Finch, Plover, and Oriole are partners sharing profits and losses 50/20/30 respectively. Their balancesheet is below: Cash $180,000 Payables to Creditors $240,000 Receivable from Finch 40,000 Payableto Plover 50,000 Property & Equipment 500,000 Finch, Capital 100,000 Plover, Capital 180,000Oriole, Capital 150,000 $720,000 $720, 000 Prepare a Cash - Predistribution Schedule, assuming $30,000 of liquidation expenses.

A partnership business is defined as one in which two or more people provide the capital to…

Answered: Finch, Plover, and Oriole are partners…

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Finch, Plover, and Oriole are partners sharing profits and losses 50/20/30 respectively. Their bala

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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Item Nos. 6 and 7 are based on the following information: The following are the capital balances and profit and loss ratios of the partners Mona, Nona, and Ona: Capital Profit & Loss Ratio Mona- P 20,000 20% Nona 10,000 30% Ona- 5,000 50% Total-- P 35,000 100% After realization of the assets and payment of liabilities, the cash available for distribution was P 18,000. Any capital deficiency is uncollectible. 6. What was the loss on realization? a. P 15,000. C. P 17,000. b. P 16,000. d. P 18,000. 7. How should the cash be distributed? b. a. Mona, P 3,600; Nona, P 5,400; and Ona, P 4,000. Mona, P 6,000; Nona, P 6,000; and Ona, P 6,000. c. Mona, P 15,200; Nona, P 2,800; and Ona, P O. d. Mona, P 18,000; Nona, P 0; and Ona, PO.
2. Grouse, Flicker, and Partridge are partners sharing profits and losses 20/40/40 respectively. Their balance sheet is below. Cash $200,000 Payables to Creditors $300,000 Receivable from Grouse 50,000 Loan to Partridge, 10,000 Receivable from Flicker 20,000 Grouse, Capital 240,000 Property & Equipment 480,000 Flicker, Capital 250,000 Goodwill 100,000 Partridge, Capital 50,000 $850,000 $850,000 The business is doing poorly, and they decided to liquidate. As such, the goodwill is non-existent. The goodwill was recorded when Flicker entered the business and was put entirely into Flicker's capital. The non-cash assets were sold for $200,000, and there are $20,000 of liquidation expenses. All partners are personally insolvent. Prepare a liqudation schedule showing any cash available to the partners.
C and F formed a partnership. The following are their contributions: C F Cash P520,967 Accounts Receivable 83,790 Inventory 60,312 Land P1,908,300 Building 2,598,000 Total 665,069 4,506,300 Note Payable 67,984 C, Capital 597,085 F, Capital 4,506,300 Total 665,069 4,506,300 Additional Information: Included in accounts receivable is an account amounting to P22,454, which is deemed The inventory has an estimated selling price of P56,354 and estimated costs to sell of P22,567. A mortgage of P 250,000 on the land is shouldered by The building is over-depreciated by P323,555 The building also had a mortgage amounting to P231,356, which was already fully paid by The note payable is net of the discount on note payable amounting to P 15,234. Proper valuation requires the recognition of this C and F shall share in profits using the ratio 40:60 and in losses using…
1. Mary, Helga and Luz are partners who share profits and losses in the ratio of 4:2:2, respectively. The partners decide to liquidate and gave you the following balances: Cash P400,000 Accounts Payable P300,000 Accounts 200,000 Notes Payable 400,000 Receivables Mary, Capital Helga, Capital Luz, Capital Inventories 800,000 700.000 Equipment 700,000 400,000 Accumulated (100,000) 200,000 Depreciation a. Accounts Receivable were sold for P175,000 b. Inventories were sold for P820,000 c. Equipment were sold for P550,000 d. Liquidation expenses of P12,000 were paid Direction: A. Use the following table in support of the liquidation process. The cash balance after the payment of liabilities should reconcile with the capital balances. Capital Balances Mary P400,000 P700,000 P400,000 P200,000 Cash Helga Luz | Balances befor liquidation Sale of receivables at a loss Sale of inventories at a gain Sale of equipment at a loss Liquidation expenses paid Liabilities paid Distribution to partners B.…
Jane and Kathy are joining their separate business to form a partnership. Cash and non-cash assets are to be contributed for a total capital of P300,000. The non-cash assets are to be contributed and liabilities to be assumed are as follows: Jane Kathy Book Value Fair Value Book Value Fair Value Receivable Inventories Equipment Payable P 22,500 22,500 37,500 11,250 P 22,500 33,750 30,000 11,250 P 60,000 67,500 7,500 P67,500 71,250 7,500 The partner's capital accounts are to be equal after all contributions of assets and assumptions of liabilities. Determine the total assets of the partnership.
1. Mary, Helga, and Luz are partners who share profits and losses in the ratio of 4 2 2, respectively. The partners decide to liquidate and gave you the following balances EXERCISES P400,000 200,000 800,000 700,000 (100,000) Cash Accounts Receivables P300,000 400,000 700,000 400,000 200,000 Accounts Receivable were sold for P175,000 b) Inventories were sold for P820,000 a Equipment were sold for P550,000 and d) Liquidation expenses of P12,000 were paid. Accounts Payable Notes Payable Mary, Capital Helga, Capital Luz, Capital Inventories Equipment Accumulated Depreciation Direction: a) Use the following table in support of the liquidation process. The cash balance after the payment of liabilities should reconcile with the capital balances. Capital Balances Mary Cash Helga Luz Balances before liquidation Sale of receivables at a loss Sale of inventories at a gain Sale of equipment at a loss Liquidation expenses paid Liabilities paid Distribution to partners 400,000 700,000 400,000…
