Exercise 16-3 Your answer is partially correct. Try again. The unsuccessful partnership of the Jones Brothers...
Exercise 16-3
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Your answer is partially correct. Try again. |
The unsuccessful partnership of the Jones Brothers is about to undergo liquidation. They have asked you to estimate the amount of cash that each brother will receive. They share profits and losses equally.
| Cash | $23,000 | Liabilities | $32,000 | ||||
| Noncash Assets | 102,000 | Doug, Capital | 53,000 | ||||
| Dave, Capital | 46,000 | ||||||
| Dan, Capital | (6,000 | ) | |||||
| $125,000 | $125,000 |
Both Doug and Dave are personally solvent, but Dan is not. They
estimate that they will receive $54,000 from the sale of the
noncash assets.
Prepare a schedule to estimate the amount of cash each brother will
receive. (Enter credit balance of an account and credit
posting to an account with negative sign preceding the number, e.g.
-45 or parentheses, e.g. (45).)
| (1/3) Doug |
(1/3) Dave |
(1/3) Dan |
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$
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HELP PLEASE! The first expert answer was wrong. This is my second time asking.
Homework Answers
| Statement of Partnership liquidation | ||||||
| Cash + | Non cash assets = | Liabilities + | Capital | |||
| Doug (1/3) | Dave (1/3) | Dan(1/3) | ||||
| Balances before realization | 23000 | 102000 | 32000 | 53000 | 46000 | -6000 |
| Sale of assets and division of loss (Refer W.N -1) | 54000 | -102000 | -16000 | -16000 | -16000 | |
| Balances after realization | 77000 | 0 | 32000 | 37000 | 30000 | -22000 |
| Payment of Liabilities | -32000 | 0 | -32000 | |||
| Balances after payment of liabilities | 45000 | 0 | 0 | 37000 | 30000 | -22000 |
| Capital loss of Dan of $ -22000 to be borne by Doug and Dave in their capital ratio at dissolution date which is 37:30 (As per Garner VS Murray rule) | -12150 | -9850 | 22000 | |||
| Balances after adjusting negative capital of Dan with Doug and Dave | 45000 | 0 | 0 | 24850 | 20150 | 0 |
| Cash distributed to Partners | -45000 | 0 | 0 | -24850 | -20150 | 0 |
| Final balances | 0 | 0 | 0 | 0 | 0 | 0 |
| W.N - 1 ) Loss on realisation of Non cash assets | ||||||
| Book value of Assets | $102,000 | |||||
| Realisation from sale of assets | $54,000 | |||||
| Loss on sale of assets | ($48,000) | To be equally shared by all partners | ||||
Add Answer to:
Exercise 16-3
Your answer is partially correct. Try again.
The unsuccessful partnership of the Jones Brothers...
Exercise 16-3 The unsuccessful partnership of the Jones Brothers is about to undergo liquidation. They have...
Exercise 16-3
The unsuccessful partnership of the Jones Brothers is about to
undergo liquidation. They have asked you to estimate the amount of
cash that each brother will receive. They share profits and losses
equally.
Cash
$23,000
Liabilities
$32,000
Noncash Assets
102,000
Doug, Capital
53,000
Dave, Capital
46,000
Dan, Capital
(6,000
)
$125,000
$125,000
Both Doug and Dave are personally solvent, but Dan is not. They
estimate that they will receive $54,000 from the sale of the
noncash assets.
Prepare...
Exercise 16-5 Your answer is partially correct. Try again. Following is the balance sheet of the...
Exercise 16-5
Your answer is partially correct. Try again.
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...
Partners in Game Tech Partnership decided to liquidate the partnership on June 30, 2021, when the...
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...
Exercise 16-2 John, Jake, and Joe are partners with capital accounts of $85,000, $82,000, and $65,000...
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)
Prepare a schedule of partnership liquidation. (Enter
credit balance of an account and credit posting to an account with
negative...
Statement of Partnership Liquidation After closing the accounts on July 1, prior to liquidating the partnership,...
