Adams, Peters, and Blake share profits and losses for their APB Partnership in a ratio of 2:3:5. When they decide to liquidate, the balance sheet is as follows: Cash Adams, Loan Other Assets Total Assets Assets Liabilities Adams, Capital Peters, Capital Blake, Capital Total Liabilities and Equities Liquidation expenses are expected to be negligible. No interest accrues on loans with partners after termination of the business Required: Prepare a cash distribution plan for the APB Partnership. Please follow the practical guidelines when completing this worksheet. Profit and loss percentages Preliquidation capital balances Loan to Adams Total Loss absorption potential Decrease highest LAP to next highest Decrease LAPs to nest highest $ 36,000 13,800 215,000 $ 264,000 S Adams Liabilities and Capital Loss Absorption Potential 0 S Answer is not complete. APB PARTNERSHIP Cash Distribution Plan) 0 $ Blake 0 Adams 20% $ 53,400 (10,680) $ 42,720 S 42,720 $ 73,700 53,400 70,500 67,200 $ 264,800 Capital Accounts s s 300% 70.500 S 70.500 70.500 50% $67,200 O S 13 67,200 67,200

Adams, Peters, and Blake share profits and losses for their APB Partnership in a ratio of 2:3:5. When they decide to liquidate, the balance sheet is as follows: Cash Adams, Loan Other Assets Total Assets Assets Liabilities Adams, Capital Peters, Capital Blake, Capital Total Liabilities and Equities Liquidation expenses are expected to be negligible. No interest accrues on loans with partners after termination of the business Required: Prepare a cash distribution plan for the APB Partnership. Please follow the practical guidelines when completing this worksheet. Profit and loss percentages Preliquidation capital balances Loan to Adams Total Loss absorption potential Decrease highest LAP to next highest Decrease LAPs to nest highest $ 36,000 13,800 215,000 $ 264,000 S Adams Liabilities and Capital Loss Absorption Potential 0 S Answer is not complete. APB PARTNERSHIP Cash Distribution Plan) 0 $ Blake 0 Adams 20% $ 53,400 (10,680) $ 42,720 S 42,720 $ 73,700 53,400 70,500 67,200 $ 264,800 Capital Accounts s s 300% 70.500 S 70.500 70.500 50% $67,200 O S 13 67,200 67,200

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Elisa Diaz and Ma. Concepcion Manalo formed a partnership, investing P330,000 and P110,000, respectively. Determine the partners' participation in the 2018 profit of P420,000 under each of the following independent assumptions: a. No areement concerning division of profit. B. Divided in the ratio of original capital investment. C. Interest at th rate of 8% allowed on original investments and the remainder divided in the ratio of 2:3 D. Salary allowances of P50,000 and P70,000, respectively, and the balance to be divided equally. E.Allowance of interest at the rate of 8% on original investments, salary allowances of P50,000 and P70,000, respectively, and the remainder to be divided equally.
Adams, Peters, and Blake share profits and losses for their APB Partnership in a ratio of 2:3:5. When they decide to liquidate, the balance sheet is as follows: Cash Adams, Loan: Other Assets Assets Total Assets Liabilities Adams, Capital Peters, Capital Blake, Capital Total Liabilities and Equities Liquidation expenses are expected to be negligible. No interest accrues on loans with partners after termination of the business. Required: Prepare a cash distribution plan for the APB Partnership. Please follow the practical guidelines when completing this worksheet. Profit and loss percentages Preliquidation capital balances Loan to Adams Total Loss absorption potential Decrease highest LAP to next highest Adams $ 51,000 12,200 222,000 $285,200 Decrease LAPs to next highest Adams Peters ✪ 00 Adams Loss Absorption Potential Peters 335,500 (30.500) $ 305,000 O (142,400) O $ 162.600 Answer is not complete. APB PARTNERSHIP Cash Distribution Plan Liabilities and Capital 305,000 $ 305,000…
1. Jag, Lee and Bench are partners having the following capital balances of P11,200, P13,000 and P5,800 respectively. Profits and losses are shared 4:2:1. How much is the loss absorption capacity of Lee?Required to answer. Single choice. a. P13,000 b. P45,500 c. P26,000 d. cannot be determined 2. Lebron and Wade, partners who share profits and losses equally decided to liquidate their partnership by installment. The statement of financial position showed Cash – P 35,000; P Liabilities – P 20,000; Lebron, Capital – P71,000; and Wade, Capital – P 54,000. Liquidation expenses amounted to P 10,000. How much cash can be distributed safely toeach partner at this point? a. Lebron-P3,000; Wade- P0 b. Lebron-P5,000; Wade-P500 c. Lebron-P5,000; Wade-0 d. Lebron- P5,000; Wade- P1,0003. On December 31, 2020 and 2019, Bucks Corporation had 105,000 Ordinary Shares issued, 5,000 shares in the treasury, 10,000 shares subscribed and 10,000 5% Preference Shares, cumulative issued, P 100…
