16 Blossom, Jennings, and Blair share profits and losses is 2:3:5, respectively. The balancesheet is:BLOSSOM, JENNINGS, AND BLAIR PARTNERSHIPBalance Sheet31-Dec-20AssetsCash$ 42,000Liabilities and Owners' EquityLiabilitiesNoncash assets275,000140,00059,000Blossom, Capital89,000Jennings, Capital29,000Total317,000Blair, CapitalTotal$317,000If the partnership is liquidated by selling the noncash assets for $365,000, and creditorsare paid in full, what is the total amount of cash that Blossom will receive in thedistribution of cash to partners?$77,000$74,000$18,000$114,000TOD16017 In the liquidation of a partnership, any gain or loss on the realization of noncash assetsshould be allocatedA) to the partners on the basis of their income ratios.B) first to creditors and the remainder to partners.C) only after all creditors have been paid.D) to the partners on the basis of their capital balances.9991nobso ali nio leps18 A liquidation differs from a dissolution is that in a liquidationA) the business will not continue rose esB) assets may be revaluedC) gains and losses are distributed according to the partnershipagreementD) there may be an adjustment of partners' Capital accountsE) None of the above

Partnership means the agreement between the two or more person to do the business together and share…

16 Blossom, Jennings, and Blair share profits and losses is 2:3:5, respectively. The balance sheet is: BLOSSOM, JENNINGS, AND BLAIR PARTNERSHIP Balance Sheet 31-Dec-20 Assets Cash Liabilities and Owners' Equity Liabilities $ 42,000 Noncash assets 140,000 59,000 275,000 Blossom, Capital 89,000 Jennings, Capital 29,000 Total Blair, Capital Total 317,000 $317,000 If the partnership is liquidated by selling the noncash assets for $365,000, and creditors are paid in full, what is the total amount of cash that Blossom will receive in the distribution of cash to partners? $77,000 $74,000 $18,000 $114,000

16 Blossom, Jennings, and Blair share profits and losses is 2:3:5, respectively. The balance sheet is: BLOSSOM, JENNINGS, AND BLAIR PARTNERSHIP Balance Sheet 31-Dec-20 Assets Cash Liabilities and Owners' Equity Liabilities $ 42,000 Noncash assets 140,000 59,000 275,000 Blossom, Capital 89,000 Jennings, Capital 29,000 Total Blair, Capital Total 317,000 $317,000 If the partnership is liquidated by selling the noncash assets for $365,000, and creditors are paid in full, what is the total amount of cash that Blossom will receive in the distribution of cash to partners? $77,000 $74,000 $18,000 $114,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 1PA: The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after...

