All. Basel and Ziad are sharing income and loss in a 4:3:2 ratio respectively and decided to liquidate their partnership. Prior to the final distribution of cash to the partners. All has a capital balance of $(20,000). Basel has a capital balance of $48,000, and Ziad has a capital balance of $72,000. Also, cash balance is $100,000. All is NOT able to pay the amount he owes the partnership. Which of the following two journal entries are right to record this liquidation case? OA Basel Capital 10,000 Ziad Capital 15,000 20,000 38,000 Basel capital Ziad capital Cash 62,000 100,000 OB Basel Capital 8,000 Ziad Capital 12,000 All Capital 20,000 Basel capital 36,000 64,000 Ziad capital Cash 100,000 OC Basel Capital 12,000 Ziad Capital 8,000 20,000 Basel capital 36,000 Ziad capital Cash 64,000 100,000 All Capital All Capital

All. Basel and Ziad are sharing income and loss in a 4:3:2 ratio respectively and decided to liquidate their partnership. Prior to the final distribution of cash to the partners. All has a capital balance of $(20,000). Basel has a capital balance of $48,000, and Ziad has a capital balance of $72,000. Also, cash balance is $100,000. All is NOT able to pay the amount he owes the partnership. Which of the following two journal entries are right to record this liquidation case? OA Basel Capital 10,000 Ziad Capital 15,000 20,000 38,000 Basel capital Ziad capital Cash 62,000 100,000 OB Basel Capital 8,000 Ziad Capital 12,000 All Capital 20,000 Basel capital 36,000 64,000 Ziad capital Cash 100,000 OC Basel Capital 12,000 Ziad Capital 8,000 20,000 Basel capital 36,000 Ziad capital Cash 64,000 100,000 All Capital All Capital

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

What is the correct answer?
Orange and Lemon share profits and losses equally. They decided to liquidate their partnership when their net assets amounted to P 260,000. Capital balances were P 170,000 andP 90,000, respectively. If the non-cash assets were sold for an amount equal to book value, what amount of cash should Orange and Lemon respectively received? E.
May, Jun, and Julie are partners with profit and loss ratio of 2:2:1 and capital balances of P1,200,000, P1,000,000 and P600,000, respectively. Julie decided to withdraw from the partnership to focus on her coffee business. She was paid P1,000,000 by the partnership for her capital interest. The difference in amount is due to the recognition of bonus. How much is the capital balance of May after the withdrawal of Julie?
The Field, Brown & Snow are partners and share income and losses equality. The partner decide to liquidate the partnership when their capital balances are as follows: Field, $131,250; Brown, $165,000; and Snow, $153,750. On May 31, the liquidation resulted in a loss of $405,000. 3. Assume that the partner with a deficit does not reimburse the partnership. Prepare journal entries (a) to transfer the deficit to the other partners and (b) to record the final disbursement of cash to the partners.
Jay
Fluffy, Anjelah, and Lopez are partners and share income and losses as follows: Fluffy, 20%; Anjelah, 30%; and Lopez, 50%. The partnership’s capital balances follow: Fluffy, $330; Anjelah, $270; and Lopez, $400. Lopez decides to withdraw from the partnership. Prepare journal entries to record Lopez’s May 1 withdrawal from the partnership under each separate assumption: a. Lopez sells his interest to Mencia for $500 after Mencia is accepted as a partner. b. Lopez gives his interest to a son-in-law, Madrigal, and Madrigal is accepted as a partner. c. Lopez is paid $400 in partnership cash for his equity. d. Lopez is paid $600 in partnership cash for his equity. e. Lopez is paid $70 in partnership cash plus equipment recorded on the partnership books at $40 less its accumulated depreciation of $10.
Fitzee, Chesher and Klotia have a partnership. They share income on the basis of the following ratio: 2:3:5. Each partner has the following capital balances respectively $220,000, $250,000, and $145,000. They decided to liquidate their business on July 3 because they wanted to pursue other interests. They had a big liquidation sale and they sold all non-cash assets for $445,000. They have the following accounts: Cash $200,000 Supplies $50,000 Equipment $150,000 Truck $65,000 Building $300,000 AP $200,000 Prepare all of the journal entries to close this business General Journal Page Date Particulars PR Debits Credits
A Base and Zad are sharing income and loss in a 4:3:2 ratio respectively and decided to liquidate their partnership. Prior to the final distribution of cash to the partners. All has a capital balance of $(10,000), Basel has a capital balance of $24,000, and Ziad has a capital balance of $36,000. Also, cash balance is $50,000. All is NOT able to pay the amount he owes the partnership ?Which of the following two journal entries are right to record this liquidation case 6,000 4,000 Basel Capital A O Ziad Capital 10,000 All Capital 18,000 Basel capital 32,000 Ziad capital Cash 50,000 4,000 Basel Capital B O Ziad Capital 6,000 10,000 All Capital 18,000 32,000 Basel capital Ziad capital Cash 50,000 Basel Capital .CO Ziad Capital All Capital Basel capital Ziad capital Cash Basel Capital .D O Ziad Capital Ali Capital Basel capital Ziad capital Cash 50,000 10,000 50,000 10,000 50,000 السؤال 6 6,000 4,000 32,000 18,000 5,000 5,000 19,000 31,000
Partner Ross is insolvent, having no personal assets and owes $30,000 to his personal creditors. Ross is a partner with Williams and Zellin and the partnership balance sheet is as follows: Partnership Balance Sheet Cash $240,000 Liabilities $150,000 Ross Capital 20,000 Williams Capital 30,000 Zellin Capital 40,000 How much can Ross’s personal creditors claim against partnership cash
Foss, Albertson, and Espinosa are partners who share profits and losses 50%, 30%, and 20%, respectively. Their capital balances are $111,000, $62,000, and $32,000, respectively. Assume instead that Foss leaves the partnership. Foss is paid $129,000 with a bonus to the retiring partner. Prepare the journal entry to record Foss’s withdrawal. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Dinesh bhai
Bethel Corporation distributed $125,000 to its shareholders on December 31, 1997, the end of its taxable year. Bethel's capital structure was as follows: Capital stock--5,000 shares issued and outstanding $500,000 Current earnings and profits 1/1/97 - 12/31/97 $ 15,000 Accumulated earnings and profits 3/1/93 - 12/31/96 $ 75,000 Mr. Rutland held 200 shares of Bethel Corporation's stock. His basis in the stock was $100 per share. How much of the Bethel Corporation distribution is a dividend to Mr. Rutland? Which answer is correct to this question? A)$1400; B)3,000; C)3,600; D)$5,000