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Since non-cash assets are sold for 270000 and the same is used to pay off liabilities of $96000, balance cash available for distribution to partners is $174000.
Particulars | Cash | Assets | Liabilities | Profit sharing ratio | John | Jake | Joe |
Receipt of money on selling no-cash assets and post paying liabilities | 174000 | 3:4:3 | 52200 | 69600 | 52200 | ||
Cash | 67000 | 3:4:3 | 20100 | 26800 | 20100 | ||
Total proceeds of liquidation due to partners | 72300 | 96400 | 72300 | ||||
Capital balances | 85000 | 82000 | 65000 | ||||
Excess/(shortfall) received above capital balances | -12700 | 14400 | 7300 |
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...
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 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...
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...
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 16-3 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...
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....