A partnership has the following balance sheet prior to liquidation (partners’ profit and loss ratios are in parentheses): Cash . . . . . . . . . . . . . . . . . . . . . $ 33,000 Liabilities . . . . . . . . . . . . . . . . . .$50,000Other assets . . . . . . . . . . . . . . 100,000 Playa, capital (40%) . . . . . . . . .24,000Bahia, capital (30%) . . . . . . . . 29,000Arco, capital (30%) . . . . . . . . . 30,000 During liquidation, other assets are sold for $80,000, liabilities are paid in full, and $15,000 in liquidation expenses are paid. What amount of cash does each partner receive as a result of this liquidation? Choose the correct.a. Playa, $6,000; Bahia, $4,500; Arco, $4,500. b. Playa, $10,000; Bahia, $18,500; Arco, $19,500.c. Playa, $16,000; Bahia, $23,000; Arco, $24,000.d. Playa, $19,200; Bahia, $14,400; Arco, $14,400.

A partnership has the following balance sheet prior to liquidation (partners’ profit and loss ratios are in parentheses): Cash . . . . . . . . . . . . . . . . . . . . . $ 33,000 Liabilities . . . . . . . . . . . . . . . . . .$50,000Other assets . . . . . . . . . . . . . . 100,000 Playa, capital (40%) . . . . . . . . .24,000Bahia, capital (30%) . . . . . . . . 29,000Arco, capital (30%) . . . . . . . . . 30,000 During liquidation, other assets are sold for $80,000, liabilities are paid in full, and $15,000 in liquidation expenses are paid. What amount of cash does each partner receive as a result of this liquidation? Choose the correct.a. Playa, $6,000; Bahia, $4,500; Arco, $4,500. b. Playa, $10,000; Bahia, $18,500; Arco, $19,500.c. Playa, $16,000; Bahia, $23,000; Arco, $24,000.d. Playa, $19,200; Bahia, $14,400; Arco, $14,400.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 1PB: The partnership of Magda and Sue shares profits and losses in a 50:50 ratio after Mary receives a...

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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: A. $40,000 B. $25,000 C. ($5,000) In addition, show the resulting entries to each partners capital account. Tatums capital account balance is $50,000 and Brooks is $60,000.
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.
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)
A balance sheet for the QRS Partnership, which shares profits and losses in the ratio of 5:3:2 shows the following balances just before liquidation: Cash, 30,000; Other assets, 148,750; Liabilities, 50,000; Q, Capital, 55,000; R, Capital, 38,750; S Capital, 35,000. On the first month of liquidation, certain assets are sold for 80,000. Liquidation expenses of 2,500 is paid, and additional expenses are anticipated. Liabilities are paid amounting to 13,500, and sufficient cash is retained to ensure payment to creditors before making payment to partners. On the payments to partners, Q receives 15,625. Calculate the amount of cash withheld for anticipated liquidation expenses.
The following condensed balance sheet is for the partnership of Miller, Tyson, and Watson, who share profits and losses in the ratio of 6:2:2, respectively: Cash $ 62,000 Liabilities $ 41,000 Other assets 142,000 Miller, capital 72,000 Tyson, capital 72,000 Watson, capital 19,000 Total assets $ 204,000 Total liabilities and capital $ 204,000 a. Assuming no liquidation expenses, calculate the safe payments that can be made to partners at this point in time. b. For how much money must the other assets be sold so that each partner receives some amount of cash in a liquidation?
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The following condensed balance sheet is for the partnership of Miller, Tyson, and Watson, who share profits and losses in the ratio of 6:2:2, respectively: Cash $ 50,000 Liabilities $ 42,000 Other assets 150,000 Miller, capital 69,000 Tyson, capital 69,000 Watson, capital 20,000 Total assets $ 200,000 Total liabilities and capital $ 200,000 a. Assuming no liquidation expenses, calculate the safe payments that can be made to partners at this point in time.
A balance sheet for the partnership of A, B, and C, who share profits 2:1:1, shows the following balances just before liquidation: Cash: P48,000Other assets: 238,000Liabilities: 80,000A, Capital: 88,000B, Capital: 62,000C, Capital: 56,000 4. On the first month of liquidation, certain non-cash assets were sold resulting to a loss of P23,000. Liquidation expenses of P4,000 were paid, and additional liquidation expenses of P3,200 are withheld to anticipate payment before liquidation is completed. After creditors were paid, partner B received P13,000 on the initial installment. Determine the total book value of the non-cash assets on the first month.
The following condensed balance sheet is for the partnership of Miller, Tyson, and Watson, who share profits and losses in the ratio of 6:2:2, respectively: Cash $ 63,000 Liabilities $ 53,000 Other assets 160,000 Miller, capital 75,000 Tyson, capital 75,000 Watson, capital 20,000 Total assets $ 223,000 Total liabilities and capital $ 223,000 a. Assuming no liquidation expenses, calculate the safe payments that can be made to partners at this point in time. Miller Tyson Watson Safe payments b. For how much money must the other assets be sold so that each partner receives some amount of cash in a liquidation? other assets must be sold (for an amount less than) or (for an amount over)