of ABC Co. deof ABC Co. decided to liquidate their partnership. TheOn January 1, 20x1, the partnersfollowing information was made available:Cash30,000Accounts receivable380,000Inventory260,000Furniture & fixtures, net120,000Total790,000Accounts payable165,000A, Capital (70%)350,000Capital (30%)275,000TotalNTIA90,000tnershipC offered to buy for $760,000 the partnership assets including liabilities but excludingcash and after certain assets are to be restated to their fair values as follows:Accounts receivable, $350,000Inventory, P250,000Furniture, P135,000How much will A and B receive as final settlement of their partnership interests?ITX₁

To calculate the amount A & B will recevice the final settlement we need to calculate the fair…

On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership. The following information was made available: Cash 30,000 Accounts receivable 380,000 Inventory 260,000 Furniture & fixtures, net 120,000 Total 790,000 Accounts payable 165,000 A, Capital (70%) 350,000 B, Capital (30%) 90,000 C offered to buy for $760,000 the partnership assets including liabilities but excluding cash and after certain assets are to be restated to their fair values as follows: alTa 900 Accounts receivable, $350,000 Inventory, P250,000 Furniture, P135,000 How much will A and B receive as final settlement of their partnership interests?

On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership. The following information was made available: Cash 30,000 Accounts receivable 380,000 Inventory 260,000 Furniture & fixtures, net 120,000 Total 790,000 Accounts payable 165,000 A, Capital (70%) 350,000 B, Capital (30%) 90,000 C offered to buy for $760,000 the partnership assets including liabilities but excluding cash and after certain assets are to be restated to their fair values as follows: alTa 900 Accounts receivable, $350,000 Inventory, P250,000 Furniture, P135,000 How much will A and B receive as final settlement of their partnership interests?

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 5CE

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