In 2017, Ryan, Chen and Win established a firm partnership and they agreed to share theprofits in a 2:1:1 ratio. In mid-2018, with operations running profitably, they decided todissolve the firm's partnership. Based on the following facts, prepare a summary of thepartner's capital balance showing how much, if any, is available to settle in final settlement.ABValue of net assets paid in topartnership firm...$50,000$22,500$20,000Company partnership net income for 1976$30,000 divided into Ratio 2:1:1..$15,000$7,500$7,5001986 private take...$15,000$10,000$10,000Net assets at the time of dissolution are assessedFor $65,000 and distributed to$16,250$16,250Allies according to a ratio of 2:1:1..... $32,500

The partner's capital account summary shows the balances due to the partners.

Answered: In 2017, Ryan, Chen and Win established…

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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