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Exercise 16-2
John, Jake, and Joe are partners with capital accounts of
$85,000, $82,000, and $65,000 respectively. They share profits and
losses in the ratio of 30:40:30. When the partners decide to
liquidate, the business has $67,000 in cash, noncash assets
totaling $261,000, and $96,000 in liabilities. The noncash assets
are sold for $270,000, and the creditors are paid.
(a)
Your answer is partially correct. Try again.
Prepare a schedule of partnership liquidation. (Enter
credit balance of an account and...
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Jake, Sacha, and Brianne own a tour company called Adventure Sports. The partners share profit and losses in a 2:3:9 ratio. After lengthy disagreements among the partners and several unprofitable periods, the friends decided to liquidate the partnership. Before the liquidation, the partnership balance sheet showed total assets, $241,900; total liabilities, $203,000; Jake, Capital, $8,300; Sacha, Capital, $10,300; and Brianne, Capital, $20,300. The cash proceeds from selling the assets were sufficient to repay all but $48,000 to the creditors. Jake...
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The partners of Crane Company have decided to liquidate their business. Noncash assets were sold for $124,380. The income ratios of the partners Cisneros, Gunselman, and Forren are 3:2:3, respectively. Complete the following schedule of cash payments for Crane Company. (If an amount reduces the account balance then enter with a negative sign preceding the number e.g.-15,000 or parenthesis e.g. (15,000).) Cash Liabilities + + Item ince before liquidation + $15,600 Noncash Assets $91,100 Cisneros Capital $19,300 Gunselman Capital $34,200...
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CALCULATOR PRINTER VERSION BACK NEXT Exercise 16-5 Following is the balance sheet of the BDO Partnership: SI Cash Accounts Receivable Inventory Equipment $11,000 42,000 28,000 54,000 $135,000 Liabilities Brink, Capital Davis, Capital Olsen, Capital $13,000 46,000 28,000 48,000 $135,000 The partners share income 40:40:20, respectively. Assume that 70% of the receivables are collected and that inventory with a book value of $16,000 is sold for $12,000. All cash available at this time is to be distributed. Determine the proper distribution...
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Partners Ute, Aggie, and Cougar share profits and losses in the
ratio of 5:3:2, respectively. The partners voted to liquidate the
partnership when its assets, liabilities, and capital were as
follows: Cash $ 15,000 Liabilities from Outside Creditors $55,000
Loan from Aggie 15,000 Non-cash assets 95,000 Capital, Ute 22,000
Capital, Aggie 13,000 __________ Capital, Cougar 5,000 Total Assets
$110,000 Total Liabilities & Equity $110,000 All the noncash
assets of $95,000 were sold for $60,000. Cougar was personally
insolvent and unable...
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Partners in Game Tech Partnership decided to liquidate the partnership on June 30, 2021, when the balances in the partnership's accounts were as follows: Item Cash Balances before liquidation $32,600 Accounts Accumulated Accounts A. Hunt, K. Lally, D. Portman, Receivable Equipment Depreciation Payable Capital Capital Capital $28,000 $48,600 $16,800 $30,200 $42,100 $18,800 $1,300 The partners share profit and loss 5:3:2 for Hunt, Lally, and Portman, respectively. - Your answer is partially correct. Complete the schedule assuming the noncash assets were...
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Check my work Alex and Bess have been in partnership for many years. The partners, who share profits and losses on a 70:30 basis, respectively, wish to retire and have agreed to liquidate the business. Liquidation expenses are estimated to be $7,500. At the date the partnership ceases operations, the balance sheet is as follows: Cash Noncash assets $ 67,000 260,000 Liabilities Alex, capital Bess, capital Total liabilities and capital $ 48,500 182,000 96,500 $ 327,000 Total assets $ 327,000...
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Exercise 16-5
Following is the balance sheet of the BDO Partnership:
Cash
$12,000
Liabilities
$12,000
Accounts Receivable
41,000
Brink, Capital
47,000
Inventory
28,000
Davis, Capital
25,000
Equipment
58,000
Olsen, Capital
55,000
$139,000
$139,000
The partners share income 40:40:20, respectively. Assume that 70%
of the receivables are collected and that inventory with a book
value of $14,000 is sold for $10,000. All cash available at this
time is to be distributed.
Determine the proper distribution of cash, using the safe payment...
