esA partnership is currently holding $400,000 in assets and $234,000 in liabilities. The partnership is to be liquidated, and $20,000 isthe best estimation of the expenses that will be incurred during this process. The four partners share profits and losses as shown.Capital balances at the start of the liquidation follow:Berzina, capital (40%)Horvath, capital (30%)Markov, capital (10%)Petronis, capital (20%)$ 59,00039,00034,00034,000Required:Prepare a predistribution plan to determine which partner will be the first to receive cash from the liquidation and what amount thatpartner will receive before other partners receive any cash.Note: Amounts to be deducted should be entered with a minus sign.Beginning balancesAssumed lossBalancesAssumed lossBalancesAssumed lossBalances$$$$$Berzina59,000 $59,000 $59,000 $(7,000)52,000 $Horvath39,000 $39,000 $39,000 $39,000 $Markov34,000 $(17,000)17,000 $(2,250)14,750 $(1,750)13,000 $Petronis34,00034,000(4,500)29,500(3,500)26,000

The objective of this question is to prepare a predistribution plan for the liquidation of a…

Answered: es A partnership is currently holding…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A partnership is currently holding $400,000 in assets and $234,000 in liabilities. The partnership is to be liquidated, and $20,000 is the best estimation of the expenses that will be incurred during this process. The four partners share profits and losses as shown. Capital balances at the start of the liquidation follow: Berzina, capital (40%) Horvath, capital (30%) Markov, capital (10%) Petronis, capital (20%) $ 59,000 39,000 34,000 34,000 Required: Prepare a predistribution plan to determine which partner will be the first to receive cash from the liquidation and what amount that partner will receive before other partners receive any cash. Note: Amounts to be deducted should be entered with a minus sign. Beginning balances Assumed loss Balances Assumed loss Balances Assumed loss Balances $ Berzina 59,000 $ Horvath 39,000 $ Markov 34,000 $ Petronis 34,000
Jose, Bonl and Tony are partners with a profit and loss ratio of 5:41 The partnership is to be liquidated. Prior to the liquidation process, the Statement of Financial Position shows the following balances: Cash-P 20,000; Other assets-P 180,000; Liabilities-P 20.000; Jose, Capital - P80,000; Boni, Capital-P 60,000: Tony, Capital-P40,000. After realization. Boni received P 32,000 as settlement of his interest. How much is the total loss on realization? In the settlement to partners, how much did Tony receive?
A partnership is currently holding $400,000 in assets and $234,000 in liabilities. The partnership is to be liquidated, and $20,000 is the best estimation of the expenses that will be incurred during this process. The four partners share profits and losses as shown. Capital balances at the start of the liquidation follow: Kevin, capital (40%) $59,000 Michael, capital (30%) 39,000 Brendan, capital (10%) 34,000 Jonathan, capital ( 20%) 34,000 The partners realize that Brendan will be the first partner to start receiving cash. How much cash will Brendan receive before any of the other partners collect any cash? a. $17,000.b. $14,750.c. $12,250.d. $19,500
The following condensed balance sheet is for the partnership of Hardwick, Saunders, and Ferris, who share profits and losses in the ratio of 4:3:3, respectively: The partners decide to liquidate the partnership. Forty percent of the other assets are sold for $200,000. Prepare a proposed schedule of liquidation at this point in time.
A partnership is currently holding $400,000 in assets and $234,000 in liabilities. The partnership is to be liquidated, and $20,000 is the best estimation of the expenses that will be incurred during this process. The four partners share profits and losses as shown. Capital balances at the start of the liquidation follow: Kevin, capital (40%) . . . . . . . $59,000Michael, capital (30%) . . . . . . 39,000Brendan, capital (10%) . . . . . . 34,000Jonathan, capital (20%) . . . . . 34,000 The partners realize that Brendan will be the first partner to start receiving cash. How much cash will Brendan receive before any of the other partners collect any cash? Choose the correct.a. $12,250b. $14,750c. $17,000d. $19,500
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 Cash P 80,000 Liabilities P 80,000 Other Assets 720,000 D, Capital 320,000 E, Capital 240,000 F, Capital 160,000 After realization, E received P 120,000 as settlement of his interest. How much was the loss on the sale of assets? How much did F receive in final settlement of his interest? What amount of total cash was distributed to the Partners?
The ABC Partnership is to be liquidated. The ledger shows the following: Cash $ 70,000 Noncash Assets 220,000 Liabilities 90,000 A, Capital 85,000 B, Capital 90,000 C, Capital 25,000 A,B, and C's income ratios are 5:3:2, respectively. The non-cash assets are sold for $170,000. Instructions Prepare a schedule of liquidation using the following chart: Cash NC assets Liabilities A, Cap B, Cap C, Cap Beg Balance Sale of assets Balance Pay liabilities Balance Distribute cash End Balance Prepare the 4…
A partnership has the following balance sheet prior to liquidation (partners’ profit and loss ratios are in parentheses): During liquidation, other assets are sold for $80,000, liabilities are paid in full, and $15,000 in liquidation expenses are paid. What amount of cash does each partner receive as a result of this liquidation? Playa, $6,000; Bahia, $4,500; Arco, $4,500. Playa, $10,000; Bahia, $18,500; Arco, $19,500. Playa, $16,000; Bahia, $23,000; Arco, $24,000. Playa, $19,200; Bahia, $14,400; Arco, $14,400.
ABC partnership has the following account balancesbefore liquidation: Cash, P15,000; Non-cash assets, 225,000; Accounts Payable, P50,000; A Capital, P40,000; B Capital, P100,000; and C Capital,P50,000. The partners have profit and loss ratio: A = 30%; B = 50%; and C = 20%Compute for the amount to be received by each partner after liquidation if the non-cash assets were sold for P75,000. If all partners are solvent, what is the final cash distribution for C?
A partnership is currently holding $400,000 in assets and $234,000 in liabilities. The partnership is to be liquidated, and $20,000 is the best estimation of the expenses that will be incurred during this process. The four partners share profits and losses as shown. Capital balances at the start of the liquidation follow: The partners realize that Brendan will be the first partner to start receiving cash. How much cash will Brendan receive before any of the other partners collect any cash? $12,250 $12,250 $17,000 $19,500
Garachico, Dugan, Pascua and Cerda are partners, sharing profits in the ratio of 3/21, 4/21, 6/21 and 8/21, respectively. The balances of their capital accounts on Dec. 31, 2019 are as follows: Garachico P 1,000 Dugan 25,000 Pascua 25,000 Cerda 9,000 P60,000 The partners decided to liquidate, and they accordingly converted the non-cash assets into P23,200 of cash. After paying the liabilities amounting to P3,000, they have P22,000 to divide. Assume that a debit balance of any partner's capital is uncollectible. The share of Garachico in the loss on realization was:
Daniel, Micah, and Jeremiah are liquidating their partnership. At the date the liquidation begins Daniel, Micah, and Jeremiah have capital account balances of P147.000. P260,000, and P285,000, respectively and the partners share profits and losses 35%, 25%, and 40%, respectively. In addition, the partnership has a P28,000 Notes Payable to Daniel and a P15,000 Notes Receivable from Jeremiah. When the liquidation begins, what is the loss absorption power with respect to Jeremiah? P340,000 P675,000 P500,000 P1,040,000

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