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Assets Liabilities and Capital Accounts payable Loan payable to Parmer A.. A, capital... B, capital . C, capital... Total liabilities .... $ 20,000 88,000 70,000 $ 92,000 70,000 Cash Receivables (net) Inventory . . Equipment (net) Other assets.. 145,000 55,000 46,000 90,000 80,000 Total assets $378,000 $378,000

Assets Liabilities and Capital Accounts payable Loan payable to Parmer A.. A, capital... B, capital . C, capital... Total liabilities .... $ 20,000 88,000 70,000 $ 92,000 70,000 Cash Receivables (net) Inventory . . Equipment (net) Other assets.. 145,000 55,000 46,000 90,000 80,000 Total assets $378,000 $378,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.

Assets Liabilities and Capital Accounts payable Loan payable to Parmer A.. A, capital... B, capital . C, capital... Total liabilities .... $ 20,000 88,000 70,000 $ 92,000 70,000 Cash Receivables (net) Inventory . . Equipment (net) Other assets.. 145,000 55,000 46,000 90,000 80,000 Total assets $378,000 $378,000
Transcribed Image Text:Assets Liabilities and Capital Accounts payable Loan payable to Parmer A.. A, capital... B, capital . C, capital... Total liabilities .... $ 20,000 88,000 70,000 $ 92,000 70,000 Cash Receivables (net) Inventory . . Equipment (net) Other assets.. 145,000 55,000 46,000 90,000 80,000 Total assets $378,000 $378,000
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