The following balances as at October 31, 2016 for the Partnership of Wilma, Xelyn, and Yska were as follows: Cash $80,000 Xelyn, loan 24,000 Non-cash assets 640,000 Totals $744,000 Liabilities $24,000 Wilma, loan 36,000 Wilma, capital 168,000 Xelyn, capital 156,000 Yska, capital 360,000 Totals $744,000 Wilma has decided to retire from the partnership on October 31. Partners agreed to adjust the non-cash assets to their fair market value of $784,000. Wilma will be paid $276,800 for her partnership interest inclusive of her loan which is to be paid in full. Their profit and loss ratio is 3:4:3 to Wilma, Xelyn and Yska, respectively. Required: Choice the correct answer with solutions. 1. What will be the balance of Xelyn capital account after the retirement of Wilma. a. $ 258,888 b. $ 264,114
The following balances as at October 31, 2016 for the Partnership of Wilma, Xelyn, and Yska were as follows: Cash $80,000 Xelyn, loan 24,000 Non-cash assets 640,000 Totals $744,000 Liabilities $24,000 Wilma, loan 36,000 Wilma, capital 168,000 Xelyn, capital 156,000 Yska, capital 360,000 Totals $744,000 Wilma has decided to retire from the partnership on October 31. Partners agreed to adjust the non-cash assets to their fair market value of $784,000. Wilma will be paid $276,800 for her partnership interest inclusive of her loan which is to be paid in full. Their profit and loss ratio is 3:4:3 to Wilma, Xelyn and Yska, respectively. Required: Choice the correct answer with solutions. 1. What will be the balance of Xelyn capital account after the retirement of Wilma. a. $ 258,888 b. $ 264,114
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter11: Stockholders' Equity
Section: Chapter Questions
Problem 11.22E
Related questions
Question
The following balances as at October 31, 2016 for the Partnership of Wilma, Xelyn, and Yska were as follows:
Cash $80,000
Xelyn, loan 24,000
Non-cash assets 640,000
Totals $744,000
Liabilities $24,000
Wilma, loan 36,000
Wilma, capital 168,000
Xelyn, capital 156,000
Yska, capital 360,000
Totals $744,000
Wilma has decided to retire from the partnership on October 31. Partners agreed to adjust the non-cash assets to their fair market value of $784,000. Wilma will be paid $276,800 for her partnership interest inclusive of her loan which is to be paid in full. Their profit and loss ratio is 3:4:3 to Wilma, Xelyn and Yska, respectively.
Required:
Choice the correct answer with solutions.
1. What will be the balance of Xelyn capital account after the retirement of Wilma.
a. $ 258,888
b. $ 264,114
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 3 steps with 3 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
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College