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On January 1, 20X1, partners Art, Bru, and Chou, who share
profits and losses in the ratio of 6:2:2, respectively, decide to
liquidate their partnership. The partnership trial balance at this
date follows:
Debit
Credit
Cash
$
19,000
Accounts Receivable
68,500
Inventory
54,500
Machinery and Equipment (net)
191,500
Accounts Payable
$
54,000
Art, Capital
90,500
Bru, Capital
112,500
Chou, Capital
76,500
Total
$
333,500
$
333,500
The partners plan a program of piecemeal conversion of assets to
minimize liquidation losses....
Exercise 16-2
John, Jake, and Joe are partners with capital accounts of
$85,000, $82,000, and $65,000 respectively. They share profits and
losses in the ratio of 30:40:30. When the partners decide to
liquidate, the business has $67,000 in cash, noncash assets
totaling $261,000, and $96,000 in liabilities. The noncash assets
are sold for $270,000, and the creditors are paid.
(a)
Your answer is partially correct. Try again.
Prepare a schedule of partnership liquidation. (Enter
credit balance of an account and...
Jake, Sacha, and Brianne own a tour company called Adventure Sports. The partners share profit and losses in a 2:3:9 ratio. After lengthy disagreements among the partners and several unprofitable periods, the friends decided to liquidate the partnership. Before the liquidation, the partnership balance sheet showed total assets, $241,900; total liabilities, $203,000; Jake, Capital, $8,300; Sacha, Capital, $10,300; and Brianne, Capital, $20,300. The cash proceeds from selling the assets were sufficient to repay all but $48,000 to the creditors. Jake...
The partners of Crane Company have decided to liquidate their business. Noncash assets were sold for $124,380. The income ratios of the partners Cisneros, Gunselman, and Forren are 3:2:3, respectively. Complete the following schedule of cash payments for Crane Company. (If an amount reduces the account balance then enter with a negative sign preceding the number e.g.-15,000 or parenthesis e.g. (15,000).) Cash Liabilities + + Item ince before liquidation + $15,600 Noncash Assets $91,100 Cisneros Capital $19,300 Gunselman Capital $34,200...
CALCULATOR PRINTER VERSION BACK NEXT Exercise 16-5 Following is the balance sheet of the BDO Partnership: SI Cash Accounts Receivable Inventory Equipment $11,000 42,000 28,000 54,000 $135,000 Liabilities Brink, Capital Davis, Capital Olsen, Capital $13,000 46,000 28,000 48,000 $135,000 The partners share income 40:40:20, respectively. Assume that 70% of the receivables are collected and that inventory with a book value of $16,000 is sold for $12,000. All cash available at this time is to be distributed. Determine the proper distribution...
Partners in Game Tech Partnership decided to liquidate the partnership on June 30, 2021, when the balances in the partnership's accounts were as follows: Item Cash Balances before liquidation $32,600 Accounts Accumulated Accounts A. Hunt, K. Lally, D. Portman, Receivable Equipment Depreciation Payable Capital Capital Capital $28,000 $48,600 $16,800 $30,200 $42,100 $18,800 $1,300 The partners share profit and loss 5:3:2 for Hunt, Lally, and Portman, respectively. - Your answer is partially correct. Complete the schedule assuming the noncash assets were...
Check my work Alex and Bess have been in partnership for many years. The partners, who share profits and losses on a 70:30 basis, respectively, wish to retire and have agreed to liquidate the business. Liquidation expenses are estimated to be $7,500. At the date the partnership ceases operations, the balance sheet is as follows: Cash Noncash assets $ 67,000 260,000 Liabilities Alex, capital Bess, capital Total liabilities and capital $ 48,500 182,000 96,500 $ 327,000 Total assets $ 327,000...
Exercise 16-5
Following is the balance sheet of the BDO Partnership:
Cash
$12,000
Liabilities
$12,000
Accounts Receivable
41,000
Brink, Capital
47,000
Inventory
28,000
Davis, Capital
25,000
Equipment
58,000
Olsen, Capital
55,000
$139,000
$139,000
The partners share income 40:40:20, respectively. Assume that 70%
of the receivables are collected and that inventory with a book
value of $14,000 is sold for $10,000. All cash available at this
time is to be distributed.
Determine the proper distribution of cash, using the safe payment...