The following balance sheet summary, together with residual profit-sharing ratios, was developed on April 1, 2011, when the Dazzle, Enigma, and Faceless partnership began its liquidation: Cash P140,000 Liabilities P 60,000 Accounts receivable 60,000 Loan from Enigma 20,000 Inventories 85,000 Dazzle capital (20%) 75,000 Plant assets—net 200,000 Enigma capital (40%) 200,000 Loan to Dazzle 25,000 Faceless capital (40%) 155,000 P510,000 P510,000 If available cash except for a $5,000 contingency fund is distributed immediately, Dazzle, Enigma, and Faceless, respectively, should receive: a. P10,000, P60,000, and P15,000 b. P0, P70,000, and P5,000
The following balance sheet summary, together with residual profit-sharing ratios, was developed on April 1, 2011, when the Dazzle, Enigma, and Faceless partnership began its liquidation: Cash P140,000 Liabilities P 60,000 Accounts receivable 60,000 Loan from Enigma 20,000 Inventories 85,000 Dazzle capital (20%) 75,000 Plant assets—net 200,000 Enigma capital (40%) 200,000 Loan to Dazzle 25,000 Faceless capital (40%) 155,000 P510,000 P510,000 If available cash except for a $5,000 contingency fund is distributed immediately, Dazzle, Enigma, and Faceless, respectively, should receive: a. P10,000, P60,000, and P15,000 b. P0, P70,000, and P5,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The following balance sheet summary, together with residual profit-sharing ratios, was developed on April 1, 2011, when the Dazzle, Enigma, and Faceless
|
Cash |
P140,000 |
Liabilities |
P 60,000 |
|
Accounts receivable |
60,000 |
Loan from Enigma |
20,000 |
|
Inventories |
85,000 |
Dazzle capital (20%) |
75,000 |
|
Plant assets—net |
200,000 |
Enigma capital (40%) |
200,000 |
|
Loan to Dazzle |
25,000 |
Faceless capital (40%) |
155,000 |
|
|
P510,000 |
|
P510,000 |
If available cash except for a $5,000 contingency fund is distributed immediately, Dazzle, Enigma, and Faceless, respectively, should receive:
a. P10,000, P60,000, and P15,000
b. P0, P70,000, and P5,000
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