E 17-3 Liquidation—Cash distribution computation, safe payments schedule Fed, Ela, and Luc have decided to liquidate their partnership. Account balances on January 1, 2016, are as follows: Cash $160,000 Accounts payable $60,000 Other assets 180,000 Fed capital (30%) 110,000 $340,000 Ela capital (30%) 50,000 Luc capital (40%) 120,000 $340,000 The partners agree to keep a $30,000 contingency fund and to distribute available cash immediately. Required Determine the amount of cash that should be paid to each partner.
Q: 6. The assets and equities of the Perdales, Ceballus and Bandonell partnership at the end of its…
A: SOLUTION- EXPLANATION- PERDALES (45000 / 30%) 150000 CEBALLUS (30000 / 50%) 60000…
Q: The condensed balance sheet of Alex, Jay, and John as of March 31, 2006 follows: P 28,000 265,000…
A: Liquidation means where the company affair has been closed and payment is made to the outside…
Q: Exercise 11-14 Liquidation of a partnership LO5 David Wallace, Olena Dunn, and Danny Lin were…
A: Liquidation of Partnership - Liquidation of partnership is the process of selling all the assets…
Q: AA and BB are partners with capital accounts that had the following transactions during 2022: AA…
A: Interest on capital to AA: = Opening Capital x 9% = P270,000 x 9% = P24,300
Q: Partners Mickey, Minnie, Donald and Daisy share profits in the ratio of 3:3:11 respectively. A…
A: As per Partnership Act in the above situation the loans from partners will be…
Q: Partnership Liquidation by Installment On May 31, 2017 the statement of Financial Positions of AB,…
A: A liquidation in the partnership refers to complete dissolution of partnership business. In such a…
Q: IV On December 31, 2020, the Statement of Financial Position of ABC Partnership with profit or loss…
A: Given:
Q: 3. Balances before liquidation of the partnership of Kayang, Kaya, Ko, Kaya2 and Co. are as follows:…
A: Step 1: At the time of liquidation, after selling of assets the amount available for distribution…
Q: ACC 114 PARTNERSHIP AND CORPORATE LIQUIDATION 1. ABC Partnership is winding up its affairs and…
A: In the event of liquidation, there is a priority order to be followed while discharging the…
Q: Problem 7 On March 1, 2018, X and Y formed a partnership. The partners contributed the following X Y…
A: Partnership is one of the form of business organisation. Under this, two or more than two persons…
Q: Problem2. A, B, C Partnership began the process of liquidation with the following balance sheet:…
A: Total realisation loss (deficit ) = P8,00050% = P16,000 A's share of realisation loss (deficit ) =…
Q: On January 1, 20x20, ACJ Partnership entered into liquidation. The partners' capital balances on…
A: Balance Sheet Liabilities and Capital Amount Assets Amount Loan from C P600,000…
Q: The trial balance of A, B, and D at December 31, 2021 after all adjustments have been made is as…
A: 6.
Q: 17 A balance sheet for the partnership of A, B, and C, who share profits 2:1:1, shows the following…
A: Liquidation means where the company decide to close out the operations , sell all the assets and…
Q: 27. On December 31, 2020, the partnership of Abe, Bravo, Charlie and Delfin decided to liquidate…
A: Liquidation of the partnership means cessation or end of partnership business. First all non cash…
Q: 82. On March 1, 2013, S and P formed a partnership with each contributing the following assets. *…
A: Solution: On march 1, ,2013, P's capital account = Fair value of assets contributed in partnership -…
Q: E 17-7 Statement of partnership liquidation The partnership of Ali, Bev, and Cal became insolvent…
A: Partnership is an agreement between two or more persons in which they invest capital, run business…
Q: P 17-4 Installment liquidation The partnership of Gil, Hal, Ian, and Joe is preparing to liquidate.…
A: Liquidation is a process where the company accounts are closed by selling off the assets of company,…
Q: 2. The partnership of AAA, BBB, and CCC was dissolved on June 30, 2020 and account balances after…
A: A partnership may be a formal course of action by two or more parties to oversee and work trade and…
Q: A balance sheet for the partnership of Suzy, Millette and Myra, who share profits in the ratio of…
A: (1) Calculation of Remainder of Capital after 1st payment : (2) Profit and Loss sharing Ratio of…
Q: Problem Solving : a. Gulane, Tormis and Sailadin decided to Liquidate their partnership in June 30,…
A: Liquidation means where the company decide to close out the operations , sell all the assets and…
Q: Jan, Kim, and Lee announce plans to liquidate their partnership immediately. The assets, equities,…
A: Partnership Liquidation: It is the process of closing down the business of partnership firm. Thus,…
Q: Barbie, Capital January 1 Balance May P210,000 90,000 P 60,000 1 Investment October 1 Withdrawal…
A:
Q: The balance sh the Delphine, Xavier, and Olivier partnership follows: Cash Noncash assets $ 69,360…
A: Assets: Cash = $ 69,360 Non-Cash Assets = $126,000 Liabilities: Outside Liabilities = $ 46,500…
Q: ACJ Partnership entered into liquidation.
