Advanced Accounting
14th Edition
ISBN: 9781260247824
Author: Joe Ben Hoyle, Thomas F. Schaefer, Timothy S. Doupnik
Publisher: RENT MCG
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Textbook Question
Chapter 15, Problem 5P
A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent.
| Bell, capital | $ 50,000 |
| Hardy, capital | 56,000 |
| Dennard, capital | 14,000 |
| Suddath, capital | 80,000 |
Bell’s creditors have filed a $21,000 claim against the partnership’s assets. The partnership currently holds assets of $300,000 and liabilities of $100,000. If the assets can be sold for $190,000, what is the minimum amount that Bell’s creditors would receive?
a. –0–
b. $2,000
c. $2,800
d. $6,000
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A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are
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Hardy, capital
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Suddath, capital
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Bell’s creditors have filed a $45,000 claim against the partnership’s assets. The partnership currently holds assets of $540,000 and liabilities of $222,000. If the assets can be sold for $310,000, what is the minimum amount that Bell’s creditors would receive?
Multiple Choice
$1,000
$4,600
$0
$19,000
A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are
Bell, capital
$
108,500
Hardy, capital
92,000
Dennard, capital
11,000
Suddath, capital
103,000
Bell’s creditors have filed a $44,000 claim against the partnership’s assets. The partnership currently holds assets of $530,000 and liabilities of $215,500. If the assets can be sold for $305,000, what is the minimum amount that Bell’s creditors would receive?
A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are
Bell, capital
$ 106,000
Hardy, capital
91,000
Dennard, capital
12,000
Suddath, capital
102,000
Bell’s creditors have filed a $43,000 claim against the partnership’s assets. The partnership currently holds assets of $520,000 and liabilities of $209,000. An independent appraiser indicates that the assets can be sold for $300,000.
Required:
Prepare a statement of partnership liquidation to determine the amount of cash that Bell would receive from the sale of partnership assets.
Note: Amounts to be deducted should be entered with a minus sign
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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- A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are Bell, capital Hardy, capital Dennard, capital Suddath, capital $ 50,000 56,000 14,000 80,000 Bell's creditors have filed a $21,000 claim against the partnership's assets. The partnership currently holds assets of $300,000 and liabilities of $100,000. An independent appraiser indicates that the assets can be sold for $190,000. Required: Prepare a statement of partnership liquidation to determine the amount of cash that Bell would receive from the sale of partnership assets. Note: Amounts to be deducted should be entered with a minus sign. BELL, HARDY, DENNARD, AND SUDDATH PARTNERSHIP Statement of Partnership Liquidation (Hypothetical) Cash Assets Liabilities Bell, Capital Hardy, Capital 40% 30% Dennard, Capital 20% Suddath, Capital 10% Balances Sale of assets Subtotal $ 0 0…arrow_forwardA partnership is considering possible liquidation because one of the partners (Bell) is personally Insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are Bell, capital Hardy, capital Dennard, capital Suddath, capital $ 111,000 93,000 10,000 104,000 Bell's creditors have filed a $45,000 claim against the partnership's assets. The partnership currently holds assets of $540,000 and liabilities of $222,000. An Independent appraiser Indicates that the assets can be sold for $310,000. Required: Prepare a statement of partnership liquidation to determine the amount of cash that Bell would receive from the sale of partnership assets. Note: Amounts to be deducted should be entered with a minus sign. Balances Cash BELL, HARDY, DENNARD, AND SUDDATH PARTNERSHIP Statement of Partnership Liquidation (Hypothetical) Assets Liabilities Bell, Capital 40% Hardy, Capital 30% Dennard, Capital 20% Suddath, Capital 10% Sale of assets Subtotal $ 0…arrow_forwardA partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are Bell, capital Hardy, capital Dennard, capital Suddath, capital Bell's creditors have filed a $31,000 claim against the partnership's assets. The partnership currently holds assets of $400,000 and liabilities of $158,000. An independent appraiser indicates that the assets can be sold for $240,000. $ 76,000 66,000 10,000 90,000 Required: Prepare a statement of partnership liquidation to determine the amount of cash that Bell would receive from the sale of partnership assets. Note: Amounts to be deducted should be entered with a minus sign. Balances Sale of assets Subtotal Pay liabilities Subtotal Allocate deficit Subtotal Distribute cash Ending balances Cash BELL, HARDY, DENNARD, AND SUDDATH PARTNERSHIP Statement of Partnership Liquidation (Hypothetical) Assets Liabilities…arrow_forward
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