The following balance sheet is for a local partnership in which the partners have become very unhappy with each other. Cash $ 46,000 Liabilities $ 36,000 Land 160,000 Adams, capital 96,500 Building 150,000 Baker, capital 45,000 Carvil, capital 72,000 Dobbs, capital 106,500 Total assets $ 356,000 Total liabilities and capital $ 356,000 To avoid more conflict, the partners have decided to cease operations and sell all assets. Using this information, answer the following questions. Each question should be viewed as an independent situation related to the partnership’s liquidation. The $10,000 cash that exceeds the partnership liabilities is to be disbursed immediately. If profits and losses are allocated to Adams, Baker, Carvil, and Dobbs on a 2:3:3:2 basis, respectively, how will the $10,000 be divided? The $10,000 cash that exceeds the partnership liabilities is to be disbursed immediately. If profits and losses are allocated on a 2:2:3:3 basis, respectively, how will the $10,000 be divided? The building is immediately sold for $76,000 to give total cash of $122,000. The liabilities are then paid, leaving a cash balance of $86,000. This cash is to be distributed to the partners. How much of this money will each partner receive if profits and losses are allocated to Adams, Baker, Carvil, and Dobbs on a 1:3:3:3 basis, respectively? (Do not round intermediate calculations.) Assume that profits and losses are allocated to Adams, Baker, Carvil, and Dobbs on a 1:3:4:2 basis, respectively. How much money must the firm receive from selling the land and building to ensure that Carvil receives a portion? (Do not round intermediate calculations.)
The following balance sheet is for a local partnership in which the partners have become very unhappy with each other. Cash $ 46,000 Liabilities $ 36,000 Land 160,000 Adams, capital 96,500 Building 150,000 Baker, capital 45,000 Carvil, capital 72,000 Dobbs, capital 106,500 Total assets $ 356,000 Total liabilities and capital $ 356,000 To avoid more conflict, the partners have decided to cease operations and sell all assets. Using this information, answer the following questions. Each question should be viewed as an independent situation related to the partnership’s liquidation. The $10,000 cash that exceeds the partnership liabilities is to be disbursed immediately. If profits and losses are allocated to Adams, Baker, Carvil, and Dobbs on a 2:3:3:2 basis, respectively, how will the $10,000 be divided? The $10,000 cash that exceeds the partnership liabilities is to be disbursed immediately. If profits and losses are allocated on a 2:2:3:3 basis, respectively, how will the $10,000 be divided? The building is immediately sold for $76,000 to give total cash of $122,000. The liabilities are then paid, leaving a cash balance of $86,000. This cash is to be distributed to the partners. How much of this money will each partner receive if profits and losses are allocated to Adams, Baker, Carvil, and Dobbs on a 1:3:3:3 basis, respectively? (Do not round intermediate calculations.) Assume that profits and losses are allocated to Adams, Baker, Carvil, and Dobbs on a 1:3:4:2 basis, respectively. How much money must the firm receive from selling the land and building to ensure that Carvil receives a portion? (Do not round intermediate calculations.)
Chapter21: Partnerships
Section: Chapter Questions
Problem 65P
Related questions
Question
The following balance sheet is for a local
| Cash | $ | 46,000 | Liabilities | $ | 36,000 | |
| Land | 160,000 | Adams, capital | 96,500 | |||
| Building | 150,000 | Baker, capital | 45,000 | |||
| Carvil, capital | 72,000 | |||||
| Dobbs, capital | 106,500 | |||||
| Total assets | $ | 356,000 | Total liabilities and capital | $ | 356,000 | |
To avoid more conflict, the partners have decided to cease operations and sell all assets. Using this information, answer the following questions. Each question should be viewed as an independent situation related to the partnership’s liquidation.
- The $10,000 cash that exceeds the partnership liabilities is to be disbursed immediately. If
profits and losses are allocated to Adams, Baker, Carvil, and Dobbs on a 2:3:3:2 basis, respectively, how will the $10,000 be divided? - The $10,000 cash that exceeds the partnership liabilities is to be disbursed immediately. If profits and losses are allocated on a 2:2:3:3 basis, respectively, how will the $10,000 be divided?
- The building is immediately sold for $76,000 to give total cash of $122,000. The liabilities are then paid, leaving a cash balance of $86,000. This cash is to be distributed to the partners. How much of this money will each partner receive if profits and losses are allocated to Adams, Baker, Carvil, and Dobbs on a 1:3:3:3 basis, respectively? (Do not round intermediate calculations.)
- Assume that profits and losses are allocated to Adams, Baker, Carvil, and Dobbs on a 1:3:4:2 basis, respectively. How much money must the firm receive from selling the land and building to ensure that Carvil receives a portion? (Do not round intermediate calculations.)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
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