Jo, Pat and Espie are partners in a marketing consultancy firm and share profits and losses in the ratio of are 35:35:30 respectively. They decided to liquidate their business on Dec. 31, 2020. The following is the condensed statement of financial position preapred prior liquidation. Account Title Account Balance Debit Credit Cash 250,000.00 Other Assets 3,650,000.00 Liabilities 1,325,000.00 Pat Loan 65,000.00 Espie Loan 75,000.00 Jo, Capital 825,000.00 Pat, Capital Espie, Capital 755,000.00 855,000.00 3,900,000.00 3,900,000.00 The Non Cash Assets are sold for 1,285,000. 00 Partners are personally solvent Prepare a statement of Liquidation and the entries for the liquidation transactions

Jo, Pat and Espie are partners in a marketing consultancy firm and share profits and losses in the ratio of are 35:35:30 respectively. They decided to liquidate their business on Dec. 31, 2020. The following is the condensed statement of financial position preapred prior liquidation. Account Title Account Balance Debit Credit Cash 250,000.00 Other Assets 3,650,000.00 Liabilities 1,325,000.00 Pat Loan 65,000.00 Espie Loan 75,000.00 Jo, Capital 825,000.00 Pat, Capital Espie, Capital 755,000.00 855,000.00 3,900,000.00 3,900,000.00 The Non Cash Assets are sold for 1,285,000. 00 Partners are personally solvent Prepare a statement of Liquidation and the entries for the liquidation transactions

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 10SPB: STATEMENT OF PARTNER SHIP LIQUIDATION WITH LOSS After several years of operations, the partnership...

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Hamilton Companys balance sheet on January 1, 2019, was as follows: Korbel Company is considering purchasing Hamilton (a privately held company) and discovers the following about Hamilton: a. No allowance for doubtful accounts has been established. A 10,000 allowance is considered appropriate. b. Marketable securities are valued at cost. The current market value is 60,000. c. The LIFO inventory method is used. The FIFO inventory of 140,000 would be used if the company is acquired. d. Land, included in property, plant, and equipment, which is recorded at its cost of 50,000, is worth 120,000. The remaining property, plant, and equipment is worth 10% more than its depreciated cost. e. The company has an unrecorded trademark that is worth 70,000. f. The companys bonds are currently trading for 130,000. g. The pension liability is understated by 40,000. Required: 1. Compute the amount of goodwill if Korbel agrees to pay 500,000 cash for Hamilton. 2. Next Level What are the reasons that the book value of Hamiltons net identifiable assets differ from their market value? 3. Prepare the journal entry to record the acquisition on the books of Korbel assuming Hamilton is liquidated. 4. If Korbel agrees to pay only 400,000 cash, how much goodwill exists? 5. If Korbel pays only 400,000 cash, prepare the journal entry to record the acquisition on its books, assuming Hamilton is liquidated.
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Partners Nina, Ricci, and Guess, who share profit and losses in the ratio of 2:2:1, respectively, decided to liquidate. The condensed statement of financial position account balances just prior to the liquidation are: Cash-P 100,000; Other assets-P 400,000; Liabilities - P 140.000: Nina, Loan-P 10,000; Nina, Capital-P45,000: Ricci, Capital -P 105.000; Guess, Capital - P200,000. After paying the llabilities to partnership creditors, cash of P207,500 is available for distribution to partners. Any capital deficiency is made good by the deficient partner, since all three partners are personally solvent. How much was the loss on realization? how much would Nina receive in the final settlement of his interest? how much would Ricci receive in the final settlement of his interest?
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Statement of LLC Liquidation Lester, Torres, and Hearst are members of Arcadia Sales, LLC, sharing income and losses in the ratio of 2:2:1, respectively. The members decide to liquidate the limited liability company. The members' equity prior to liquidation and asset realization on August 1 are as follows: Lester $28,100 Torres 65,000 Hearst 40,400 Total $133,500 In winding up operations during the month of August, noncash assets with a book value of $175,800 are sold for $218,000, and liabilities of $56,500 are satisfied. Prior to realization, Arcadia Sales has a cash balance of $14,200. a. Prepare a statement of LLC liquidation. Enter any subtractions (balance deficiencies, payments, cash distributions, divisions of loss, sale of assets) as negative numbers using a minus sign. If an amount is zero, enter "0". Arcadia Sales, LLC Statement of LLC Liquidation For the Period August 1-31 Cash + NoncashAssets = Liabilities + MemberEquityLester (2/5) +…
the statement of financial position for paraiso and ligeralde partnership on june 1, 2019 before the liquidation is as follows: cash 50,000, other asset 550,000, liabilities 200,000, paraiso capital 225,000, ligeralde capital 175,000. paraiso and ligeralde share profits and losses 60:40 respectively. in june asset with a book value of 220 were sold for 180,000 creditors were paid in full and 20,000 was paid to partners. in july asset with a boook value of 100,000 were sold for 120,000, liquidation expense of 5,000 were paid and cash of 125,000 was paid to to partners. in august, the remaining assets were sold for 225,000. required: 1. how much cash should ligaralde received in june? 2. how much cash should paraiso received in july? how much cash should ligaralde and paraiso received in august?