Turner, Roth, and Lowe are partners who share income and loss in a 1:4:5 ratio. After lengthy disagreements among the partners and several unprofitable periods, the partners decide to liquidate the partnership. Immediately before liquidation, the partnership balance sheet shows total assets, $140,400; total liabilities, $90,000; Turner, Capital, $3,700; Roth, Capital, $14,600; and Lowe, Capital, $32,100. The cash proceeds from selling the assets were sufficient to repay all but $34,000 to the creditors.
Required:
a. Calculate the loss from selling the assets.
b. Allocate the loss from part a to the partners.
c. Determine how much, if any, each partner should contribute to the partnership to cover any remaining capital deficiency.
Calculate the loss from selling the assets.
Liabilities before liquidation
Proceeds from sale of assets (paid to creditors)
Remaining liabilities
Proceeds from sale of assets
Book value of assets sold
Loss on sale of assets
Calculate the loss from selling the assets.
Liabilities before liquidation = 90000
Proceeds from sale of assets (paid to creditors) = (34000)
Remaining liabilities = 56000
Proceeds from sale of assets = (56000)
Book value of assets sold = 140400
Loss on sale of assets = -84400
Turner, Roth, and Lowe are partners who share income and loss in a 1:4:5 ratio. After...
Turner, Roth, and Lowe are partners who share income and loss in a 1:4:5 ratio. After lengthy disagreements among the partners and several unprofitable periods, the partners decide to liquidate the partnership. Immediately before liquidation, the partnership balance sheet shows total assets, $126,000; total liabilities, $78,000; Turner, Capital, $2,500; Roth, Capital, $14,000; and Lowe, Capital, $31,500. The cash proceeds from selling the assets were sufficient to repay all but $28,000 to the creditors. Can I have an explanation of my...
Turner, Roth, and Lowe are partners who share income and loss in a 1:4:5 ratio (in percents: Turner, 10%; Roth, 40%; and Lowe, 50%). The partners decide to liquidate the partnership. Immediately before liquidation, the partnership balance sheet shows total assets, $126,000; total liabilities, $78,000; Turner, Capital, $2,500; Roth, Capital, $14,000; and Lowe, Capital, $31,500. Cash received from selling the assets was sufficient to repay all but $28,000 to the creditors. Required: a. Calculate the loss from selling the assets....
Turner, Roth, and Lowe are partners who share income and loss in a 1:4:5 ratio (in percents: Turner, 10%; Roth, 40%; and Lowe, 50%). The partners decide to liquidate the partnership. Immediately before liquidation, the partnership balance sheet shows total assets, $126,000; total liabilities, $78,000; Turner, Capital, $2,500; Roth, Capital, $14,000; and Lowe, Capital, $31,500. Cash received from selling the assets was sufficient to repay all but $28,000 to the creditors. Required: a. Calculate the loss from selling the assets....
Use the following information for the Exercises below. [The following information applies to the questions displayed below.] Turner, Roth, and Lowe are partners who share income and loss in a 1:4:5 ratio (in percents: Turner, 10%; Roth, 40%; and Lowe, 50%). The partners decide to liquidate the partnership. Immediately before liquidation, the partnership balance sheet shows total assets, $140,400; total liabilities, $90,000; Turner, Capital, $3,700; Roth, Capital, $14,600; and Lowe, Capital, $32,100. Cash received from selling the assets was sufficient...
Required information [The following information applies to the questions displayed below) Turner, Roth, and Lowe are partners who share income and loss in a 14:5 ratio (in percents: Turner, 10%; Roth, 40%; and Lowe, 50%). The partners decide to liquidate the partnership. Immediately before liquidation, the partnership balance sheet shows total assets, $130,800, total liabilities, $82,000. Turner, Capital, $2,900Roth, Capital, 14,200, and Lowe, Capital, $31.700. Cash received from selling the assets was sufficient to repay all but $30,000 to the...
Saved Quiz Partll i Help Save & Exit Subm Check my work Required information The following information applies to the questions displayed below. Turner, Roth, and Lowe are partners who share income and loss in a 1:4:5 ratio. After lengthy disagreements among the partners and several unprofitable periods, the partners decide to liquidate the partnership Immediately before liquidation, the partnership balance sheet shows total assets, $142,800; total liabilities, $92,000: Turner, Capital, $3,900; Roth, Capital, $14.700; and Lowe, Capital, $32,200. The...
what is the the Sale of Assets & Repaid to Partnership? Saved Help S: Homework Problems i ! Required information Use the following information for the Exercises below. (The following information applies to the questions displayed below) Turner, Roth, and Lowe are partners who share income and loss in a 2:3:5 ratio (in percents: Turner, 20%; Roth, 30%; and Lowe, 50%). The partners decide to liquidate the partnership. Immediately before liquidation, the partnership balance sheet shows total assets, $154,800 total...
What are the Required for A,B & C? mework Problems Saved Help Save & Ch O Required information Use the following information for the Exercises below. (The following information applies to the questions displayed below.) Turner, Roth, and Lowe are partners who share income and loss in a 2:3.5 ratio (in percents: Turner, 20%; Roth, 30%; and Lowe, 50%). The partners decide to liquidate the partnership. Immediately before liquidation, the partnership balance sheet shows total assets, $154,800; total liabilities, $102,000;...
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...
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....