Cash Other assets. Liabilities.. Playa, capital (40%) Bahia, capital (30%). Arco, capital (30%) $ 50,000 24,000 29,000 30,000 100,000 Total $133,000 Total. $133,000

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 11MCQ: Chasse Building Supply Inc. reported net cash provided by operating activities of $243,000, capital...
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A partnership has the following balance sheet prior to liquidation (partners’ profit and loss ratios are in parentheses):

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?

  1. Playa, $6,000; Bahia, $4,500; Arco, $4,500.
  2. Playa, $10,000; Bahia, $18,500; Arco, $19,500.
  3. Playa, $16,000; Bahia, $23,000; Arco, $24,000.
  4. Playa, $19,200; Bahia, $14,400; Arco, $14,400.
Cash
Other assets.
Liabilities..
Playa, capital (40%)
Bahia, capital (30%).
Arco, capital (30%)
$ 50,000
24,000
29,000
30,000
100,000
Total
$133,000
Total.
$133,000
Transcribed Image Text:Cash Other assets. Liabilities.. Playa, capital (40%) Bahia, capital (30%). Arco, capital (30%) $ 50,000 24,000 29,000 30,000 100,000 Total $133,000 Total. $133,000
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