Accounting (Text Only)
26th Edition
ISBN: 9781285743615
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 12, Problem 12.6APE
a.
To determine
It is that form of organization which is owned and managed by two or more persons who invest and share the
Liquidating Partnership
The winding up of process of partnership is called liquidation of partnership. At the time of liquidation of partnership realization of account is prepared.
To determine: The amount of B’s deficiency.
b.
To determine
The amount distributed to W.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Prior to liquidating their partnership, Greer and Murphy had capital accounts of $70,000 and $30,000, respectively. The partnership assets were sold for $25,000. The partnership had no liabilities. Greer and Murphy share income and losses equally.
a. Determine the amount of Murphy’s deficiency.
b. Determine the amount distributed to Greer, assuming Murphy is unable to satisfy the deficiency. Liquidatingpartnerships— deficiency
Prior to liquidating their partnership, Wakefield and Barns had capital accounts of $105,000 and $55,000, respectively. The partnership assets were sold for $40,000. The partnership had no liabilities. Wakefield and Barns share income and losses equally.a. Determine the amount of Barns’s deficiency.b. Determine the amount distributed to Wakefield, assuming that Barns is unable to satisfy the deficiency.
Prior to liquidating their partnership, Bonilla and Perez had capital accounts of $185,000 and $245,000, respectively. The partnership assets were sold for $30,000. The partnership had no liabilities. Bonilla and Perez share income and losses equally.a. Determine the amount of Bonilla’s deficiency.b. Determine the amount distributed to Perez, assuming that Bonilla is unable to satisfy the deficiency.
Chapter 12 Solutions
Accounting (Text Only)
Ch. 12 - Prob. 1DQCh. 12 - Prob. 2DQCh. 12 - Prob. 3DQCh. 12 - Prob. 4DQCh. 12 - Prob. 5DQCh. 12 - Prob. 6DQCh. 12 - Prob. 7DQCh. 12 - Prob. 8DQCh. 12 - Prob. 9DQCh. 12 - Prob. 10DQ
Ch. 12 - Prob. 12.1APECh. 12 - Prob. 12.1BPECh. 12 - Prob. 12.2APECh. 12 - Prob. 12.2BPECh. 12 - Prob. 12.3APECh. 12 - Prob. 12.3BPECh. 12 - Prob. 12.4APECh. 12 - Prob. 12.4BPECh. 12 - Prob. 12.5APECh. 12 - Prob. 12.5BPECh. 12 - Prob. 12.6APECh. 12 - Prob. 12.6BPECh. 12 - Prob. 12.7APECh. 12 - Prob. 12.7BPECh. 12 - Prob. 12.1EXCh. 12 - Prob. 12.2EXCh. 12 - Prob. 12.3EXCh. 12 - Prob. 12.4EXCh. 12 - Prob. 12.5EXCh. 12 - Prob. 12.6EXCh. 12 - Prob. 12.7EXCh. 12 - Prob. 12.8EXCh. 12 - Prob. 12.9EXCh. 12 - Prob. 12.10EXCh. 12 - Prob. 12.11EXCh. 12 - Prob. 12.12EXCh. 12 - Prob. 12.13EXCh. 12 - Prob. 12.14EXCh. 12 - Prob. 12.15EXCh. 12 - Prob. 12.16EXCh. 12 - Prob. 12.17EXCh. 12 - Statement of members equity, admitting new member...Ch. 12 - Distribution of cash upon liquidation Hewitt and...Ch. 12 - Distribution of cash upon liquidation David Oliver...Ch. 12 - Prob. 12.21EXCh. 12 - Prob. 12.22EXCh. 12 - Liquidating partnershipscapital deficiency...Ch. 12 - Prob. 12.24EXCh. 12 - Prob. 12.25EXCh. 12 - Prob. 12.26EXCh. 12 - Prob. 12.27EXCh. 12 - Prob. 12.28EXCh. 12 - Prob. 12.1APRCh. 12 - Prob. 12.2APRCh. 12 - Prob. 12.3APRCh. 12 - Prob. 12.4APRCh. 12 - Prob. 12.5APRCh. 12 - Prob. 12.6APRCh. 12 - Prob. 12.1BPRCh. 12 - Prob. 12.2BPRCh. 12 - Prob. 12.3BPRCh. 12 - Prob. 12.4BPRCh. 12 - Prob. 12.5BPRCh. 12 - Statement of partnership liquidation On August 3,...Ch. 12 - Prob. 12.1CPCh. 12 - Prob. 12.2CPCh. 12 - Revenue per employee The following table shows key...Ch. 12 - Prob. 12.4CP
Knowledge Booster
Similar questions
- Prior to liquidating their partnership, Samuel and Brian had capital accounts of $60,000 and $240,000, respectively .The partnership assets were sold for $120,000. The partnership had no liabilities. Samuel and Brian share income and losses equally.. Required: a. Determine the amount of Samuel's deficiency b. Determine the amount distributed to Brian, assuming Samuel is unable to satisfy the deficiency Show Your Work:.arrow_forwardLiquidating Partnerships—Deficiency Prior to liquidating their partnership, Short and Reynell had capital accounts of $24,000 and $99,000, respectively. The partnership assets were sold for $47,000. The partnership had no liabilities. Short and Reynell share income and losses equally. Required: a. Determine the amount of Short's deficiency.$fill in the blank 1 b. Determine the amount distributed to Reynell, assuming that Short is unable to satisfy the deficiency.$fill in the blank 2arrow_forwardPrior to liquidating their partnership, Samuel and Brian had capital accounts of $60,000 and $240,000, respectively .The partnership assets were sold for $120,000. The partnership had no liabilities. Samuel and Brian share income and losses equally.. Required: Determine the amount of Samuel’s deficiency Determine the amount distributed to Brian, assuming Samuel is unable to satisfy the deficiency Show Your Work:.arrow_forward
