Horngren's Accounting, The Financial Chapters, Student Value Edition (11th Edition)
11th Edition
ISBN: 9780133876352
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 12, Problem P12.30APGA
Allocating profits and losses to the partners, accounting for withdrawal of a partner, accounting for the liquidation of a
LOT is a partnership owned by Maggie Lafleur, Susan Olay, and Tara Thibert. The partners’ profit-and-loss-sharing agreement is 3:14, respectively. The adjusted trial balances of the partnership at November 30, 2016, follow:
LOT Adjusted November 30, 2016 |
||
Balance | ||
Account Title | Debit | Credit |
Cash | $ 4,000 | |
Merchandise Inventory | 4,000 | |
Building | 235,000 | |
Accumulated |
$ 35,000 | |
Accounts Payable | 15,000 | |
Mortgage Payable | 75,000 | |
Lafleur, Capital | 50,000 | |
Olay, Capital | 65,000 | |
Thibert, Capital | 35,000 | |
Lafleur, Withdrawals | 9,000 | |
Olay, Withdrawals | 3,000 | |
Thibert, Withdrawals | 5,000 | |
Sales Revenue | 65,000 | |
Cost of Goods Sold | 38,000 | |
Salaries Expense | 26,000 | |
Rent Expense | 16,000 |
Requirements
- Prepare statement of partners’ equity for the month ended November 30, 2016. Use a separate column for each partner in the statement of partners’ equity. Assume no new capital contributions during November.
- Prepare the four closing entries for the month ended November 30, 2016.
- Thibert decides to withdraw from the partnership on December 1, 2016. Her settlement includes all the Merchandise Inventory and all of the Cash in exchange for her equity interest in the partnership.
- Immediately after Thibert’s withdrawal, Lafleur and Olay decide to liquidate the partnership. They sell the building for $172,000. Then they pay the liabilities and distribute the cash to complete the liquidation. Journalize these liquidation entries. Assume the profit-and-loss-sharing ratios remain the same.
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Horngren's Accounting, The Financial Chapters, Student Value Edition (11th Edition)
Ch. 12 - Prob. 1QCCh. 12 - Prob. 2QCCh. 12 - Prob. 3QCCh. 12 - Which financial statement shows the changes in...Ch. 12 - Prob. 5QCCh. 12 - Prob. 6QCCh. 12 - Prob. 7QCCh. 12 - Peter and Steve admit Meredith to their...Ch. 12 - Prob. 9QCCh. 12 - Prob. 10QC
Ch. 12 - Prob. 1RQCh. 12 - Prob. 2RQCh. 12 - Prob. 3RQCh. 12 - Prob. 4RQCh. 12 - Prob. 5RQCh. 12 - Prob. 6RQCh. 12 - Prob. 7RQCh. 12 - Prob. 8RQCh. 12 - Prob. 9RQCh. 12 - Prob. 10RQCh. 12 - Prob. 11RQCh. 12 - Prob. 12RQCh. 12 - Prob. 13RQCh. 12 - Prob. 14RQCh. 12 - Prob. 15RQCh. 12 - What are the three steps involved in liquidation...Ch. 12 - Prob. 17RQCh. 12 - Prob. S12.1SECh. 12 - Prob. S12.2SECh. 12 - Prob. S12.3SECh. 12 - Prob. S12.4SECh. 12 - Prob. S12.5SECh. 12 - Prob. S12.6SECh. 12 - Prob. S12.7SECh. 12 - Prob. S12.8SECh. 12 - Prob. S12.9SECh. 12 - Prob. S12.10SECh. 12 - Prob. S12.11SECh. 12 - Prob. S12.12SECh. 12 - Prob. E12.13ECh. 12 - Prob. E12.14ECh. 12 - Prob. E12.15ECh. 12 - Prob. E12.16ECh. 12 - Prob. E12.17ECh. 12 - Prob. E12.18ECh. 12 - Prob. E12.19ECh. 12 - Prob. E12.20ECh. 12 - Prob. E12.21ECh. 12 - Prob. E12.22ECh. 12 - Prob. P12.23APGACh. 12 - Prob. P12.24APGACh. 12 - Prob. P12.25APGACh. 12 - Prob. P12.26APGACh. 12 - Prob. P12.27APGACh. 12 - Prob. P12.28APGACh. 12 - Prob. P12.29APGACh. 12 - Allocating profits and losses to the partners,...Ch. 12 - Prob. P12.31BPGBCh. 12 - Prob. P12.32BPGBCh. 12 - Prob. P12.33BPGBCh. 12 - Prob. P12.34BPGBCh. 12 - Prob. P12.35BPGBCh. 12 - Prob. P12.36BPGBCh. 12 - Prob. P12.37BPGBCh. 12 - Prob. P12.38BPGBCh. 12 - P12-40 Accounting for partner contributions,...Ch. 12 - Prob. 12.1DCCh. 12 - Prob. 12.2DCCh. 12 - Prob. 12.1EICh. 12 - Prob. 12.1FSC
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