A. The Abrams, Bartle, and Creighton partnership began the process of liquidation with the following balance sheet: Cash $16,00 Non cash Assets $434,000 Liabilities $150,000 Abrams Capital $80,000 Bartle Capital $90,000 Creighton Capital $130,000 Abrams, Bartle, and Creighton share profits and losses in a ratio of 3:2:5. Liquidation expenses are expected to be $12,000. 1. If the non-cash assets were sold for $234,000, what amount of the loss would have been allocated to Bartle? 2. If the non-cash assets were sold for $134,000, which partner(s) would have had to contribute assets to the partnership to cover a deficit in his/her capital account? 3. After the liquidation expenses of $12,000 were paid and the non-cash assets sold, Creighton had a deficit of $8,000. For what amount were the non-cash assets sold?

A. The Abrams, Bartle, and Creighton partnership began the process of liquidation with the following balance sheet: Cash $16,00 Non cash Assets $434,000 Liabilities $150,000 Abrams Capital $80,000 Bartle Capital $90,000 Creighton Capital $130,000 Abrams, Bartle, and Creighton share profits and losses in a ratio of 3:2:5. Liquidation expenses are expected to be $12,000. 1. If the non-cash assets were sold for $234,000, what amount of the loss would have been allocated to Bartle? 2. If the non-cash assets were sold for $134,000, which partner(s) would have had to contribute assets to the partnership to cover a deficit in his/her capital account? 3. After the liquidation expenses of $12,000 were paid and the non-cash assets sold, Creighton had a deficit of $8,000. For what amount were the non-cash assets sold?

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter19: Accounting For Partnerships

Section: Chapter Questions

Problem 5CE

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