Advanced Accounting
Advanced Accounting
14th Edition
ISBN: 9781260726435
Author: Joe Ben Hoyle
Publisher: Mcgraw-hill Higher Education (us)
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Chapter 15, Problem 18P

a.

To determine

Determine the amount of cash that safely can be paid to partners prior to liquidation of noncash assets.

b.

To determine

Determine how the safe amount of cash determined in (a) be distributed to the partners.

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The following condensed balance sheet is presented for the partnership of Der, Egan, and Oprins, who share profits and losses in the ratio of 4:3:3, respectively. Cash $ 40,000 Accounts Payable $ 150,000 Other Assets 710,000 Der, Capital 260,000 Egan, Capital 180,000 Oprins, Capital 160,000 Total Assets $750,000 Total Liabilities and Capital $ 750,000 Assume that the partnership decides to admit Snider as a new partner with a 25 percent interest. g. Other assets are revalued down by $20,000 and a bonus of $40,000 is paid to Snider at the time of admission. CREATE THE FOLLOWING JOURNAL ENTRY PLEASE: Record the revaluation of the assets and the allocation of the loss to the partners
The following condensed statement of financial position is presented for the partnership of Morales, Gamino, and Quito, who share profits and losses in the ratio of 4:3:3, respectively. Cash                 40,000      Accounts Payable              150,000Other assets    710,000     Morales, capital                 260,000                                          Gamino, capital                 180,000                                          Quito, capital                    160,000Total assets     750,000     Total Liabilities & Capital   750,000Assume that the partnership decided to admit abello as a new partner with a one fourth interest.Required:For each of the following independent cases, determine the amount that abello must contribute in cash or other assets.1. No goodwill or bonus will be recorded. 2. A bonus of P24,000 is to be paid by abello and allocated to the prior partners. 3. The partners agreed that total resulting capital should be P820,000 and no goodwill should…
2. The following condensed balance sheet is presented for the partnership of Joseph and Emman, who share profits and losses in the ratio of 60:40, respectively: Other Assets Emman, loan Total P500,000 20,000 P520,000 Accounts Payable Joseph, Capital Emman, Capital Total P120,000 220,000 180,000 P520,000 The partners decided to liquidate the partnership. If the assets are sold for P345,000, what amount of the available cash should be distributed to Emman? Show your solution.
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