Statement of Partnership Liquidation After closing the accounts on July 1, prior to liquidating the partnership, the capital account balances of Gold, Porter, and Sims are $36,600, $52,200, and $23,100, respectively. Cash, noncash assets, and liabilities total $55,200, $96,600, and $39,900, respectively. Between July 1 and July 29, the noncash assets are sold for $77,400, the liabilities are paid, and the remaining cash is distributed to the partners. The partners share net income and loss in the ratio of 3:2:1....
Statement of Partnership Liquidation After the accounts are closed on April 10, prior to liquidating the...
Statement of Partnership Liquidation After the accounts are closed on April 10, prior to liquidating the partnership, the capital accounts of Zach Fairchild, Austin Lowes, and Amber Howard are $39,100, $6,900, and $30,300, respectively. Cash and noncash assets total $10,000 and $76,700, respectively. Amounts owed to creditors total $10,400. The partners share income and losses in the ratio of 1:1:2. Between April 10 and April 30, the noncash assets are sold for $40,700, the partner with the capital deficiency pays...
Statement of Partnership Liquidation After the accounts are closed on April 10, prior to liquidating the...
Statement of Partnership Liquidation After the accounts are closed on April 10, prior to liquidating the partnership, the capital accounts of Zach Fairchild, Austin Lowes, and Amber Howard are $38,200, $6,900, and $31,200, respectively. Cash and noncash assets total $9,600 and $76,700, respectively. Amounts owed to creditors total $10,000. The partners share income and losses in the ratio of 1:1:2. Between April 10 and April 30, the noncash assets are sold for $40,700, the partner with the capital deficiency pays...
After the accounts are closed on February 3, prior to liquidating the partnership, the capital accounts...
After the accounts are closed on February 3, prior to liquidating the partnership, the capital accounts of William Gerloff, Joshua Chu, and Courtney Jewett are $19,140, $4,700, and $21,860, respectively. Cash and noncash assets total $5,660 and $54,780, respectively. Amounts owed to creditors total $14,740. The partners share income and losses in the ratio of 2:1:1. Between February 3 and February 28, the noncash assets are sold for $33,580, the partner with the capital deficiency pays the deficiency to the...
Exercise 16-2 John, Jake, and Joe are partners with capital accounts of $85,000, $82,000, and $65,000...
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...
Exercise 16-3
The unsuccessful partnership of the Jones Brothers is about to
undergo liquidation. They have asked you to estimate the amount of
cash that each brother will receive. They share profits and losses
equally.
Cash
$23,000
Liabilities
$32,000
Noncash Assets
102,000
Doug, Capital
53,000
Dave, Capital
46,000
Dan, Capital
(6,000
)
$125,000
$125,000
Both Doug and Dave are personally solvent, but Dan is not. They
estimate that they will receive $54,000 from the sale of the
noncash assets.
Prepare...
Exercise 16-5
Your answer is partially correct. Try again.
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...
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...
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)
Prepare a schedule of partnership liquidation. (Enter
credit balance of an account and credit posting to an account with
negative...
Statement of Partnership Liquidation After closing the accounts on July 1, prior to liquidating the partnership, the capital account balances of Gold, Porter, and Sims are $36,600, $52,200, and $23,100, respectively. Cash, noncash assets, and liabilities total $55,200, $96,600, and $39,900, respectively. Between July 1 and July 29, the noncash assets are sold for $77,400, the liabilities are paid, and the remaining cash is distributed to the partners. The partners share net income and loss in the ratio of 3:2:1....
Statement of Partnership Liquidation After the accounts are closed on April 10, prior to liquidating the partnership, the capital accounts of Zach Fairchild, Austin Lowes, and Amber Howard are $38,200, $6,900, and $31,200, respectively. Cash and noncash assets total $9,600 and $76,700, respectively. Amounts owed to creditors total $10,000. The partners share income and losses in the ratio of 1:1:2. Between April 10 and April 30, the noncash assets are sold for $40,700, the partner with the capital deficiency pays...
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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