Case A Assets Liabilities Partner A Partner B Partner C $180,000 $150,000 Partnership.... Partnership capital balances... Personal assets... $34,000 60,000 $(15,000) 60,000 80,000 $11,000 32,000 Personal liabilities 40,000 24,000 Case B Partnership...... Partnership capital balances... Personal assets..... $180,000 $150,000 $34,000 $(15,000) 45,000 $11,000 60,000 72,000 32,000 Personal liabilities 60,000 36,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

The following two independent cases deal with a partnership and/or partners that are insolvent.(attached)

Assuming that the partners share profits and losses equally, prepare a response to each of the following independent questions:

1. Given Case A, if all of the assets were sold for $165,000, how much of personal assets could Partner B contribute toward their capital balance?
2. Given Case A, if all of the assets were sold for $126,000, how much could Partner C contribute toward the remaining partnership liabilities, assuming the unsatisfied partnership creditors first seek recovery against Partner A?
3. Given Case B, if all of the assets were sold for $135,000 and all partners with deficit capital balances contributed personal assets toward those deficits, how much, if anything, would Partner A have to contribute toward unsatisfied partnership creditors?
4. Given the same facts as item (3) above, what amount could Partner A’s unsatisfied personal creditors receive from A’s interest in the partnership?

Case A
Assets
Liabilities
Partner A
Partner B
Partner C
$180,000 $150,000
Partnership....
Partnership capital balances...
Personal assets...
$34,000
60,000
$(15,000)
60,000
80,000
$11,000
32,000
Personal liabilities
40,000
24,000
Case B
Partnership......
Partnership capital balances...
Personal assets.....
$180,000
$150,000
$34,000
$(15,000)
45,000
$11,000
60,000
72,000
32,000
Personal liabilities
60,000
36,000
Transcribed Image Text:Case A Assets Liabilities Partner A Partner B Partner C $180,000 $150,000 Partnership.... Partnership capital balances... Personal assets... $34,000 60,000 $(15,000) 60,000 80,000 $11,000 32,000 Personal liabilities 40,000 24,000 Case B Partnership...... Partnership capital balances... Personal assets..... $180,000 $150,000 $34,000 $(15,000) 45,000 $11,000 60,000 72,000 32,000 Personal liabilities 60,000 36,000
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 18 images

Blurred answer
Knowledge Booster
Partners and Partnerships
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education