- Prior to liquidating their partnership, Sam and Brian had capital accounts of $60,000 and $240,000, respectively. The partnership assets were sold for $120,000. The partnership had no liabilities. Sam and Brian share income and losses equally Determine the amount of Sam’s deficiency. Determine the amount distributed to Brian, assuming Sam is unable to satisfy the deficiency. Show your work:arrow_forwardLiquidating Partnerships-Deficiency Prior to liquidating their partnership, Jacobs and Sanchez had capital accounts of $320,000 and $424,000, respectively. The partnership assets were sold for $52,000. The partnership had no liabilities. Jacobs and Sanchez share income and losses equally. Required: Determine the amount of Jacobs's deficiency. Determine the amount distributed to Sanchez, assuming that Jacobs is unable to satisfy the deficiency.arrow_forwardLiquidating Partnerships—Deficiency Prior to liquidating their partnership, Underwood and Bain had capital accounts of $28,000 and $107,000, respectively. The partnership assets were sold for $53,000. The partnership had no liabilities. Underwood and Bain share income and losses equally. a. Determine the amount of Underwood's deficiency.fill in the blank 1 of 1$ b. Determine the amount distributed to Bain, assuming that Underwood is unable to satisfy the deficiency.arrow_forward
- Liquidating Partnerships—Deficiency Prior to liquidating their partnership, Pepper and Bain had capital accounts of $20,000 and $83,000, respectively. The partnership assets were sold for $39,000. The partnership had no liabilities. Pepper and Bain share income and losses equally. Required: a. Determine the amount of Pepper's deficiency.$ b. Determine the amount distributed to Bain, assuming Pepper is unable to satisfy the deficiency.$arrow_forwardA partnership has the following accounting amounts: Sales Cost of Goods Sold General and Administrative Expenses Distribution costs Interest paid to banks Salary allowances to partners Partners' withdrawals 150,000 80,000 17,000 52,000 23,000 12,000 18,000 Compute the Partnership's net income (loss). Encode as a negative amount if the answer is a loss.arrow_forwardMarciano, Tunney, and Jeffries formed a partnership with an income ratio of 6:2:2, respectively. After liquidation of the partnership, cash of $192,000 was available. Marciano had a capital balance of $112,000, and Tunney had a capital balance of $104,000. Jeffries had a capital deficiency of $24,000. How much cash should be distributed to Tunney if Jeffries does not pay his deficiency? 1. $98,000. 2. $101,000. 3. $95,000. 4. $104,000.arrow_forward
- The following balance sheet is for a local partnership in which the partners have become very unhappy with each other. To avoid more conflict, the partners have decided to cease operations and sell all assets. Using this information, answer the following questions. Each question should be viewed as an situation related to the partnership’s liquidation. The $10,000 cash that exceeds the partnership liabilities is to be disbursed immediately. If profits and losses are allocated to Adams, Baker, Carvil, and Dobbs on a 2:3:3:2 basis, respectively, how will the $10,000 be divided? The $10,000 cash that exceeds the partnership liabilities is to be disbursed immediately. If profits and losses are allocated on a 2:2:3:3 basis, respectively, how will the $10,000 be divided? The building is immediately sold for $70,000 to give total cash of $110,000. The liabilities are then paid, leaving a cash balance of $80,000. This cash is to be distributed to the partners. How much of this money will each…arrow_forward1. The division of partnership profits on the basis of salaries, interest, and an agreed ratio is usually necessary because: a. this prevents arguments among the partners b. most investors require this method of distribution c. partners seldom contribute time, effort and resources equally d. this reflects the amount of time the partnership by the partners 2. On July 1, Fernando and Fetalvero formed a partnership, agreeing to share profits and losses in the ratio of 4:6 respectively. Fernando contributed a parcel of land that cost P250,000. Fetalvero contributed cash of P500,000 cash. The land was sold for P500,000 on July 1, three hours after the formation of a partnership. How much should land be recorded in Fernando's capital account upon the formation of the partnership? a. P200,000 b. P500,000 c. P250,000 d. P100,000 3. Lacson and Solis started a partnership. Lacson contributed a building that she purchased 10 years ago for P100,000. The…arrow_forwardWhat is the difference in treatment when an incoming partner purchases an interest by agreeing to perform services for the partnership and the partnership (1) gives a 25 percent interest in the capital of the partnership, (2) gives a 25 percent interest in the future income of the partnership, or (3) gives a 25 percent interest in the partnership's future income which the incoming partner must forfeit if the partnership, as reconstituted after the incoming partner's admission, is unable to earn an average of $100,000 profit for the ensuing five years?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
