Given information for question below: MAQHUZE WELDERS had the following balances when they commenced a simultenous liquidation of the partnership: Welding equipment (cost). Welding equipment (accumulated depreciation).. Trade receivables.. Trade payables.. 432 000 145 800 ... 70 200 32 400 ............ The following transactions took place as part of the liquidation: 1. Welding equipment were sold for... 2. Debtors settled their accounts in full 216000 3. On settlement, the creditors granted a settlement discount of.. 3. Liquidation costs amounted to.... 1700 27000 ........... QUESTION 1 Which one of the following alternatives represents the correct net profit (or loss) made on the simultaneous liquidation? A. 68 500 B. 74 500 C. 89 400 D. 76 200

Given information for question below: MAQHUZE WELDERS had the following balances when they commenced a simultenous liquidation of the partnership: Welding equipment (cost). Welding equipment (accumulated depreciation).. Trade receivables.. Trade payables.. 432 000 145 800 ... 70 200 32 400 ............ The following transactions took place as part of the liquidation: 1. Welding equipment were sold for... 2. Debtors settled their accounts in full 216000 3. On settlement, the creditors granted a settlement discount of.. 3. Liquidation costs amounted to.... 1700 27000 ........... QUESTION 1 Which one of the following alternatives represents the correct net profit (or loss) made on the simultaneous liquidation? A. 68 500 B. 74 500 C. 89 400 D. 76 200

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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Immediately prior to the process of liquidation, partners M, N, and O have capital balances of $70,000, $20,000, and $30,000 respectively. There is a cash balance of $10,000, noncash assets total $160,000, and liabilities total $50,000. The partners share net income and losses in the ratio of 2:2:1. Journalize the entries to record the liquidation outlined below, using “Assets” as the account title for the noncash assets and “Liabilities” as the account title for all creditors' claims. (a) Sold the noncash assets for $80,000 in cash. (b) Divided the loss on realization. (c) Paid the liabilities. (d) Received cash from the partner with the deficiency. (e) Distributed the cash to the partners. (for each Journal Entry, omit the 4th journalizing step of providing a brief explanation) JOURNAL Date Post. DR CR (a)…
ASSESSMENT ACTIVITIES: PARTNERSHIP ACCOUNTING Activity 3: The partnership of Kobe and Lebron began business on January 2, 2021. Each partner confributed the following assets (the noncash assets are stated at their fair values on January 1, 2021: Cash Inventory Land Kobe P 600,000 800,000 -0- 1.000,000 Lebron P 500,000 LOUIS Equipment 1,300,000 -0- The land was subject to a P500,000 mortgage, which the partnership assumed on January 1, 2021. The equipment was subject to an installment notes payable that had an unpaid principal amount of P200,000 on January 1, 2021. The partnership also assumed this notes payable. Kobe and Lebron agreed to share partnership income and losses in the following manner: Interest on beginning capital balances Salaries Remainder Jenny 3% 120,000 Kenny 3% 120,000 60% 40% During 2021, the following events occurred: 1. Inventory was acquired at a cost P300,000. At December 31, 2021, the partnership owed P60,000 to its suppliers. 2. Principal of P50,000 was paid…
The topic is about Partnership Liquidation. Based on the problem on the picture, choose the letter of correct answer; In November, Sarrah and Sapphira should receive: Sarrah Sapphira a. 45,000 67,500 b. 45,000 0 c. 0 67500 d. 81,500 103,500
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Financial Accounting and Reporting Topic: Liquidation – Installment
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The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: Cash Noncash assets Req A1 a-1. Determine the maximum loss that can be absorbed in Step 1. Then, assuming that this loss has been incurred, determine the next maximum loss that can be absorbed in Step 2. a-2. Liquidation expenses are estimated to be $19,000. Prepare a predistribution schedule to guide the distribution of cash. Further, modify the tags in explanation as well. b. Assume that assets costing $78,000 are sold for $62,000. How is the available cash to be divided? Complete this question by entering your answers in the tabs below. Step 1 $ 40,000 224,000 Partner Capital Balance Drysdale Koufax Marichal Determine the maximum loss that can be absorbed in Step 1. Then, assuming that this loss has been incurred, determine the next maximum loss that can be absorbed in Step 2. Step 2 Liabilities Drysdale, loan Drysdale, capital (50%) Koufax, capital (30%) Marichal,…