A: Since you've got asked multiple queries underneath one question. Kindly repost the question beside…
Q: Requirement: Compute for the cash distributions to the partners. Case 2: Installment liquidation…
A: Answer: If the partnership decides to liquidate, the assets of the partnership are sold,liabilities…
Q: 19. Partner Ae first contributed P50,000 of capital into existing partnership on March 1, 2016. On…
A: solution : given date and amount of contribution and drawings Date Amount March1 2016…
Q: ute cash as it becomes available. At each end of the month. On February 28, 2018 some assets were…
A: The distribution of Cash is in the following sequence: i) Payments for the Liabilities ii) Payment…
Q: Cash 60,000 Liabilities Adams, capital Baker, capital Carvil, capital Dobbs, capital 50,000 149,500…
A: Part A :- When $ 10,000 is to be disbursed in Adams, Baker, Carvil and Dobbs in profit sharing ratio…
Q: 1. Done is as follows: one Partnership is undergoing liquidation. Information on Cash Accounts…
A: This question deals with the concept of liquidation of partnership firm. Liquidation may happen with…
Q: On January 1, 2018, ACJ Partnership entered into liquidation. The partners' profit and loss ratios…
A:
Q: E 16-11 Partner retirement entries Capital balances and profit- and loss-sharing ratios for the Nix,…
A: Compute the goodwill of the firm:
Q: Financial position for ZBM Partnership at December 31 2019: Cash 26,000 Accounts Payable 45,000…
A: In the partnership liquidation after assets…
Q: Assume the following assets, liabilities, and partners’ equity in the Chang and Lee partnership on…
A: Partnership business means where two or more person comes together to do the business…
Q: Statement of partnership liquidation Eli, Joe, and Ned agree to liquidate their consulting practice…
A: Meaning of Partnership Liquidation: It is the method of shutting down the partner firm's business.…
Q: The post closing account balances on December 31, 2011 for the partnership of EGD are as follows:…
A: The dissolution of the firm is done by selling off all the assets and pay all the liabilities. The…
Q: Problem1. Assume the following data for ABC Partnership had the following condensed balance sheet…
A: Non-cash assets are defined as follows. These are assets that you and your spouse own that cannot be…
Q: Problem #15 The assets and equities of the Perdales, Ceballus and Bandonell partnership at the of…
A: In a partnership, two or more parties agree to operate and manage a business and share the profits…
Q: 3. As of January 1, 2018, the partnership of Canton, Yulls, and Garr had the following account…
A: When the partnership business comes to the verge of liquidation, all the assets are sold and…
Q: Problem #16 Installment Liquidation: Schedule of Safe Payments The statement of financial position…
A: Installment Liquidations. Installment liquidations involve the distribution of money to partners…
Q: Rules for the Distribution of Profits or Losses In January 2018, Nick Marasigan and Dems Asacta…
A: Partnership firm is formed with two partners. This organization would be beneficial to all partners…
Q: E 17-1 Simple liquidation—Schedule of cash available The partnership of Flo and Fay is in the…
A: Liquidation: Liquidation is a process of dissolving the business, realizing the assets, repaying the…
Q: EXERCISE 10. Journal Entries and Statement Preparation: With capital deficiency; solvent/insolvent…
A: You have posted multiple-part questions, so as per our policy only the first three sub-parts are…
Q: Exercise 4 The balance sheet of the Jody, Kane, and Lark partnership on May 1, 2016 (before…
A: Introduction Partnership is the association of two or more persons who have agreed to share their…
Q: P 17-8 Installment liquidation—Safe payments schedule Jax, Kya, and Bud, who share partnership…
A: Liquidation: It is an event where company become insolvent and assets are distributed to claimants.…
Q: 1. Done Partnership is undergoing liquidation. Information on Done is as follows: Cash Accounts…
A: Liquidation of Partnership Firm: If It's impossible to continue doing business if you dissolve a…
Q: E 17-6 Safe payments schedule A condensed balance sheet with profit-sharing percentages for the Eve,…
A:
Q: Cash P 28,000 265,000 P 48,000 95,000 80,000 70,000 P 293.000 Other assets Liabilities Alex, capital…
A: Answer: As of March 31, 2011, the following is the alex, jay, and john's simplified balance sheet:…
E 17-3 Liquidation—Cash distribution computation, safe payments schedule
Fed, Ela, and Luc have decided to liquidate their
|
Cash |
$160,000 |
Accounts payable |
$60,000 |
|
Other assets |
180,000 |
Fed capital (30%) |
110,000 |
|
|
$340,000 |
Ela capital (30%) |
50,000 |
|
|
|
Luc capital (40%) |
120,000 |
|
|
|
|
$340,000 |
The partners agree to keep a $30,000 contingency fund and to distribute available cash immediately.
