Advanced Financial Accounting
11th Edition
ISBN: 9780078025877
Author: Theodore E. Christensen, David M Cottrell, Cassy JH Budd Advanced Financial Accounting
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 16, Problem 16.9E
Confirmation of Cash Distribution Plan
Refer to the data in exercise E16-8. During the liquidation process for the APB
- During the first month of liquidation, noncash assets with a book value of $85,000 were sold for $65,000, and $21,000 of the liabilities were paid.
- During the second month, the remaining noncash assets were sold for $79,000. The loan receivable from Adams was collected, and the rest of the creditors were paid.
- Cash is distributed to partners at the end of each month.
Required
Prepare a statement of partnership realization and liquidation with a schedule of safe payments to partners for the liquidation period.
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Instructions:1. Prepare a Cash priority program.2. Prepare a Statement of Liquidation.3. Prepare the necessary journal entries to record the liquidation process.
EXERCISE 8-9. Problem Solving 1: Selling price of non-cash assets; cash distribution.
As of December 31, 2019, the books of May, Mae, and Mei showed capital balances of
P300,000, P250,000, and P100,000, respectively, and cash balance of P25,000. They shared
profits and losses equally. On that date, the partners decided to liquidate due to personal
reasons. They sold all non-cash assets to Mia at a loss of P90,000. After settling the liabilities
to external creditors amounting to P100,000, the partnership had enough cash to distribute to
the partners that included a loan from May in the amount of P12,000.
REQUIRED:
1. How much were the non-cash assets sold for?
2. How much cash was distributed to each partner?
A condensed balance sheet for a partnership to be liquidated is as follows:(attached)The profit and loss percentages for Partners A, B, and C are 50%, 30%, and 20%, respectively. For each of the following independent scenarios, determine how much of the available cash, with the exception of $10,000, would be distributed to Partner B.1. Assume that the receivables and the inventory were liquidated for $140,000 cash.2. Assume that all noncash assets other than equipment were sold for $53,000 cash.3. Assume that noncash assets with a book value of $300,000 were sold for $250,000 cash and that a distribution to Partner A was made in order to pay off the loan payable to them.
Chapter 16 Solutions
Advanced Financial Accounting
Ch. 16 - What are the major causes of a dissolution? What...Ch. 16 - Prob. 16.2QCh. 16 - Prob. 16.3QCh. 16 - Prob. 16.4QCh. 16 - Contrast a lump-sum liquidation with an...Ch. 16 - Prob. 16.6QCh. 16 - Prob. 16.7QCh. 16 - Prob. 16.8QCh. 16 - Prob. 16.9QCh. 16 - Prob. 16.10Q
Ch. 16 - Prob. 16.11QCh. 16 - The installment liquidation process uses a...Ch. 16 - Prob. 16.13QCh. 16 - Prob. 16.14QCh. 16 - Prob. 16.15QCh. 16 - Cash Distributions to Partners Analysis The...Ch. 16 - Prob. 16.2CCh. 16 - Prob. 16.3CCh. 16 - Sharing Losses during Liquidation Research Hiller,...Ch. 16 - Prob. 16.1.1ECh. 16 - Prob. 16.1.2ECh. 16 - Prob. 16.1.3ECh. 16 - Prob. 16.1.4ECh. 16 - Prob. 16.1.5ECh. 16 - Prob. 16.1.6ECh. 16 - Prob. 16.1.7ECh. 16 - Prob. 16.2.1ECh. 16 - Prob. 16.2.2ECh. 16 - Prob. 16.2.3ECh. 16 - Prob. 16.2.4ECh. 16 - Prob. 16.2.5ECh. 16 - Prob. 16.2.6ECh. 16 - Prob. 16.3ECh. 16 - Prob. 16.4ECh. 16 - Prob. 16.5ECh. 16 - Prob. 16.6ECh. 16 - Prob. 16.7ECh. 16 - Prob. 16.8ECh. 16 - Confirmation of Cash Distribution Plan Refer to...Ch. 16 - Prob. 16.10ECh. 16 - Prob. 16.11A.1ECh. 16 - Prob. 16.11A.2ECh. 16 - Prob. 16.11A.3ECh. 16 - Prob. 16.11A.4ECh. 16 - Prob. 16.11A.5ECh. 16 - Prob. 16.11A.6ECh. 16 - Prob. 16.11A.7ECh. 16 - Prob. 16.11A.8ECh. 16 - Prob. 16.11A.9ECh. 16 - Prob. 16.11A.10ECh. 16 - Prob. 16.11A.11ECh. 16 - Prob. 16.12AECh. 16 - Prob. 16.13PCh. 16 - Prob. 16.14PCh. 16 - Prob. 16.15PCh. 16 - Prob. 16.16PCh. 16 - Prob. 16.17PCh. 16 - Prob. 16.18PCh. 16 - Matching Terms Match the items in the left-hand...Ch. 16 - Prob. 16.20P
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