!Required information[The following information applies to the questions displayed below.]The partnership of Garcia, Iglesias, and Kassabian was formed several years ago as a local tax preparation firm. Twopartners have reached retirement age, and the partners have decided to terminate operations and liquidate the business.Liquidation expenses of $44,000 are expected. The partnership balance sheet at the start of liquidation is as follows:CashAccounts receivableOffice equipment (net)Building (net)LandTotal assetsLiabilitiesGarcia, loan$ 180,00040,000100,00040,000120,000$ 40,00070,00060,000Garcia, capital (25%)160,000150,000$ 480,000Total liabilities and capital$ 480,000Iglesias, capital (25%)Kassabian, capital (50%)Required:Prepare a predistribution plan for this partnership.Garcia, Loanand CapitalIglesias,CapitalKassabian,CapitalBeginning balances$140,000 $ 40,000 $ 120,000Assumed loss of Schedule 140,00040,000(80,000)Step one balances$100,000 $0$ 40,000Assumed loss of Schedule 20(40,000)Step two balances$60,000 $0$0

Partnership -A partnership is a type of corporate structure in which two or more individuals…

The partnership of Garcia, Iglesias, and Kassabian was formed several years ago as a local tax preparation firm. Two partners have reached retirement age, and the partners have decided to terminate operations and liquidate the business. Liquidation expenses of $44,000 are expected. The partnership balance sheet at the start of liquidation is as follows: Cash Accounts receivable Office equipment (net) Building (net) Land Total assets $ 40,000 70,000 Liabilities Garcia, loan 60,000 Garcia, capital (25%) 160,000 Iglesias, capital (25%) 150,000 Kassabian, capital (50%) $ 480,000 Total liabilities and capital $ 180,000 40,000 100,000 40,000 120,000 $480,000

The partnership of Garcia, Iglesias, and Kassabian was formed several years ago as a local tax preparation firm. Two partners have reached retirement age, and the partners have decided to terminate operations and liquidate the business. Liquidation expenses of $44,000 are expected. The partnership balance sheet at the start of liquidation is as follows: Cash Accounts receivable Office equipment (net) Building (net) Land Total assets $ 40,000 70,000 Liabilities Garcia, loan 60,000 Garcia, capital (25%) 160,000 Iglesias, capital (25%) 150,000 Kassabian, capital (50%) $ 480,000 Total liabilities and capital $ 180,000 40,000 100,000 40,000 120,000 $480,000

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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! Required information [The following information applies to the questions displayed below.] The partnership of Butler, Osman, and Ward was formed several years ago as a local tax preparation firm. Two partners have reached retirement age, and the partners have decided to terminate operations and liquidate the business. Liquidation expenses of $47,000 are expected. The partnership balance sheet at the start of liquidation is as follows: Cash Accounts receivable Office equipment (net) Building (net) Land Total assets $ 43,000 73,000 63,000 175,000 165,000 $ 519,000 Liabilities Butler, loan Butler, capital (25%) Osman, capital (25%) Ward, capital (50%) Total liabilities and capital The following transactions transpire in chronological order during the liquidation of the partnership: 1. Collected 90 percent of the accounts receivable and wrote the remainder off as uncollectible. 2. Sold the office equipment for $26,500, the building for $130,000, and the land for $172,000. 3. Distributed…
The partnership of Butler, Osman, and Ward was formed several years ago as a local tax preparation firm. Two partners have reached retirement age, and the partners have decided to terminate operations and liquidate the business. Liquidation expenses of $51,000 are expected. The partnership balance sheet at the start of liquidation is as follows: Cash Accounts receivable Office equipment (net) Building (net) Land Total assets $ 47,000 77,000 67,000 195,000 185,000 $ 571,000 Liabilities Butler, loan Butler, capital (25%) Osman, capital (25%) Ward, capital (50%) Total liabilities and capital The following transactions transpire in chronological order during the liquidation of the partnership: 1. Collected 90 percent of the accounts receivable and wrote the remainder off as uncollectible. 2. Sold the office equipment for $28,500, the building for $146,000, and the land for $188,000. 3. Distributed safe payments of cash. 4. Paid all liabilities in full. 5. Paid actual liquidation expenses…
