Chen, Korhonen, Lebuca, and Swid are partners who share profits and losses on a 4:3:2:1 basis, respectively. They are beginning toliquidate the business. At the start of this process, capital balances areChen, capitalKorhonen, capitalLebuca, capitalSwid, capitalRequired:$ 76,00031,80059,00024,800Prepare 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 lossBalancesChenKorhonenLebucaSwid

Part 2: Explanation:Step 1: Determine the order of distribution based on the profit-sharing ratio.-…

Answered: Chen, Korhonen, Lebuca, and Swid are…

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 and B are partners' sharing profit and loss equally. Their capitals as on 1.1.2012 were $90,000 and $ 60,000 respectively. They decided to allow interest on capitals @ 10% p.a. The profits for the year 2012 were $ 10,000. Prepare related accounts to allocate interest on capitals, in each of the following case (a) Interest on capital is an appropriation of profits.
1. Jag, Lee and Bench are partners having the following capital balances of P 11,200, P13,000 and P5,800respectively. Profits and losses are shared 4:2:1. How much is the total loss on realization?Required to answer. Single choice. a. P2,100 b. P27,900 c. P30,000 d. P1,200
Chen, Korhonen, Lebuca, and Swid are partners who share profits and losses on a 4:3:2:1 basis, respectively. They are beginning to liquidate the business. At the start of this process, capital balances are Chen, capital Korhonen, capital Lebuca, capital Swid, capital $ 67,000 29,100 50,000 22,100 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 $ Chen Korhonen 67,000 $ 29,100 $ Lebuca 50,000 $ Swid 22,100
You were presented the below transactions for the partners' capital accounts: Jasper, Capital Elena, Capital Daisy, Capital Dr. Cr. Dr Cr. Dr. Cr. 1-Mar 46 5,000 429,600 899,300 1-Apr 5,000 8,000 1-Jun 10,000 20,000 1-Aug 10,000 6,000 1-Sep 3,000 1-Oct 5,000 1,000 10,000 1-Dec 4,000 5,000 50,000 The partnership agreement for P/L division includes the following: Jasper and Elena receive an annual salary of P20,000 and P10,000, respectively. • Elena receives a bonus of 3% of net income before taxes but after bonus. Daisy receives a bonus of 2% of net income before taxes but after bonus. All partners are to receive a 10% interest on their average capital balances. • Remainder is divided equally. Rew The company incur 88,415 loss for the current year operation. Prepare an income statement of the partnership with schedule showing distribution of profits.
Jag, Lee and Bench are partners having the following capital balances of P11,200, P13,000 and P5,800 respectively. Profits and losses are shared 4:2:1. How much is the loss absorption capacity of Lee?Required to answer. Single choice.
1. Jag, Lee and Bench are partners having the following capital balances of P 11,200, P13,000 and P5,800 respectively. Profits and losses are shared 4:2:1. if Jag receives a total of P3,200 in cash, how much will Bench received at this point? a. P800 b. P3,000 c. P3,800 d. P5,600
Lourdes and Annie are combining separate businesses to form a partnership. Cash and noncash assets are to be contributed for a total capital of P300,000. The noncash assets to be distributed and the liabilities to be assumed are: Lourdes Annie Book Value Fair Value Book Value Fair Value Accounts Receivable P20,000 P20,000 Inventories 30,000 40,000 P20,000 P25,000 Equipment 60,000 45,000 40,000 50,000 Accounts Payable 15,000 15,000 10,000 10,000 The partner's capital accounts should be equal after all contributions of assets and the assumption of liabilities. Required: A. Prepare journal entries to record the investments of Lourdes and Annie in the books of the partnership. B. Prepare the statement of financial position of the partnership on July 18, 2018, the date of the formation.
The following is the trail Balance of X and Y Co. as on March 31, 2021. The partners sharing profits and losses in the ratio 2:1. Prepare the Income Statement, Profit & Loss Appropriation A/c, Partners' Capital A/c and the Balance Sheet. Particulars Dr. Particulars Cr. 375000 x Capital A/c 112500 Y Capital A/c 50000 Sundry creditors 100000 Sales (net) 50000 Discount Land and Buildings Plant and Machinery 125000 75000 Wages 62500 Opening Stock of Finished Goods 812500 Opening Stock of Raw material Opening Stock of Work in Progress Sundry debtors 6250 45000 Provision for bad debts 3750 125000 Commission 3750 Y's Loan A/c 2250 25000 Carriage inwards 75000 Carriage outwards Factory Expenses 18750 Royalties 3750 Purchase of Raw material (net) 187500 16250 7250 10000 Factory rent & taxes Discount Office rent Insurance 5000 3750 18750 30000 20500 1185000 The following additional information is to be taken into consideration: Bad debts Office Expenses Salaries of works manager Cash at bank…
The capital balances of the partners are presented to you before the retirement of X: X, P50,000; Y, P45,000; Z, P35,000. P/L ratio, equally. After the retirement of X, the capital balance of Z was P34,000. How much is the total capital after the retirement of X? A. P48,000 B. P80,000 C. P78,000 D. P52,000 The capital balances of the partners are presented to you before the retirement of Z: X, P60,000; Y, P55,000; Z, P45,000. P/L ratio, equally. After the retirement of Z, the capital balance of X was P57,500. How much is the capital of Y after the retirement of Z? A. P55,000 B. P57,500 C. P52,500 D. P115,000
Can you help me answer this problem with a detailed solution so I can be able to understand it and learn further how to solve similar problems as this one? I'd prefer it if you'd present it with an excel and give some explanations to accompany it. Thank you so much in advance. Your help is greatly appreciated. PROBLEM: Alpha, Beta and Gamma are partners who have capital balances of $480,000, $500,000, and $180,000 respectively. P/L is distributed in the ratio of 4:2:1. Beta received $260,000 as a result of liquidating the partnership when 60% of the non cash assets of the partnership is realized. The partnership has total assets totalling to $500,000 including $50,000 cash before liquidation. The partnership also incurred $35,000 liquidation expenses and withheld $28,000 for the unpaid liabilities of the partnership. What is the loss on realization of noncash assets? A. 632,000 B. 875,000 C. 855,000 D. 612,000
The following is the trail Balance of X and Y Co. as on March 31, 2021. The partners sharing profits and losses in the ratio 2:1. Prepare the Income Statement, Profit & Loss Appropriation A/c, Partners' Capital A/c and the Balance Sheet. Particulars Dr. Particulars Cr. Land and Buildings 187500 x Capital A/c 56250 Y Capital A/c 25000 Sundry creditors 50000 Sales (net) 25000 Discount 22500 Provision for bad debts 62500 37500 Plant and Machinery Wages 31250 Opening Stock of Finished Goods 406250 3125 Opening Stock of Raw material Opening Stock of Work in Progress 1875 Sundry debtors 62500 Commission 12500 Carriage inwards 1875 Y's Loan A/c 37500 Carriage outwards 1125 Factory Expenses 9375 Royalties 1875 Purchase of Raw material (net) 93750 Factory rent & taxes 8125 Discount 3625 Office rent 5000 Insurance 2500 Bad debts 1875 Office Expenses 9375 Salaries of works manager 15000 Cash at bank 10250 592500 The following additional information is to be taken into consideration: 592500…
REQUIRED You are required to divide the profit in each of the following situations: a)Profit is shared in the ratio Andy 60% and Brad 40% b) Profits are shared based on the initial capital ratio. c) Profits are shared based on closing balances of capital accounts d) Profits are shared equally between the partner

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