Lui, Montavo, and Johnson plan to liquidate their Premium Pool and Spa business. They have always shared profit and losses in a 1:4:5 ratio, and on the day of the liquidation their balance sheet appeared as follows: Premium Pool and Spa Balance Sheet June 30, 2020 Assets Cash $ 84,250 Machinery $ 626,750 Less: Accumulated depreciation 156,000 470,750 Total assets $ 555,000 Liabilities Accounts payable $ 159,600 Equity Jim Lui $ 78,200 Kent Montavo, capital 202,800 Dave Johnson, capital 114,400 Total equity 395,400 Total liabilities and equity $ 555,000
Lui, Montavo, and Johnson plan to liquidate their Premium Pool and Spa business. They have always shared profit and losses in a 1:4:5 ratio, and on the day of the liquidation their balance sheet appeared as follows: Premium Pool and Spa Balance Sheet June 30, 2020 Assets Cash $ 84,250 Machinery $ 626,750 Less: Accumulated depreciation 156,000 470,750 Total assets $ 555,000 Liabilities Accounts payable $ 159,600 Equity Jim Lui $ 78,200 Kent Montavo, capital 202,800 Dave Johnson, capital 114,400 Total equity 395,400 Total liabilities and equity $ 555,000
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 42E: Determining Cash Flows 1from Investing Activities Airco owns several aircraft and its balance sheet...
Related questions
Question
Lui, Montavo, and Johnson plan to liquidate their Premium Pool and Spa business. They have always shared
Premium Pool and Spa Balance Sheet June 30, 2020 |
||||||
Assets | ||||||
Cash | $ | 84,250 | ||||
Machinery | $ | 626,750 | ||||
Less: Accumulated |
156,000 | 470,750 | ||||
Total assets | $ | 555,000 | ||||
Liabilities | ||||||
Accounts payable | $ | 159,600 | ||||
Equity | ||||||
Jim Lui | $ | 78,200 | ||||
Kent Montavo, capital | 202,800 | |||||
Dave Johnson, capital | 114,400 | |||||
Total equity | 395,400 | |||||
Total liabilities and equity | $ | 555,000 | ||||
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 4 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT