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.
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- The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after Tatum receives a 10,000 salary and Brook receives a 15,000 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $40,000 B. $25,000 C. ($5,000) In addition, show the resulting entries to each partners capital account. Tatums capital account balance is $50,000 and Brooks is $60,000.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: 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
- es 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 $ 59,000 $ 59,000 $ (7,000) 52,000 $ Horvath 39,000 $ 39,000 $ 39,000 $ 39,000 $ Markov 34,000 $ (17,000) 17,000 $ (2,250) 14,750 $ (1,750) 13,000 $ Petronis 34,000…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. $19,500A 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
- 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 $19,500The 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.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?
- After the tangible assets have been adjusted to current market prices, the capital accounts of Grayson Jackson and Harry Barge have balances of $64,900 and $86,500, respectively. Lewan Gorman is to be admitted to the partnership, contributing $43,300 cash to the partnership, for which he is to receive an ownership equity of $50,500. All partners share equally in income a. Journalize the entry to record the admission of Gorman, who is to receive a bonus of $7,200. If an amount box does not require an entry, leave it blank. b. What are the capital balances of each partner after the admission of the new partner? Partner Grayson Jackson Harry Barge Lewan Gorman Balance c. Why are tangible assets adjusted to current market prices prior to admitting a new partner? Tangible assets should be adjusted to current market prices so that the new partner admitted. For example, if the market price of land doubled prior to admitting new partners, their capital accounts prior to the new partners'…A partnership is currently holding $200,000 in assets and $120,000 in liabilities. The partnership is to be liquidated, and $20,000 is the best estimation of the expenses that will be incurred during the process. The capital balances of the two partners at the start of the liquidation and the profit and loss ratios are shown below. Kevin, Capital (40% of gains and losses)……………………………….…....$20,000 Michael, Capital (60% of gains and losses)………………………………….$60,000 The partners realize that Michael will be the first partner to start receiving cash. How much cash will Michael receive before Kevin collects any cash?Stewardship Enterprises, a partnership, is about to begin liquidation. The process for selling the company’s assets will occur over time, but the partners would like to receive cash distributions as asset sales occur. The company’s books show total assets of $1 million, which includes a Note Receivable of $32,000 from partner Jones. Income allocations are 4:1:5 and existing partnership capital balances are: Jones $200,000; Smith $100,000; and Holt $90,000. Required: Prepare a cash distribution plan.