The partnership of Butler, Osman, and Ward was formed several years ago as a local tax preparation firm. Two partners have reached retirement age, and the partners have decided to terminate operations and liquidate the business. Liquidation expenses of $47,000 are expected. The partnership balance sheet at the start of liquidation is as follows: Cash Accounts receivable Office equipment (net) Building (net) Land Total assets $ 43,000 73,000 63,000 175,000 165,000 $ 519,000 Liabilities $ 183,000 Butler, loan 43,000 Butler, capital (25%) 115,000 Osman, capital (25%) 43,000 Ward, capital (50%) 135,000 Total liabilities and capital $ 519,000 The following transactions transpire in chronological order during the liquidation of the partnership: 1. Collected 90 percent of the accounts receivable and wrote the remainder off as uncollectible. 2. Sold the office equipment for $26,500, the building for $130,000, and the land for $172,000. 3. Distributed safe payments of cash. 4. Paid all…
The partnership of Butler, Osman, and Ward was formed several years ago as a local tax preparation firm. Two partners have reached retirement age, and the partners have decided to terminate operations and liquidate the business. Liquidation expenses of $50,000 are expected. The partnership balance sheet at the start of liquidation is as follows: Cash $ 46,000 Liabilities $ 186,000 Accounts receivable 76,000 Butler, loan 46,000 Office equipment (net) 66,000 Butler, capital (25%) 130,000 Building (net) 190,000 Osman, capital (25%) 46,000 Land 180,000 Ward, capital (50%) 150,000 Total assets $ 558,000 Total liabilities and capital $ 558,000 The following transactions transpire in chronological order during the liquidation of the partnership: Collected 90 percent of the accounts receivable and wrote the remainder off as uncollectible. Sold the office equipment for $28,000, the building for…
The partnership of Butler, Osman, and Ward was formed several years ago as a local tax preparation firm. Two partners have reached retirement age, and the partners have decided to terminate operations and liquidate the business. Liquidation expenses of $50,000 are expected. The partnership balance sheet at the start of liquidation is as follows: Cash $ 46,000 Liabilities $ 186,000 Accounts receivable 76,000 Butler, loan 46,000 Office equipment (net) 66,000 Butler, capital (25%) 130,000 Building (net) 190,000 Osman, capital (25%) 46,000 Land 180,000 Ward, capital (50%) 150,000 Total assets $ 558,000 Total liabilities and capital $ 558,000 Prepare a predistribution plan for this partnership.
Adjani, Malcolm, and Shanice have been in partnership for over forty years. They are now ready to retire and have decided to dissolve the partnership on March 31, 2021. The balance sheet at that date stood as follows: iii. iv. ASSETS Non-current assets Buildings Furniture Statement of Financial Position as at 31 March Current assets Inventory Trade receivables Allowance for doubtful accounts A. Bank Total current assets Total assets EQUITY AND LIABILITIES Capital -Adjani Capital - Malcolm Capital - Shanice C. Current a/c - Adjani Current a/c - Malcolm Current a/c - Shanice Additional information: Long-Term Liabilities Loan Current Liabilities Creditors Required: Prepare the following: a. Buildings realized $180,000 b. Debtors $233, 600 c. Inventory $83,000 Realization account B. Partners' capital accounts $ Bank account 2020 i. Adjani took over the furniture at an agreed value of $10,000 ii. Of the remaining assets: 250,000 15,000 $ 50,000 200,000.00 3,000 12,000.00 212,000.00 83,000…
