Wolowitz and Koothrapali decided to form the WK Partnership. Shown below are their balance sheets before any adjustments: Wolowitz 82,000.00 816,300.00 291,200.00 1,660,000.00 12,100.00 Кothrapali 117,500.00 Cash Accounts receivable 1,186,100.00 576,300.00 Merchandise inventory Property and equipment (net) Other assets 971,100.00 9.400.00 2,860,400.00 TOTAL ASSETS 2,861,600.00 Accounts payable Notes payable Real mortgage payable Wolowitz, Capital Koothrapali, Capital 726,000.00 500,000.00 550,000.00 720,000.00 1,635,600.00 1,590,400.00 ТОTAL 2,861,600.00 2,860,400.00 The partners agreed that the property and equipment of Wolowitz is under depreciated by P166,000 and that of Koothrapali is over depreciated by P90,000. Accounts receivable of P82,000 in Wolowitz's books and P120,000 in Koothrapali's books are uncollectible and must be written off. The partnership decided not to assume responsibility on the real mortgage liability of Koothrapali. The partnership agreement provides for a profit and loss ratio and capital interest of 60:40 to Koothrapali and Wolowitz, respectively. Koothrapali is willing to invest or withdraw cash from the partnership to comply with the partnership agreement.
Wolowitz and Koothrapali decided to form the WK Partnership. Shown below are their balance sheets before any adjustments: Wolowitz 82,000.00 816,300.00 291,200.00 1,660,000.00 12,100.00 Кothrapali 117,500.00 Cash Accounts receivable 1,186,100.00 576,300.00 Merchandise inventory Property and equipment (net) Other assets 971,100.00 9.400.00 2,860,400.00 TOTAL ASSETS 2,861,600.00 Accounts payable Notes payable Real mortgage payable Wolowitz, Capital Koothrapali, Capital 726,000.00 500,000.00 550,000.00 720,000.00 1,635,600.00 1,590,400.00 ТОTAL 2,861,600.00 2,860,400.00 The partners agreed that the property and equipment of Wolowitz is under depreciated by P166,000 and that of Koothrapali is over depreciated by P90,000. Accounts receivable of P82,000 in Wolowitz's books and P120,000 in Koothrapali's books are uncollectible and must be written off. The partnership decided not to assume responsibility on the real mortgage liability of Koothrapali. The partnership agreement provides for a profit and loss ratio and capital interest of 60:40 to Koothrapali and Wolowitz, respectively. Koothrapali is willing to invest or withdraw cash from the partnership to comply with the partnership agreement.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
What is Koothrapali’s capital balance after adjustments but before making any cash investment or withdrawal?
How much cash shall Koothrapali invest (withdraw) to comply with the partnership agreement?
Transcribed Image Text:Wolowitz and Koothrapali decided to form the WK Partnership. Shown below are their balance
sheets before any adjustments:
Wolowitz
Кoothrapali
Cash
82,000.00
117.500.00
Accounts receivable
Merchandise inventory
Property and equipment (net)
Other assets
816,300.00
1,186,100.00
576,300.00
291,200.00
1,660,000.00
971,100.00
12,100.00
9,400.00
TOTAL ASSETS
2,861,600.00
2,860,400.00
Accounts payable
Notes payable
Real mortgage payable
Wolowitz, Capital
Koothrapali, Capital
726,000.00
550,000.00
500,000.00
720,000.00
1,635,600.00
1,590,400.00
2,860,400.00
ТОTAL
2,861,600.00
The partners agreed that the property and equipment of Wolowitz is under depreciated by P166,000
and that of Koothrapali is over depreciated by P90,000. Accounts receivable of P82,000 in
Wolowitz's books and P120,000 in Koothrapali's books are uncollectible and must be written off.
The partnership decided not to assume responsibility on the real mortgage liability of Koothrapali.
The partnership agreement provides for a profit and loss ratio and capital interest of 60:40 to
Koothrapali and Wolowitz, respectively. Koothrapali is willing to invest or withdraw cash from
the partnership to comply with the partnership agreement.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 2 images
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.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education