Soft Bound Version for Advanced Accounting 13th Edition
13th Edition
ISBN: 9781260110579
Author: Hoyle
Publisher: McGraw Hill Education
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Chapter 15, Problem 24P
To determine
Prepare a predistribution plan for the
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A balance sheet for the partnership A, B and C, who share profits 2:1:1 respectively, shows the following balances just before liquidation:
Cash - 48,000Other Assets - 238,000Liabilities - 80,000A Capital - 88,000
B Capital - 62,000C Capital - 56,000On the first month of liquidation, certain non-cash assets were sold resulting to a loss of 23,000. Liquidation expense of 4,000 were paid, and additional liquidation expenses of 3,200 are withheld to anticipate payment before liquidation is completed. After creditors were paid, partner B received 13,000 on the initial installment.
Determine the total book value of the non-cash assets on the first month.
The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation:
Liquidation expenses are estimated to be $15,000. Prepare a predistribution schedule to guide the distribution of cash.
Assume that assets costing $74,000 are sold for $60,000. How is the available cash to be divided?
A balance sheet for the partnership of A, B, and C, who share profits 2:1:1, shows the following balances just before liquidation:
Cash: 48,000
Other Assets: 238,000
Liabilities: 80,000
B, Capital: 62,000
C, Capital: 56,000
On the first month of liquidation, certain non-cash assets were sold resulting to a loss of 23,000. Liquidation expenses of 4,000 were paid, and additionsl liquidation expenses of 3,200 were withheld to anticipate payment before liquidation is completed. After creditors were paid, partner B received 13,000 on the initial installment.
Determine the total book value of the non-cash assets on the first month.
Chapter 15 Solutions
Soft Bound Version for Advanced Accounting 13th Edition
Ch. 15 - Prob. 1QCh. 15 - Prob. 2QCh. 15 - Prob. 3QCh. 15 - Prob. 4QCh. 15 - What is the purpose of a statement of liquidation?...Ch. 15 - Prob. 6QCh. 15 - Prob. 7QCh. 15 - Prob. 8QCh. 15 - What is the purpose of a proposed schedule of...Ch. 15 - Prob. 10Q
Ch. 15 - Prob. 1PCh. 15 - Prob. 2PCh. 15 - Prob. 3PCh. 15 - Prob. 4PCh. 15 - A partnership is considering possible liquidation...Ch. 15 - What is a predistribution plan? a. A list of the...Ch. 15 - Prob. 7PCh. 15 - Prob. 8PCh. 15 - Prob. 9PCh. 15 - Prob. 10PCh. 15 - Prob. 11PCh. 15 - Prob. 12PCh. 15 - Prob. 13PCh. 15 - Prob. 14PCh. 15 - Prob. 15PCh. 15 - Prob. 16PCh. 15 - Prob. 17PCh. 15 - Prob. 18PCh. 15 - Prob. 19PCh. 15 - The following balance sheet is for a local...Ch. 15 - Prob. 21PCh. 15 - Prob. 22PCh. 15 - Prob. 23PCh. 15 - Prob. 24PCh. 15 - Prob. 25PCh. 15 - Prob. 26PCh. 15 - March, April, and May have been in partnership for...Ch. 15 - Prob. 28PCh. 15 - Prob. 29PCh. 15 - Prob. 30PCh. 15 - Prob. 31PCh. 15 - Prob. 32PCh. 15 - Prob. 33P
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- The statement of financial position of the firm AA, BB and CC immediately before liquidation shows the following: Assets 640,000 Liabilities 240,000 AA, Loan 64,000 AA, Capital 168,000 BB, Capital 120,000 CC, Capital 48,000 Total 640,000 AA, BB and CC share profits 5:3:2 respectively. Certain assets are sold for P440,000. Creditors are paid in full, partners are paid P140,000 and cash of P60,000 is withheld for contingencies. How much cash is to be distributed to AA?arrow_forwardA balance sheet for the QRS Partnership, which shares profits and losses in the ratio of 5:3:2 shows the following balances just before liquidation: Cash, 30,000; Other assets, 148,750; Liabilities, 50,000; Q, Capital, 55,000; R, Capital, 38,750; S Capital, 35,000. On the first month of liquidation, certain assets are sold for 80,000. Liquidation expenses of 2,500 is paid, and additional expenses are anticipated. Liabilities are paid amounting to 13,500, and sufficient cash is retained to ensure payment to creditors before making payment to partners. On the payments to partners, Q receives 15,625. Calculate the amount of cash withheld for anticipated liquidation expenses.arrow_forwardA local partnership is to be liquidated. Commissions and other liquidation expenses are expected to total $19,000. The business’s balances prior to the commencement of liquidation is as follows: Cash . . . . . . . . . . . . . . . . . . . $ 27,000 Liabilities . . . . . . . . . . . . . . . $ 40,000Noncash assets . . . . . . . . . 254,000 Simpson, capital (20%) . . . 18,000Hart, capital (40%) . . . . . .. . 40,000Bobb, capital (20%) . . . . . . . 48,000Reidl, capital (20%) . . . . . . . 135,000 Prepare a predistribution plan for this partnership.arrow_forward