Hi, I don't know how to prepare a predistribution plan for this partnership. Please help me. Take a look at the photo with my problem. The partnership of Butler, Osman, and Ward was formed several years ago as a local tax preparation firm. Two partners have reached retirement age, and the partners have decided to terminate operations and liquidate the business. Liquidation expenses of $43,000 are expected. The partnership balance sheet at the start of liquidation is as follows: Cash $39,000 Liabilities $179,000 Accounts receivable 69,000 Butler, loan 39,000 Office equipment (net) 59,000 Butler, capital (25%) 95,000 Building (net) 155,000 Osman, capital (25%) 39,000 Land 145,000 Ward, capital (50%) 115,000 Total assets $467,000 Total liabilities and capital $467,000 Prepare a predistribution plan for this partnership Butler, Loan and Capital Osman, Capital Ward, Capital Beginning…
Required information Problem 15-33 (Algo) (LO 15-2, 15-7) [The following information applies to the questions displayed below.] The partnership of Butler, Osman, and Ward was formed several years ago as a local tax preparation firm. Two partners have reached retirement age, and the partners have decided to terminate operations and liquidate the business. Liquidation expenses of $48,000 are expected. The partnership balance sheet at the start of liquidation is as follows: Cash Accounts receivable. $ 44,000 74,000 Liabilities Butler, loan $ 184,000 44,000 Office equipment (net) 64,000 Building (net) Land Total assets 180,000 Butler, capital (25%) Osman, capital (25%) 120,000 44,000 170,000 $532,000 Ward, capital (50%) 140,000 Total liabilities and capital $532,000 Problem 15-33 Part A Prepare a predistribution plan for this partnership. Answer is not complete. Butler, Loan and Capital Osman, Ward, Capital Capital Beginning balances S 164,000 $44,000 140,000 Assumed loss of Schedule 1…
Stewardship Enterprises, a partnership, is about to begin liquidation. The process for selling the company’s assets will occur over time, but the partners would like to receive cash distributions as asset sales occur. The company’s books show total assets of $1 million, which includes a Note Receivable of $32,000 from partner Jones. Income allocations are 4:1:5 and existing partnership capital balances are: Jones $200,000; Smith $100,000; and Holt $90,000. Required: Prepare a cash distribution plan.
The loan and capital account balances of Hannah, Jean, Jenifer and Kristine Partnership were as follows on October 26, 2020, the date that the partnership began liquidation: Debit Credit Loan, Hannah P20,000 Loan, Jenifer P35,000 Hannah, Capital – 20% 30,000 Jean, Capital – 30% 15,000 Jenifer, Capital – 10% 25,000 Kristine, Capital – 40% 40,000 Required: 1. Prepare a cash priority program. 2. Assume that P20,000 cash is available for the first distribution, determine the cash to be received by the partners. 3. In continuation with the preceding number, another P15,000 cash is available for the next distribution, determine the cash to be received by the partners. Required: Prepare a statement of liquidation with safe payments schedule.
The Pen, Evan, and Torves Partnership has asked you to assist in winding-up its business affairs. You compile the following information: 1. The partnership's trial balance on June 30, 20X1, Is Cash Accounts Receivable (net) Inventory Plant and Equipment (net) Accounts Payable Pen, Capital Evan, Capital Torves, Capital Total Profit and loss percentages Preliquidation capital balances Loss absorption potential (capital balances / loss percent) Decrease highest LAP to next highest: Debit $ 6,800 30,000 22,000 99,700 Decrease LAPS to next highest: $ 158,500 2. The partners share profits and losses as follows: Pen, 50 percent; Evan, 30 percent; and Torves, 20 percent. 3. The partners are considering an offer of $108,000 for the firm's accounts receivable, Inventory, and plant and equipment as of June 30. The $108,000 will be paid to creditors and the partners in Installments, the number and amounts of which are to be negotiated. Required: Prepare a cash distribution plan as of June 30,…
The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: Liquidation expenses are estimated to be $15,000. Prepare a predistribution schedule to guide the distribution of cash. Assume that assets costing $74,000 are sold for $60,000. How is the available cash to be divided?