Adams, Peters, and Blake share profits and losses for their APB Partnership in a ratio of 2:3:5. When they decide to liquidate, the balance sheet is as follows: Assets Liabilities and Capital $ 54,000 12,800 228,000 Cash Adams, Loan Other Assets Liabilities Adams, Capital Peters, Capital Blake, Capital 82,200 $ 294,800 Total Liabilities and Equities $294,800 Liquidation expenses are expected to be negligible. No interest accrues on loans with partners after termination of the business. Required: Prepare a cash distribution plan for the APB Partnership. Please follow the practical guidelines when completing this worksheet. Total Assets $ 46,200 70,400 96,000
Banas and Belda are partners who share profits equally and losses in a 2:1 ratio. If they have beginning capital balances of P120,000 and P118,000, made no additional investments nor withdrawals, and suffered an unprofitable year with loss of P48,000, the capital balance of Banas will be:
Stephanie Calamba and Allan Brillantes decided to form a partnership. They agreed that Calamba will invest P200,000 andBrillantes, P300,000. Calamba will devote full time to the business, and Brillantes on part-time only. The following plans forthe division of profits are being considered: a. Equal divisionb. In the ratio of original investmentsc. In the ratio of time devoted to the businessd. Interest of 10% on original investments and the remainder in the ratio of 3:2e. Interest of 10% on original investments, salary allowances of P340,000 to Calamba and P170,000 to Brillantes, andthe remainder equally.f. Plan (e), except that Calamba is also to be allowed a bonus equal to the 20% of the amount by which profit exceedsthe salary allowances. Determine the partners’ share in profit or loss for each of the situations above assuming:(1) Profit of P1,500,000(2) Profit of P660,000
If all outside creditors and loans to partners had been paid, How would thebalance of the assets be distributed assuming Chapman had already receivedeach assets with a P30,000?
6. On June 30, 2020, the balance sheet for the partnership of Cabe, Danila, and Ellie, together with their respective profit and loss ratios, were as follows: P585,000 29,250 136,500 Assets, at cost Cabe, loan Cabe, capital (20%). Danila, capital (20%) Ellie, capital (60%) 126,750 1. 292,500 P585,000 Total Cabe has decided to retire from the partnership. By mutual agreement, the assets are to be adjusted to their fair value of P702,000 at June 30, 2020. t. was agreed that the partnership would pay Cabe P198,900 cash for Cabe's partnership interest, including Cabe 's loan which is to be repaid in full. No goodwill is to be recorded. After Cabe's retirement, what is the balance of Danila's capital account? a. P118,462.50 b. P126,750 C. P147,712.50 d. P150,150
Cena, Batista, and Lashley share profits in 5:3:2 ratios. their capital accounts prior to liquidation (which is expected to resultin substantial gain) are as follows: Cena P 18,000 Cr. BalanceBatista P 27,000 Cr. BalanceLashley P 3,000 Dr. Balance The partners wish to distribute cash as it becomes available so that the capital accounts may be brought into the profits and loss ratio as rapidly as possible. Who is the partner to receive the first available cash and up to how much? a. Cena, up to P 54,000b. Batista, up to P45,000c. Batista, up to P 16,200d. Cena, up to P16,200
1. Jag, Lee and Bench are partners having the following capital balances of P 11,200, P13,000 and P5,800respectively. Profits and losses are shared 4:2:1. How much is the total loss on realization?Required to answer. Single choice. a. P2,100 b. P27,900 c. P30,000 d. P1,200
Bucao, Basco, and Blanco share profits and losses in the ratio of 2:3:5, respectively. Their partnership realized a profit of P1,800,000 during the year. Bucao, with a beginning capital balance of P1,000,000 withdrew P200,000 during the year. Bucao’s ending capital balance isa. P 560,000 c. P1,160,000b. P1,000,000 d. P1,360,000
The following balances as at October 31, 2016 for the Partnership of Kathy , Lilia and Minda were as follows : Kathy , Capital 127,500 Lilia , Capital 82,500 Minda , Capital 225,000 Kathy has decided to retire from the partnership on October 31. Their profit and loss ratio is 3:3 :4 to Kathy , Lilia and Minda , respectively. Assumptions : A. The partnership will purchase the interest by paying 168,000 and no goodwill is to be recorded. B. The partnership will purchase the interest by paying 126, 000 and no goodwill is to be recorded C. The partnership will purchase the interest by paying 150, 000 and goodwill is to be recorded . Required: i. Table (like in the discussion ). ii. Entry upon retirement of Kathy. iii.Answers to the following questions: 1. What will be the total capital of the partnership upon Kathy's retirement? 2. What will be the new partnership sharing agreement? 3. What amount of capital will be debited / credited to Kathy upon Kathy's retirement? ( indicate…