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Thandie and Marco are partners with capital balances of $60,000. They share profits and losses at 50%. Chris contributes $30,000 to the partnership for a 1/3 share. What amount should Thandies capital balance in the partnership be? A. $60,000 B. $50,000 C. $45,000 D. $30,000
The partnership of Chase and Chloe shares profits and losses in a 70:30 ratio respectively after Chloe receives a $10,000 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $ 30,000 B. $ 6,000 C. ($10,000)
The partnership of Magda and Sue shares profits and losses in a 50:50 ratio after Mary receives a $7,000 salary and Sue receives a $6,500 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $10,000 B. $5,000 C. ($12,000) In addition, show the resulting entries to each partners capital account.
Thandie and Marco are partners with capital balances of $60,000. They share profits and losses at 50%. Chris contributes $90,000 to the partnership for a 1/3 share. What amount should the partnership record as an individual bonus to each of the old partners? A. $10,000 B. $7,000 C. $3,000 D. $20,000
LAM, KO and TO share profits and losses as follows: LAM 20%, KO 30%, and TO 50%. The partnership’s Statement of Financial Position as of December 31, 2020 is presented below: Cash –P410,400; Noncash Assets – P2,028,600; Liabilities – P690,750; Loan from KO – P67,500; LAM, Capital– P270,000; KO, Capital – P398,250; TO, Capital – P1,012,500. The partners decided to liquidate onJanuary 2, 2021. All partners are personally solvent except for LAM. If TO received P236,250 for herinterest, how much were the noncash assets sold for? a. P476,100b. P516,600c. P1,512,00d. P1,552,500
57 On December 31, 20x20, the Statement of Financial Position of ABC Partnership with profit or loss ratio of 6:1:3 of partners A, B and C respectively, revealed the following data: Cash P1,000,000 Other liabilities P2,000,000 Receivable from A 500,000 Payable to B 1,000,000 Other noncash assets 2,000,000 Payable to C 100,000 A, Capital 700,000 B, Capital (650,000) C, Capital 350,000 On January 1, 20x21, the partners decided to liquidate the partnership. All partners are legally declared to be personally insolvent. The other noncash assets are sold for P1,500,000. Liquidation expenses amounting to P100,000 were incurred. How much cash was received by C at the end of partnership liquidation?
2. The capital balances of partners Po and Gi are as follows:Po GiJanuary 1, Beginning P100,000 P200,000June 30, investment 50,000 -September 30, withdrawal - (100,000)Balance P150,000 P100,000Their agreement is to share profit and loss based on average capital balance. How muchis the share of Gi in the partnership’s income of P450,000?
16. The statement of financial position of A, B, C partnership as of December 31, 2020 is presented below: CASH P50,000 LIABILITIES P80,000 OTHER ASSETS 300,000 A, LOAN 20,000 RECEIVABLE FROM B 10,000 A, CAPITAL 120,000 B, CAPITAL 90,000 C, CAPITAL 50,000 TOTAL P360,000 TOTAL P360,000 Profits and loss ratio is 30%, 50% and 20% for A, B and C, respectively. Other assets were realized as follows: DATE CASH RECEIVED BOOK VALUE JAN. 2020 90,000 P120,000 FEB. 2020 100,000 P80,000 MAR. 2020 125,000 P100,000 Liquidation expenses paid are as follows: January – P3,000February – P5,000 Cash is distributed as assets are realized; how much is the total cash received by partner A at the end of the liquidation?
26. MAR, JOE, and REY, who divide profits and losses 50%, 30%, and 20%, respectively, have the following October 31, 20x7 account balances: Mar, drawing (Dr.) P12,000.00 Rey, drawing (Cr.) 4,800.00 Accounts receivable – Mar 7,200.00 Loans payable – Joe 14,400.00 Mar, capital 59,400.00 Joe, capital 44,400.00 Rey, capital 39,000.00 On this date, the partnership’s assets are P211,200 (including cash of P64,200). The partnership is liquidated and Rey receives P33,000 in final settlement. How much is the total loss on realization? a. P30,000.00 b. P10,800.00 c. P64,200.00 d. P54,000.00 27. Refer to No. 26 above, how much is the realization price of the non-cash assets? a. P201,000.00 b. P 93,000.00 c. P117,000.00 d. P177,000.00
PA1.) The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after Tatum receives a 10,000 salary and Brook receives a 15,000 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: $40,000 $25,000 ($5,000) In addition, show the resulting entries to each partner’s capital account. Tatum’s capital account balance is $50,000 and Brook’s is $60,000.
9. A partnership showed the following account balances: sales, P70,000; cost of sales,P40,000; operating expenses. P10,000; partners’ salaries, P13,000; interest paid tobanks, P2,000; interest allowances on average capital balances, P2,500 and partners’drawings, P8,000. How much is the partnership profit?
35. The statement of financial position for the partnership of BBB, CCC and DDD who share profits in the ratio of 2:1:1, shows the following balances just before the liquidation: Cash P12,000Other assets 59,500Liabilities 49,000BBB, capital 22,000CCC, capital 15,500DDD, capital (15,000) On the first installment of the liquidation, a gain of P8,525 was realized from the sale of certain assets. Liquidation expenses of P1,000 was paid, and additional liquidation expenses are anticipated. Liabilities paid amounted to P34,400. Remaining book value of other assets is P1,550. On the first payment to partners, CCC receives P6,250. The amount of cash withheld for anticipated liquidation expenses and unpaid liabilities is: a. 11,475b. 14,600c. 26,075d. 29,200