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Connect Access Card for Financial Accounting: Information and Decisions
8th Edition
ISBN: 9781259662966
Author: John J Wild
Publisher: McGraw-Hill Education
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Problem 1
D, E, and F are partners with a profit and loss ratio of 5:4:1, respectively. The partnership is to
be liquidated. Prior to the liquidation, the statement of financial position shows the following
balances
P 80,000
720,000
P 80,000
320,000
240,000
160,000
Cash
Liabilities
Other Assets
D, Capital
E, Capital
F, Capital
After realization, E received P120,000 as settlement of his interest.
1. How much was the loss on the sale of assets?
2. How much did F receive in final settlement of his interest?
3. What amount of total cash was distributed to the partners?
Chapter 16
4. The partnership of Xavier, Yarnell and Zablicki have decided to liquidate their partnership. At the
time, the partners share income and loss in the ratio of 2:2:6. No partner can make any payments into
the partnership. The partnership sold the noncash assets for $20,000.
A. Complete the liquidation schedule below
Marshalling of Assets - Simple Liquidation
Noncash
Y,
Beginning balances
Sell noncash assets
Pay creditors
Offset loan
Allocated deficit
Beginning balances
Sell noncash assets
Pay creditors
Payment to partners
B. Now assume the noncash assets were sold for $16,000. Complete the liquidation schedule below
Marshalling of Assets - Simple Liquidation
Offset loan
Allocated deficit
Cash
Assets Liabilities
$5,000 $40,000 $15,000
Payment to partners
Cash
$5,000
Noncash
Assets
$40,000
X
Y,
Loan
Capital Capital
$2,000 $12,000
$1,000
Liabilities
$15,000
Y,
Loan
X₂
Capital
$2,000 $12,000
Y,
Capital
Z₂
Capital
$15,000
$1,000
Z,
Capital
$15,000
Question #7:
Due to the fact that the partnership had been unprofitable for the past several years, A, B, C, and D decided to
liquidate their partnership. The partners share profits and losses in the ratio of 30:30:20:20, respectively. The
following balance sheet was prepared immediately before the liquidation process began:
Cash
Other Assets
Total Assets
ABCD
A B C D Partnership
Balance Sheet
$100,000
550,000
$650,000
The personal status of each partner is as follows:
Personal
Assets
$175,000
100,000
400,000
60,000
Liabilities
A, Capital
B, Capital
C, Capital
D, Capital
OTHER
CASH ASSETS LIABILITIES
$100,000 $550,000
$450,000
Total Lia & Equities
Personal
Liabilities
$ 120,000
140,000
160,000
70,000
30
A
75,000
(urm)
B
$450,000
75,000
60,000
40,000
25,000
$450,000
5-5,000
(40,000)
= 240,000
The partnership's other assets are sold for $200,000 cash. The partnership operates in a state which has
adopted the Uniform Partnership Act.
(10,000)
Required:
A. Complete the following schedule…
Chapter D Solutions
Connect Access Card for Financial Accounting: Information and Decisions
Ch. D - Prob. 1DQCh. D - Prob. 2DQCh. D - Prob. 3DQCh. D - Prob. 4DQCh. D - Prob. 5DQCh. D - Prob. 6DQCh. D - Prob. 7DQCh. D - Prob. 8DQCh. D - Prob. 9DQCh. D - Prob. 10DQ
Ch. D - Prob. 11DQCh. D - Prob. 12DQCh. D - Prob. 1QSCh. D - Prob. 2QSCh. D - Prob. 3QSCh. D - Prob. 4QSCh. D - Prob. 5QSCh. D - Prob. 6QSCh. D - Prob. 7QSCh. D - Prob. 8QSCh. D - Prob. 1ECh. D - Prob. 2ECh. D - Prob. 3ECh. D - Prob. 4ECh. D - Prob. 5ECh. D - Prob. 6ECh. D - Prob. 7ECh. D - Prob. 8ECh. D - Prob. 9ECh. D - Prob. 10ECh. D - Prob. 11ECh. D - Prob. 12ECh. D - Prob. 1PSACh. D - Prob. 2PSACh. D - Prob. 3PSACh. D - Prob. 4PSACh. D - Prob. 5PSACh. D - Prob. 1PSBCh. D - Prob. 2PSBCh. D - Prob. 3PSBCh. D - Prob. 5PSBCh. D - Prob. 3BTN
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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.Similar questions
- STATEMENT OF PARTNER SHIP LIQUIDATION WITH LOSS After several years of operations, the partnership of Delco, Smith, and Walker is to be liquidated. After making closing entries on March 31, 20--, the following accounts remain Open. The noncash assets are sold for 165,000. Profits and losses are shared equally. REQUIRED 1. Prepare a statement of partnership liquidation for the period April 115, 20--, showing the following: (a) The sale of noncash assets on April 1 (b) The allocation of any gain or loss to the partners on April 1 (c) The payment of the liabilities on April 12 (d) The distribution of cash to the partners on April 15 2. Journalize these four transactions in a general journal.arrow_forwardENTRIES FOR DISSOLUTION OF PARTNERSHIP Cummings and Stickel Construction Company, a partnership, is operating a general contracting business. Ownership of the company is divided among the partners, Katie Cummings, Julie Stickel, Roy Hewson, and Patricia Weber. Profits and losses are shared equally. The books are kept on the calendar-year basis. On August 10, after the business had been in operation for several years, Patricia Weber passed away. Mr. Weber wished to sell his wifes interest for 30,000. After the books were closed, the partners capital accounts had credit balances as follows: REQUIRED 1. Prepare the general journal entry required to enter the check issued to Mr. Weber in payment of his deceased wifes interest in the partnership. According to the partnership agreement, the difference between the amount paid to Mr. Weber and the book value of Patricia Webers capital account is allocated to the remaining partners based on their ending capital account balances. 2. Assume instead that Mr. Weber is paid 60,000 for the book value of Patricia Webers capital account. Prepare the necessary journal entry. 3. Assume instead that Julie Stickel (with the consent of the remaining partners) purchased Webers interest for 70,000 and gave Mr. Weber a personal check for that amount. Prepare the general journal entry for the partnership only.arrow_forwardSTATEMENT OF PARTNER SHIP LIQUIDATION WITH LOSS After several years of operations, the partnership of Nelson, Pope, and Williams is to be liquidated. After making closing entries on March 31, 20--, the following accounts remain open: REQUIRED 1. Prepare a statement of partnership liquidation for the period July 120, 20--, showing the following: (a) The sale of noncash assets on July 1 (b) The allocation of any gain or loss to the partners on July 1 (c) The payment of the liabilities on July 15 (d) The distribution of cash to the partners on July 20 2. Journalize these four transactions in a general journal.arrow_forward
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