On June 1, 20x10, HEAD and ACHE decided to form a partnership contributing their existing businesses. The following is taken form their trial balance: HEAD ACHE Cash 250,000 150,000 Receivables (net) 100,000 80,000 Inventory 125,000 150,000 500,000 400,000 Fixed Assets (net) Liabilities 250,000 250,000 The partners agreed on the following: 1. P50,000 of HEAD'S cash represents converted foreign currencies amounting to FC1,000 on December 31, 20x9. The current spot rate of FC1 is equivalent to P53. 2. The receivables of HEAD and ACHE, currently have a net realizable value of 80% it is agreed that their net realizable value must be adjusted to 75%. 3. HEAD's inventory has a NRV of P140,000 and could be currently sold for P200,000. HEAD's machine was purchased last year with a 5-year life. It's estimated current value is 90% of its cost. 5. ACHE's fixed asset has an 80% condition percentage. If bought brand new, its price would be P550,000. 6. The partners are to share in profits and…
Jack, Jill, Dick and Jane are partners with capitals of P 22,000, P 20,600, P 27,400 and P 18,000 respectively. Jack has a loan balance of P 4,000. Profits and losses are shared 40%; 30%; 20%; 10% by Jack, Jill, Dick and Jane respectively. Assuming assets were sold and liabilities paid and the balance of cash showed P 24,000. Prepare a schedule showing how the P 24,000 will be distributed to the partners.C.
X, Y and Z were partners sharing profits in the proportion of 3:2:1. Y Retires from the business. The Balance sheet of the firm on the date of retirement was as follows Liabilities Creditors Bills Payable General Reserve Capital Accounts X Y Z Amount (RO) 80,000 Cash at Bank 40,000 Stock 60,000 Debtors LESS Provision 160,000 RO 2000 120,000 Vehicle 80,000 540,000 Assets Machinery It was agreed among the partners Goodwill of the firm to be valued at Provision for Doubtful debts to be increased by Outstanding expenses to be brought into account Vehicle is to be depreciated by Stock is to be depreciated by Machinery is to be appreciated by Amount (RO) 20,000 60,000 80,000 100,000 280,000 540,000 96,000 4,000 7,600 17.5% 12.5% 7.5% Record the necessary Journal Entries and Prepare the necessary accounts and New Balance sheet of X and Z.
On June 1, 20x10, HEAD and ACHE decided to form a partnership contributing their existing businesses. The following is taken form their trial balance: HEAD ACHE Cash 150,000 250,000 100,000 Receivables (net) 80,000 Inventory 125,000 150,000 500,000 400,000 Fixed Assets (net) Liabilities 250,000 250,000 The partners agreed on the following: 1. P50,000 of HEAD'S cash represents converted foreign currencies amounting to FC1, 000 on December 31, 20x9. The current spot rate of FC1 is equivalent to P53. 2. The receivables of HEAD and ACHE, currently have a net realizable value of 80% it is agreed that their net realizable value must be adjusted to 75%. HEAD's inventory has a NRV of P140,000 and could be currently sold for P200,000. 3. life. It's estimated HEAD's machine was purchased last year with a 5-year current value is 90% of its cost. 5. ACHE's fixed asset has an 80% condition percentage. If bought brand new, its price would be P550,000. 6. The partners are to share in profits and…
I need help with Part B John, Jake, and Joe are partners with capital accounts of $88,000, $74,000, and $62,000 respectively. They share profits and losses in the ratio of 30:40:30. When the partners decide to liquidate, the business has $71,000 in cash, noncash assets totaling $256,000, and $103,000 in liabilities. The non-cash assets are sold for $268,000, and the creditors are paid. (a) Your answer is correct. Prepare a schedule of partnership liquidation. (Enter credit balance of an account and credit posting to an account with negative sign preceding the number, e.g. -45 or parentheses, e.g. (45).) Noncash Capital Balances Cash Assets Liabilities John Jake Joe $ $ $ $ $ $…
On June 1, 20x10, HEAD and ACHE decided to form a partnership contributing their existing businesses. The following is taken form their trial balance: HEAD ACHE Cash 250,000 150,000 100,000 80,000 Receivables (net) Inventory 125,000 150,000 500,000 400,000 Fixed Assets (net) Liabilities 250,000 250,000 The partners agreed on the following: 1. P50,000 of HEAD'S cash represents converted foreign currencies amounting to FC1,000 on December 31, 20x9. The current spot rate of FC1 is equivalent to P53. 2. The receivables of HEAD and ACHE, currently have a net realizable value of 80% it is agreed that their net realizable value must be adjusted to 75%. HEAD's inventory has a NRV of P140,000 and could be currently sold for P200,000. 3. HEAD's machine was purchased last year with a 5-year life. It's estimated current value is 90% of its cost. 5. ACHE's fixed asset has an 80% condition percentage. If bought brand new, its price would be P550,000. 6. The partners are to share in profits and…