- A balance sheet for the partnership of A, B, and C, who share profits 2:1:1, shows the following balances just before liquidation: Cash: P48,000 Other assets: 238,000 Liabilities: 80,000 A, Capital: 88,000 B, Capital: 62,000 C, Capital: 56,000 On the first month of liquidation, certain non- cash assets were sold resulting to a loss of P23,000. Liquidation expenses of P4,000 were paid, and additional liquidation expenses of P3,200 are withheld to anticipate payment before liquidation is completed. After creditors were paid, partner B received P13,000 on the initial installment. Determine total payment to partners on the initial installment.arrow_forwardA balance sheet for the partnership of A, B, and C, who share profits 2:1:1, shows the following balances just before liquidation: Cash: P48,000 Other assets: 238,000 Liabilities: 80,000 A, Capital: 88,000 B, Capital: 62,000 C, Capital: 56,000 On the first month of liquidation, certain non-cash assets were sold resulting to a loss of P23,000. Liquidation expenses of P4,000 were paid, and additional liquidation expenses of P3,200 are withheld to anticipate payment before liquidation is completed. After creditors were paid, partner B received P13,000 on the initial installment. Determine the total book value of the non-cash assets on the first month.arrow_forwardThe Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: Cash $ 61,000 Liabilities $ 55,000 Noncash assets 329,000 Drysdale, loan 42,500 Drysdale, capital (50%) 107,500 Koufax, capital (30%) 97,500 Marichal, capital (20%) 87,500 a-1. Determine the maximum loss that can be absorbed in Step 1. Then, assuming that this loss has been incurred, determine the next maximum loss that can be absorbed in Step 2. a-2. Liquidation expenses are estimated to be $21,000. Prepare a predistribution schedule to guide the distribution of cash. Further, modify the tags in explanation as well. b. Assume that assets costing $99,000 are sold for $72,500. How is the available cash to be divided?arrow_forward
- 4. A balance sheet for the partnership of A, B, and C, who share profits 2:1:1, shows the following balances just before liquidation: Cash: P48,000 Other assets: 238,000 Liabilities: 80,000 A, Capital: 88,000 B, Capital: 62,000 C, Capital: 56,000 On the first month of liquidation, certain non-cash assets were sold resulting to a loss of P23,000. Liquidation expenses of P4,000 were paid, and additional liquidation expenses of P3,200 are withheld to anticipate payment before liquidation is completed. After creditors were paid, partner B received P13,000 on the initial installment. Determine the total book value of the non-cash assets on the first month. Determine total payment to partners on the initial installment.arrow_forwardA balance sheet for the partnership of A, B, and C, who share profits 2:1:1, shows the following balances just before liquidation: Cash: P48,000Other assets: 238,000Liabilities: 80,000A, Capital: 88,000B, Capital: 62,000C, Capital: 56,000 4. On the first month of liquidation, certain non-cash assets were sold resulting to a loss of P23,000. Liquidation expenses of P4,000 were paid, and additional liquidation expenses of P3,200 are withheld to anticipate payment before liquidation is completed. After creditors were paid, partner B received P13,000 on the initial installment. Determine the total book value of the non-cash assets on the first month.arrow_forwardSlick, Tony and Sam partnership began the process of liquidation with the following account balances: Cash 16,000 Non-cash assets 434,000 Liabilities 150,000 Slick, Capital (30%) 80,000 Tony, Capital (20%) 90,000 Sam, Capital (50%) 130,000 Liquidation expenses are expected to be P12,000. After the liquidation expenses of P12,000 had been paid and the non-cash assets sold, Sam had a deficit of P8,000. Assuming all partners are personally insolvent, how much is the final settlement to Tony? P24,000 P34,800 P36,000 P37,200arrow_forward
- A balance sheet for the partnership of A, B, and C, who share profits 2:1:1, shows the following balances just before liquidation: Cash: P48,000Other assets: 238,000Liabilities: 80,000A, Capital: 88,000B, Capital: 62,000C, Capital: 56,000 On the first month of liquidation, certain non-cash assets were sold resulting to a loss of P23,000. Liquidation expenses of P4,000 were paid, and additional liquidation expenses of P3,200 are withheld to anticipate payment before liquidation is completed. After creditors were paid, partner B received P13,000 on the initial installment. Determine total payment to partners on the initial installment.arrow_forwardOn December 31m 3013 The Candy Company has $45,000 in cash, noncash assets of $120,000, liabilities of $50,000. The capital balances of the two partners are Tootsie $70,000 and Reeses $45,000. The firm is liquidated, and $120,000 is received for the noncash assets. Tootsie and Reeses income ratios are 70% and 30%, respectively. Instructions: Develop a cash distribution schedule and show the journal entry for each step in the liquidation process.arrow_forwardVictory Worship Partnership has the following account balances before liquidation (see attached photo):During December, some non-cash assets were sold for a loss of P1,845. Liquidation expenses of P7,000 were paid and additional expenses amounting to P3,600 were expected to be incurred through the following months of liquidating the partnership. Liabilities to outsiders amounting to P35,000 were paid. What is the book value of non-cash assets sold for Co to receive P22,222? A. 83,355 B. 85,200 C. 95,000 D. 93,155arrow_forward
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