plan for this partnership. ns transpire during the liquidation of the Wingler, Norris, Rodgers, and Guthrie partnership: of the total accounts receivable with the rest judged to be uncollectible. g, and equipment for $165,000. ents of cash. who has become personally insolvent, will make no further contributions. $75,000. ents of cash again. expenses of $12,000 only. ursements to the partners based on the assumption that all partners other than Guthrie are personally solvent.

plan for this partnership. ns transpire during the liquidation of the Wingler, Norris, Rodgers, and Guthrie partnership: of the total accounts receivable with the rest judged to be uncollectible. g, and equipment for $165,000. ents of cash. who has become personally insolvent, will make no further contributions. $75,000. ents of cash again. expenses of $12,000 only. ursements to the partners based on the assumption that all partners other than Guthrie are personally solvent.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The partners of Sandhill Company have decided to liquidate their business. Noncash assets were sold for $122,840. The income ratios of the partners Cisneros, Gunselman, and Forren are 3 : 2 : 3, respectively. Complete the following schedule of cash payments for Sandhill Company. (If an amount reduces the account balance then enter with a negative sign preceding the number e.g. -15,000 or parenthesis e.g. (15,000).) Item Cash + Noncash Assets = Liabilities + Cisneros Capital + Gunselman Capital + Forren Capital Balance before liquidation $15,600 $88,600 $37,700 $16,800 $35,400 $14,300 Sale of noncash assets and allocation of gain New balances Pay liabilities New Balances Cash distribution to partners…
A business owned by Mel Madrigal was short of cash and she decided to form a partnership with Gel Panganiban, who was able to contribute cash twice (2x) the interest of Mel in the new partnership. The assets contributed by Mel appeared as follows in the balance sheet of her business: Cash, P4,500; Accounts Receivable P94,500; Allowance for doubtful accounts of P3,000; Inventory P210,000; Store equipment P75,000 with an accumulated depreciation of P7,500. Mel and Gel agreed that the allowance for doubtful accounts was inadequate and should be P5,000. They also agreed that the fair value for the inventory is P230,000 and P60,000 for the store equipment. What is the cash contributed by Gel into the partnership was ? what is the amount?
The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its business property. A balance sheet drawn up at this time shows the following account balances: Cash - $66,000 Noncash - $231,000 Liabilities - $46,000 Frick, capital (60%) - $135,000 Wilson, capital (20%) - $37,000 Clarke, capital (20%) - $79,000 The following transactions occured in liquidating its business: Distributed safe payments of cash immediately to the partners. Liquidation expenses of $10,000 are estimated as a basis for this computation. Sold noncash assets with a book value of $98,000 for $66,000. Paid all liabilities. Distributed safe payments of cash again. Sold remaining noncash assets for $53,000. Paid actual liquidation expenses of $8,000 only. Distributedremainingcashtothepartnersandclosedthefinancialrecordsofthebusinesspermanently. Produce a final statement of liquidation for this partnership using the predistribution plan to determine payments of…
The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its business property. A balance sheet drawn up at this time shows the following account balances: Cash $ 64,000 Liabilities $ 44,000 Noncash assets 225,000 Frick, capital (60%) 132,000 Wilson, capital (20%) 36,000 Clarke, capital (20%) 77,000 Total assets $ 289,000 Total liabilities and capital $ 289,000 Part A Prepare a predistribution plan for this partnership. Part B The following transactions occur in liquidating this business: Distributed safe payments of cash immediately to the partners. Liquidation expenses of $9,000 are estimated as a basis for this computation. Sold noncash assets with a book value of $96,000 for $64,000. Paid all liabilities. Distributed safe payments of cash again. Sold remaining noncash assets for $52,000. Paid actual liquidation expenses of $7,000 only. Distributed remaining cash to the…
The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its business property. A balance sheet drawn up at this time shows the following account balances: Cash $ 69,000 Liabilities $ 40,000 Noncash assets 279,000 Frick, capital (60%) 168,000 Wilson, capital (20%) 45,000 Clarke, capital (20%) 95,000 Total assets $ 348,000 Total liabilities and capital $ 348,000 Part A Prepare a predistribution plan for this partnership. Prepare a predistribution plan for this partnership. Frick, Capital Wilson, Capital Clarke, Capital Beginning balances $168,000 $45,000 $95,000 Assumed loss of Schedule 1 Step one balances Assumed loss of Schedule 2 Step two balances Assumed loss of Schedule 3 Step three balances
The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its business property. A balance sheet drawn up at this time shows the following account balances: Cash $ 70,000 Liabilities $ 38,000 Noncash assets 297,000 Frick, capital (60%) 180,000 Wilson, capital (20%) 48,000 Clarke, capital (20%) 101,000 Total assets $ 367,000 Total liabilities and capital $ 367,000 Part A Prepare a predistribution plan for this partnership. Part B The following transactions occur in liquidating this business: Distributed safe payments of cash immediately to the partners. Liquidation expenses of $10,000 are estimated as a basis for this computation. Sold noncash assets with a book value of $120,000 for $70,000. Paid all liabilities. Distributed safe payments of cash again. Sold remaining noncash assets for $64,000. Paid actual liquidation expenses of $8,000 only. Distributed remaining cash to the…
A business owned by Mr. Handa was short of cash and decided to form a partnership with Ms. Kanaba, who was able to contribute cash twice the interest of Mr. Handa in the new partnership. The assets contributed by Mr. Handa appeared in the financial reports as follows: cash, P9,000; accounts receivable, P189,000 with allowance for bad debts of P6,000; merchandise inventory, P420,000; and store equipment, P150,000 with accumulated depreciation of P15,000 Mr. Handa and Ms. Kanaba agreed that the allowance for uncollectible accounts was inadequate and should be increased by P12,000. They also agreed that the fair value for the inventory is P460,000 and for the store equipment is P140,000. How much is the cash contributed by Ms. Kanaba into the partnership? The correct answer should be 1,560,000. Please make a solution, Thanks.
