Advanced Accounting
14th Edition
ISBN: 9781260247824
Author: Joe Ben Hoyle, Thomas F. Schaefer, Timothy S. Doupnik
Publisher: RENT MCG
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Chapter 15, Problem 29P
To determine
Prepare a schedule to compute the safe instalment payments made to the partners at the end of each of these three months.
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On January 1, the partners of Van, Bakel, and Cox (who share profits and losses in the ratio of 5:3:2, respectively) decide to terminate operations and liquidate their partnership. The trial balance at this date follows:
Debit
Credit
Cash
$
23,000
Accounts receivable
76,000
Inventory
62,000
Machinery and equipment, net
199,000
Van, loan
40,000
Accounts payable
$
73,000
Bakel, loan
30,000
Van, capital
123,000
Bakel, capital
95,000
Cox, capital
79,000
Totals
$
400,000
$
400,000
The partners plan a program of piecemeal conversion of the partnership’s assets to minimize liquidation losses. All available cash, less an amount retained to provide for future expenses, is to be distributed to the partners at the end of each month. A summary of the liquidation transactions follows:
January
Collected $56,000 of the accounts receivable; the balance is deemed uncollectible.
Received $43,000 for…
On January 1, the partners of Van, Bakel, and Cox (who share profits and losses in the ratio of 5:3:2, respectively) decide to terminate operations and liquidate their partnership. The trial balance at this date follows:
Debit
Credit
Cash
$
23,000
Accounts receivable
76,000
Inventory
62,000
Machinery and equipment, net
199,000
Van, loan
40,000
Accounts payable
$
73,000
Bakel, loan
30,000
Van, capital
123,000
Bakel, capital
95,000
Cox, capital
79,000
Totals
$
400,000
$
400,000
The partners plan a program of piecemeal conversion of the partnership’s assets to minimize liquidation losses. All available cash, less an amount retained to provide for future expenses, is to be distributed to the partners at the end of each month. A summary of the liquidation transactions follows:
January
Collected $56,000 of the accounts receivable; the balance is deemed uncollectible.
Received $43,000 for…
On January 1, the partners of Van, Bakel, and Cox (who share profits and losses in the ratio of 5:3:2, respectively) decide to terminate
operations and liquidate their partnership. The trial balance at this date follows:
Cash
Accounts receivable
Inventory
Machinery and equipment, net
Van, loan
Accounts payable
Bakel, loan
Van, capital
Bakel, capital
Cox, capital
Totals
Debit
$ 32,000
94,000
Credit
80,000
217,000
58,000
$ 89,000
48,000
152,000
104,000
88,000
$ 481,000
$ 481,000
The partners plan a program of piecemeal conversion of the partnership's assets to minimize liquidation losses. All available cash, less
an amount retained to provide for future expenses, is to be distributed to the partners at the end of each month. A summary of the
liquidation transactions follows:
January
February
March
Collected $65,000 of the accounts receivable; the balance is deemed
uncollectible.
Received $52,000 for the entire inventory.
Paid $8,000 in liquidation expenses.
Paid $80,000 to the outside…
Chapter 15 Solutions
Advanced Accounting
Ch. 15 - Prob. 1QCh. 15 - Prob. 2QCh. 15 - Prob. 3QCh. 15 - Prob. 4QCh. 15 - What is the purpose of a statement of liquidation?...Ch. 15 - Prob. 1PCh. 15 - Prob. 2PCh. 15 - Prob. 3PCh. 15 - Prob. 4PCh. 15 - A partnership is considering possible liquidation...
Ch. 15 - What is a predistribution plan? a. A list of the...Ch. 15 - Prob. 7PCh. 15 - Prob. 8PCh. 15 - Prob. 9PCh. 15 - Prob. 10PCh. 15 - Prob. 11PCh. 15 - Prob. 12PCh. 15 - Prob. 13PCh. 15 - Prob. 14PCh. 15 - Prob. 15PCh. 15 - Prob. 16PCh. 15 - Prob. 17PCh. 15 - Prob. 18PCh. 15 - Prob. 25PCh. 15 - Prob. 26PCh. 15 - March, April, and May have been in partnership for...Ch. 15 - Prob. 28PCh. 15 - Prob. 29P
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- On January 1, the partners of Van, Bakel, and Cox (who share profits and losses in the ratio of 5:3:2, respectively) decide to terminate operations and liquidate their partnership. The trial balance at this date follows: Debit Credit Cash $ 24,000 Accounts receivable 78,000 Inventory 64,000 Machinery and equipment, net 201,000 Van, loan 42,000 Accounts payable $ 77,000 Bakel, loan 32,000 Van, capital 124,000 Bakel, capital 96,000 Cox, capital 80,000 Totals $ 409,000 $ 409,000 The partners plan a program of piecemeal conversion of the partnership’s assets to minimize liquidation losses. All available cash, less an amount retained to provide for future expenses, is to be distributed to the partners at the end of each month. A summary of the liquidation transactions follows: January Collected $57,000 of the accounts receivable; the balance is deemed uncollectible. Received $44,000 for…arrow_forwardOn January 1, the partners of Van, Bakel, and Cox (who share profits and losses in the ratio of 5:3:2, respectively) decide to terminate operations and liquidate their partnership. The trial balance at this date follows: Debit Credit Cash $ 24,000 Accounts receivable 78,000 Inventory 64,000 Machinery and equipment, net 201,000 Van, loan 42,000 Accounts payable $ 77,000 Bakel, loan 32,000 Van, capital 124,000 Bakel, capital 96,000 Cox, capital 80,000 Totals $ 409,000 $ 409,000 The partners plan a program of piecemeal conversion of the partnership’s assets to minimize liquidation losses. All available cash, less an amount retained to provide for future expenses, is to be distributed to the partners at the end of each month. A summary of the liquidation transactions follows: January Collected $57,000 of the accounts receivable; the balance is deemed uncollectible. Received $44,000 for…arrow_forwardOn January 1, the partners of Van, Bakel, and Cox (who share profits and losses in the ratio of 5:3:2, respectively) decide to terminate operations and liquidate their partnership. The trial balance at this date follows: Cash Accounts receivable Inventory Machinery and equipment, net Van, loan Accounts payable Bakel, loan Van, capital Bakel, capital Cox, capital Totals February $ March Debit 36,000 102,000 88,000 225,000 66,000 $ Credit 95,000 56,000 The partners plan a program of piecemeal conversion of the partnership's assets to minimize liquidation losses. All available cash, less an amount retained to provide for future expenses, is to be distributed to the partners at the end of each month. A summary of the liquidation transactions follows: January 166,000 108,000 92,000 $ 517,000 $ 517,000 Collected $69,000 of the accounts receivable; the balance is deemed uncollectible. Received $56,000 for the entire inventory. Paid $4,000 in liquidation expenses. Paid $90,000 to the outside…arrow_forward
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