Ribs, Safar, and Wong is being liquidated. It curr mount to $55,400. The capital balances are Ramos (40% of profits and losses) Rios (208) Safar (20%) Wong (208) quired: $ 26,400 24,000 (40,000) (deficit). (44,000) (deficit) If both Safar and Wong are personally insolvent, how much money must -1. If only Wong is personally insolvent, how much money must Safar con -2. If only Wong is personally insolvent, how will Safar's contribution (func If only Safar is personally insolvent, how much money should Ramos rec te: For all requirements, do not round intermediate calculations. Roun Answer is complete but not entirely correct. Rio's contribution $ 66,000
Ribs, Safar, and Wong is being liquidated. It curr mount to $55,400. The capital balances are Ramos (40% of profits and losses) Rios (208) Safar (20%) Wong (208) quired: $ 26,400 24,000 (40,000) (deficit). (44,000) (deficit) If both Safar and Wong are personally insolvent, how much money must -1. If only Wong is personally insolvent, how much money must Safar con -2. If only Wong is personally insolvent, how will Safar's contribution (func If only Safar is personally insolvent, how much money should Ramos rec te: For all requirements, do not round intermediate calculations. Roun Answer is complete but not entirely correct. Rio's contribution $ 66,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![The partnership of Ramos, Rios, Safar, and Wong is being liquidated. It currently holds cash of $21,800 but no other assets. Liabilities
amount to $55,400. The capital balances are
Ramos (40% of profits and losses)
Rios (208)
Safar (20%)
Wong (20%)
Required:
$ 26,400
24,000
(40,000) (deficit)
(44,000) (deficit)
a. If both Safar and Wong are personally insolvent, how much money must Rios contribute to the partnership?
b-1. If only Wong is personally insolvent, how much money must Safar contribute to the partnership?
b-2. If only Wong is personally insolvent, how will Safar's contribution (funds) be distributed?
c. If only Safar is personally insolvent, how much money should Ramos receive from the liquidation?
Note: For all requirements, do not round intermediate calculations. Round your answers to the nearest whole dollar amount.
* Answer is complete but not entirely correct.
a.
Rio's contribution
$
66,000
b-1
Safar contribution
$ (40,000)
b-
Creditors
$
21,800x
2.
b-
Ramos
$
66,000
2.
b-
Rios
$
0×
2.
C.
Ramos should receive
$
0×](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5b161e8b-9c29-47c0-89eb-99c7886482dc%2F0ee3a50e-d46a-4ab1-8dc1-aadb667072aa%2Fng55jff_processed.png&w=3840&q=75)
Transcribed Image Text:The partnership of Ramos, Rios, Safar, and Wong is being liquidated. It currently holds cash of $21,800 but no other assets. Liabilities
amount to $55,400. The capital balances are
Ramos (40% of profits and losses)
Rios (208)
Safar (20%)
Wong (20%)
Required:
$ 26,400
24,000
(40,000) (deficit)
(44,000) (deficit)
a. If both Safar and Wong are personally insolvent, how much money must Rios contribute to the partnership?
b-1. If only Wong is personally insolvent, how much money must Safar contribute to the partnership?
b-2. If only Wong is personally insolvent, how will Safar's contribution (funds) be distributed?
c. If only Safar is personally insolvent, how much money should Ramos receive from the liquidation?
Note: For all requirements, do not round intermediate calculations. Round your answers to the nearest whole dollar amount.
* Answer is complete but not entirely correct.
a.
Rio's contribution
$
66,000
b-1
Safar contribution
$ (40,000)
b-
Creditors
$
21,800x
2.
b-
Ramos
$
66,000
2.
b-
Rios
$
0×
2.
C.
Ramos should receive
$
0×
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 6 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
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.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education