Required
Determine the amount of cash that should be paid to each partner.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- E 17-4 Liquidation—Cash distribution computation, safe payments schedule Jan, Kim, and Lee announce plans to liquidate their partnership immediately. The assets, equities, and profit- and loss-sharing ratios are summarized as follows. Loan to Kim $ 20,000 Accounts payable $ 60,000 Other assets 180,000 Jan capital (50%) 59,000 $200,000 Kim capital (30%) 29,000 Lee capital (20%) 52,000 $200,000 The other assets are sold for $120,000, and an overlooked bill for landscaping services of $5,000 is discovered. Kim cannot pay her partnership debt at the present time, but she expects to have the money in a month or two. Required Determine how cash should be distributed to creditors and partners.E 17-1 Simple liquidation—Schedule of cash available The partnership of Flo and Fay is in the process of liquidation. On January 1, 2016, the ledger shows account balances as follows: Cash $10,000 Accounts payable $25,000 Accounts receivable 45,000 Flo capital 45,000 Lumber inventory 50,000 Fay capital 35,000 On January 10, 2016, the lumber inventory is sold for $40,000, and during January, accounts receivable of $41,000 is collected. No further collections on the receivables are expected. Profits are shared 60 percent to Flo and 40 percent to Fay. Required Prepare a schedule showing how the cash available on February 1, 2016, should be distributed.P 17-4 Installment liquidation The partnership of Gil, Hal, Ian, and Joe is preparing to liquidate. Profit- and loss-sharing ratios are shown in the summarized balance sheet at December 31, 2016, as follows: Cash $100,000 Other liabilities $ 50,000 Inventories 100,000 Gil capital (40%) 150,000 Loan to Hal 10,000 Hal capital (30%) 160,000 Other assets 255,000 Ian capital (20%) 50,000 Joe capital (10%) 55,000 $465,000 $465,000 Required The partners anticipate an installment liquidation. Prepare a cash distribution plan as of January 1, 2017, that includes a $25,000 contingency fund to help the partners predict when they will be included in cash distributions. During January 2017, the inventories are sold for $100,000, the other liabilities are paid, and $50,000 is set aside for contingencies. The partners agree that loan balances should be closed to capital accounts and that remaining cash (less the…
- E 17-7 Statement of partnership liquidation The partnership of Ali, Bev, and Cal became insolvent during 2016, and the partnership ledger shows the following balances after all partnership assets have been converted into cash and all available cash distributed: Debit Credit Accounts payable $ 30,000 Ali capital 20,000 Bev capital $120,000 Cal capital 70,000 $120,000 $120,000 Profit- and loss-sharing percentages for the three partners are Ali, 30 percent; Bev, 40 percent; and Cal, 30 percent. The personal assets and liabilities of the partners are as follows: Ali Bev Cal Personal assets $60,000 $110,000 $60,000 Personal liabilities 50,000 60,000 40,000 Required Prepare a schedule to show the…17-18. The balance sheet of partners DES, PA and SITO as of December 31, 2020 are shown below: Cash– P50,000; Noncash assets – P250,000; Liabilities – P80,000; Des, Capital (50%) – P100,000; Pa, Capital(25%) P75,000; Sito, Capital (25%) – P45,000. On January 2021, certain noncash assets were sold for acertain amount. Liquidation expenses and liabilities of P4,000 and P25,000 were paid. Future liquidationexpenses of P5,000 are anticipated. Pa received P42,750 from the first distribution of available cash.17. How much is the cash received from the realization? a. P120,000b. P140,000c. P130,000d. P75,00011 On January 1, 2017, ACJ Partnership entered into liquidation. The partners’ capital balances on this date were as follows: A (25%) P2,500,000 ; C (35%) P5,400,000 ; J (40%) P3,700,000. The partnership has liabilities amounting to P4,400,000, including a loan from C P600,000. Cash on hand before the start of liquidation is P800,000. Noncash assets amounting to P7,400,000 were sold at book value and the rest of the noncash assets were sold at a loss of P4,200,000. 1. How much cash will be distributed to the partners? Group of answer choices 7,400,000 11,800,000 8,000,000 4,400,000 2. After exhausting the noncash assets of the partnership, assuming all partners has personal assets more than their personal liabilities. How much cash must be invested by the partners to satisfy the claims of the outside creditors and to pay the amount due to the partner/s? Group of answer choices 3,800,000 4,360,000 4,480,000 3,680,000
