the final disbursement of cash to the partners.No12DateDec 31LeaDec 31DateDecAnswer is complete but not entirely correct.CashDec 31Answer is complete but not entirely correct.Eva, capitalLea, capitalSophia, capitalCashLea, capitalSophia, capitalEva, capitalGeneral JournalLea, capitalSophia, capitalCashO000Debit3,8003. Now make the contrary assumption that any partner with a deficit is not able to reimburse the partnership. Present journal entries:(a) to transfer the deficit of any deficient partners to the other partners, and (b) to record the final disbursement of cash to the partners.54,20010,600Answer is complete but not entirely correct.General Journal000O♥OOCreditDebit1,9001.9003,80064,80052,3008,700Return to questionCredit3,80061,000Return to questo

The sharing of profit and loss in accordance with the profit and loss sharing ratio. it completely…

Answered: Toast, a Belleville, Ontario,…

Business

Accounting

Toast, a Belleville, Ontario, restaurant, began with investments by

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Angel De Jesus, a business graduate student who was working as a mere employee in a company called…

A: Accounting equation is one of the concept used in accounting, which says that total assets in the…

Q: Mary operates a famous company in Canada, selling down jackets. She is planning to establish…

A: The answers for the questions on operating a business through branches in a country other than its…

Q: You have graduated from Holmes Institute with a Master’s Degree in Professional Accounting, and…

A: The type of business structure one chooses is very important as it affects the whole day to day…

Q: Relate the local business examples, to each of the Financial Manager's objectives. Instructions:…

A: Profit maximization is for short term obligations whereas wealth maximization is broader concept…

Q: Within a large rental corporation where the commercial rental segment dominated, Gary managed the…

A: Economic Value Added (EVA) is a financial performance metric that measures the amount of value a…

Q: All of the following, excer one, are examples of investment. Which is the exception? O A graphic…

A: Investment is defined as the dedication of assets for attaining the rise in the value over the…

Q: providěd about the company, what type of organization was Petite Palate?

A: For- profit type of organisation is a type of organisation or corporation which mainly focus on…

Q: Geraldine, the COO of a gourmet food truck business that specializes in Spanish cuisine such as…

A: Profitability analysis is one of the analysis being used for analysing whether these projects are…

Q: In the picture below, Determine whether long-term or short-term financing is required Acquisition of…

A: Long term financing is when the loan term is above 10 years. Short term financing is when the loan…

Q: You have the following hypothesis: People who eat at Wendy's also tend to have larger household size…

A: The objective of the question is to identify the type of research that would be most appropriate to…

Q: Required information (The following information applies to the questions displayed below] J. Kamas…

A: The financial reporting process begins with the unadjusted income statement. The required…

Q: A large retailer such as LuLu Hypermarket, deciding whether to open another store?This is best…

A: Finance means planning the sources from where the funds should be acquired and deciding the areas…

Q: Determine the following amounts for Sprouts: r: SFM) offers a healthy grocery store experience.…

A: Detailed explanation:Hi student, Its my pleasure to help you with your question. Unfortunately, the…

Q: Once upon a time, there was an amazing group of students who studied at Cronfwoman University.…

A: To assess the investment opportunity for the sandwich shop, we need to analyze the potential revenue…

Q: Octagon Supplements is a company registered in Australia. It is a seller of organic health and…

A: Corporations Act, 2001 is the act that put the additional fiduciary duties on the directors…

Q: Kamas and G. Charrier have been operating a catering business for several years. In March, the…

A: Income statement is one of the financial statement which shows all incomes and all expenses of the…

Q: T/F Person A works for Global Payments Inc. They will take a portion of their pay check to buy…

A: Meaning of Gain Sharing Gainsharing is best described as a system of management in which an…

Q: The Zingerman’s Community of Businesses (ZCoB) is a family of ten businesses all located in the Ann…

A: Open book management is a business philosophy that shares financial information with all…

Q: Identify factors in an ethical decision. Jim Sandrolini is an accountant for a local manufacturing…

A: Accounting: Business ethics are business policies and practices which are made to conduct a…