The partnership of Butler, Osman, and Ward was formed several years ago as a local tax preparation firm. Two partners have reached retirement age, and the partners have decided to terminate operations and liquidate the business. Liquidation expenses of $50,000 are expected. The partnership balance sheet at the start of liquidation is as follows: Cash $ 46,000 Liabilities $ 186,000 Accounts receivable 76,000 Butler, loan 46,000 Office equipment (net) 66,000 Butler, capital (25%) 130,000 Building (net) 190,000 Osman, capital (25%) 46,000 Land 180,000 Ward, capital (50%) 150,000 Total assets $ 558,000 Total liabilities and capital $ 558,000 Prepare a predistribution plan for this partnership.
The partnership of Butler, Osman, and Ward was formed several years ago as a local tax preparation firm. Two partners have reached retirement age, and the partners have decided to terminate operations and liquidate the business. Liquidation expenses of $50,000 are expected. The partnership balance sheet at the start of liquidation is as follows: Cash $ 46,000 Liabilities $ 186,000 Accounts receivable 76,000 Butler, loan 46,000 Office equipment (net) 66,000 Butler, capital (25%) 130,000 Building (net) 190,000 Osman, capital (25%) 46,000 Land 180,000 Ward, capital (50%) 150,000 Total assets $ 558,000 Total liabilities and capital $ 558,000 The following transactions transpire in chronological order during the liquidation of the partnership: Collected 90 percent of the accounts receivable and wrote the remainder off as uncollectible. Sold the office equipment for $28,000, the building for…
A business owned by A1 was short of cash and she decided to form a partnership with A2, who was able to contribute cash 1.5 times the interest of A1 in the new partnership. The assets contributed by A1 appeared as follows in the statement of the financial position of her business: cash, P8,000; accounts receivable, P188,000; with allowance for uncollectible accounts of P5,000; merchandise inventory, P419,000 and store equipment, P149,000 with accumulated depreciation of P14,000. A1 and A2 agreed that the allowance for uncollectible accounts was inadequate and should be P10,000. They also agreed that the fair value for the inventory is P455,000 and the store equipment is P120,000. The cash contributed by A2 into the partnership is ____.
ABC Corporation currently has $20,000 in cash, $30,000 in noncash assets, and liabilities of $35,000. The partners, Adrian, Batch, and Crenshaw, had capital balances of $5,000, $8,000, and $2,000, respectively. The partners share a profit and loss ratio of 1:1:3. The noncash assets were sold for $20,000. Any capital deficiencies are resolved by a cash contribution by the deficient partner. Complete the liquidation chart below. Statement of Partnership Liquidation Cash Noncash Assets Liabilities Capital Adrian Batch Crenshaw Balances before realization Sale of assets and division of loss or gain Balances after realization Payment of liabilities Balances after payment of liabilities Receipt of deficiency Balances Cash distributed to partners…
After several years of operation, the partnership of Raimondo, Rodriguez, and Rosenfeld is being liquidated. After making closing entries on September 30, 20--, the following accounts remain open: Cash 18,000 Merchandise inventory 73,000 Other assets 157,000 Accounts payable 61,000 M. A. Raimondo, capital 50,000 M. E. Rodriguez, capital 50,000 C. R. Rosenfeld, capital 87,000 The noncash assets are sold for $275,000. Profits and losses are shared equally. Required: a. Prepare journal entries for the sale of the noncash assets on October 1. If an amount box does not require an entry, leave it blank. Page: 1 DATE DESCRIPTION POST.REF. DEBIT CREDIT 1 Oct. 1 fill in the blank 37d400fbffe4f95_2 fill in the blank 37d400fbffe4f95_3 1 2 fill in the blank 37d400fbffe4f95_5 fill in the blank 37d400fbffe4f95_6 2 3 fill in the blank 37d400fbffe4f95_8 fill in the blank 37d400fbffe4f95_9 3 4 fill in the blank…