- E 16-14 Partnership retirement—Revaluation and bonus approaches The capital account balances and profit- and loss-sharing ratios of the Byd, Box, Dar, and Fus partnership on December 31, 2016, after closing entries are as follows: Byd (30%) $30,000 Box (20%) 25,000 Dar (40%) 25,000 Fus (10%) 20,000 Total capital $100,000 Box is retiring from the partnership, and the partners agree that he will receive a cash payment of $35,000 in final settlement of his interest. The book values of partnership assets and liabilities are equal to fair values, except for a building with a book value of $15,000 and a fair value of $25,000. Required Prepare the journal entry or entries to record Box’s retirement assuming that assets are revalued to the basis implied by the excess payment to Box. Prepare the journal entry or entries to record Box’s retirement assuming the bonus approach is used.SCA Partnership has the following account balances before liquidation: Cash P350,000 Liabilities P1,125,000 Noncash assets 7,375,000 Loan from A 50,000 S, Capital (40%) C, Capital (40%) A, Capital (20%) Loan to C 150,000 1,250,000 Receivable from s 20,000 1,900,000 Expenses 2,230,000 1,000,000 Revenues 4,800,000 During June, some noncash assets were sold that resulted to a loss of P46,125. Liquidation expenses of P175,000 were paid and additional expenses armounting to P90,000 were expected to be incurred through the following months of liquidation of the partnership. Liabilities to outsiders amounting to P875,000 were paid. What is the book value of the noncash assets which were sold for C to receive P555,550?E 17-6 Safe payments schedule A condensed balance sheet with profit-sharing percentages for the Eve, Fae, and Gia partnership on January 1, 2016, shows the following: Cash $100,000 Liabilities $80,000 Other assets 500,000 Eve capital (40%) 100,000 Fae capital (40%) 250,000 Gia capital (20%) 170,000 $600,000 $600,000 On January 2, 2016, the partners decide to liquidate the business, and during January they sell assets with a book value of $300,000 for $170,000. Required Prepare a safe payments schedule to show the amount of cash to be distributed to each partner if all available cash, except for a $10,000 contingency fund, is distributed immediately after the sale.
- E 17-8 Statement of partnership liquidation—Partner insolvency case After all partnership assets were converted into cash and all available cash distributed to creditors, the ledger of the Dan, Edd, and Fed partnership showed the following balances: Debit Credit Accounts payable $20,000 Dan capital (40%) 10,000 Edd capital (30%) 60,000 Fed capital (30%) $90,000 $90,000 $90,000 The percentages indicated are residual profit- and loss-sharing ratios. Personal assets and liabilities of the partners are as follows: Dan Edd Fed Personal assets $50,000 $50,000 $100,000 Personal liabilities 45,000 40,000 40,000 The partnership creditors proceed against Fed for recovery of their claims, and the partners settle their…17 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 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 total payment to partners on the initial installment. Indicate the actual answer pleaseINSTALLMENT LIQUIDATIONProblem 1:Jesus, James and Jane are partners who share profits and losses in the ratio of 35:25:40, respectively. Thestatement of financial position of the partnership as of December 31,2017 includes the following accounts:Cash P80,000 Liabilities to outsider P180,000Non cash assets 1,100,000 James, Loan 20,000Jesse, Capital 327,000James, Capital 235,000____________ Jane, Capital ___418,000___Total 1,180,000 Total 1,180,000On January 1, 2018, the partners decided to liquidate their partnership. For the month of January, somenoncash assets were sold at a loss of P20,000. Half of the liabilities to outsiders were settled during January.Jesse received P1,500 from the first cash distribution. Cash withheld for possible liquidation expenses andunrecognized liablities amounted to P12,600. 12. How much is the total cash withheld at the end of January? A. 0 B. 12,600 C. 102,600 D. 171,000 10. What was the carrying value of the noncash assets sold in January?A. 182,600B.…