Question

Toast, a Belleville, Ontario, restaurant, began with investments by the partners as follows: Lea, $236,700; Eva, $178,300; and Sophia,
$192,700. The first year of operations did not go well, and the partners finally decided to liquidate the partnership, sharing all losses
equally. On December 31, after all assets were converted to cash and all creditors were paid, only $61,100 in partnership cash
remained.
Required:
1. Calculate the capital account balances of the partners after the liquidation of assets and payment of creditors. (Negative amounts
should be indicated by a minus sign.)
Required:
1. Calculate the capital account balances of the partners after the liquidation of assets and payment of creditors. (Negative amounts
should be indicated by a minus sign.)
Capital
balances
2. Assume that any partner with a deficit pays cash to the partnership to cover the deficit. Present the general journal entries on
December 31 to record the cash receipt from the deficient partner(s) and the final disbursement of cash to the partners.
1
2
Answer is complete but not entirely correct.
Eva
Sophia
Total
S 54.700$ (3,800) $10,600S 61.000 0
2. Assume that any partner with a deficit pays cash to the partnership to cover the deficit. Present the general journal entries on
December 31 to record the cash receipt from the deficient partner(s) and the final disbursement of cash to the partners.
No
1
2
Date
Dec 31
Lea
Dec 31
Date
Dec
Answer is complete but not entirely correct.
Cash
Dec 31
Answer is complete but not entirely correct.
Eva, capital
Lea, capital
Sophia, capital
Cash
Lea, capital
Sophia, capital
Eva, capital
General Journal
Lea, capital
Sophia, capital
Cash
O
000
Debit
3,800
3. Now make the contrary assumption that any partner with a deficit is not able to reimburse the partnership. Present journal entries:
(a) to transfer the deficit of any deficient partners to the other partners, and (b) to record the final disbursement of cash to the partners.
54,200
10,600
Answer is complete but not entirely correct.
General Journal
000
O
♥
O
O
Credit
Debit
1,900
1.900
3,800
64,800
52,300
8,700
Return to question
Credit
3,800
61,000
Return to questo

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Step by step

Solved in 4 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

In November 2017, after having incorporated Cookie Creations Inc., Natalie begins operations. She has decided not to pursue the offer to supply cookies to Biscuits. Instead, she will focus on offering cooking classes. The following events occur. Nov. 8 Natalie cashes in her U.S. Savings Bonds and receives $520, which she deposits in her personal bank account. 8 Natalie opens a bank account for Cookie Creations Inc. 8 Natalie purchases $500 of Cookie Creations’ common stock. 11 Cookie Creations purchases paper and other office supplies for $95. (Use Supplies.) 14 Cookie Creations pays $125 to purchase baking supplies, such as flour, sugar, butter, and chocolate chips. (Use Supplies.) 15 Natalie starts to gather some baking equipment to take with her when teaching the cookie classes. She has an excellent top-of-the-line food processor and mixer that originally cost her $550. Natalie decides to start using it only in her new…
Deloitte, a public accounting firm, helps tounderwrite the musical production “Mama Mia”currently playing at the Theater Center. Whywould the accounting firm do this? What isDeloitte creating?a. Point-of-purchase activityb. Sales promotionc. Public-relations activityd. Community-service activitye. Cooperative advertising
very urgent thankyouuu!!!!
Based on the historical company financial information and business description is given below answer the following: (a) Identify three key ratios you would use as a guide (and why) to help you determine which business you would prefer to invest in?(b) What further information might you consider or need before making a final investment decision?
Focus on ethics (Note: This case is based on an actual situation.) Stan Sewell paid $50000 for a franchise that entitled him to market software programs in the countries of the European Union. Sewell intended to sell individual franchises for the major language groups of Western Europe-German, French, English, Spanish and Italian. Naturally, investors considering buying a franchise from Sewell asked to see the financial statements of his business. Believing the value of the franchise to be $500000, Sewell sought to capitalise his own franchise at $500000. The law firm of St Charles & LaDue helped Sewell form a company empowered to issue 500000 ordinary shares. Solicitors suggested the following chain of transactions: 1 Sewell's cousin, Bob, borrows $500000 from a bank and purchases the franchise from Sewell. 2 Sewell pays the company $500 000 to acquire all its shares. 3 The company buys the franchise from cousin Bob. 4 Cousin Bob repays the $500 000 loan to the bank. In the final…
Cintu is a large marketer and distributor of food service products serving restaurants, hotels, schools, hospitals, and other institutions. The following transactions are typical of those that occurred in a recent year, but the amounts are simplified. a. Borrowed $101,000 from a bank, signing a short-term note payable. b. Provided $106,300 in service to customers, with $100,100 on account and the rest received in cash. c. Purchased equipment for $146,000 in cash. d. Incurred and paid employee wages of $2,450. e. Received $430 on account from a customer. f. Incurred and paid $4,850 cash for travel costs during the year. g. Paid $9,100 cash on accounts payable. h. Incurred $24,300 in utility expenses during the year, of which $18,800 was paid in cash and the rest owed on account. Required: 1. For each of the above transactions, prepare accrual basis journal entries. 2. Calculate the company's preliminary net income.