The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation:CashNoncash assets$ 41,000229,000LiabilitiesDrysdale, loanDrysdale, capital (50%)Koufax, capital (30%)Marichal, capital (20%)$46,50021,00077,50067,50057,500a-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 $20,000. Prepare a predistribution schedule to guide the distribution ofcash. Further, modify the tags in explanation as well.b. Assume that assets costing $79,000 are sold for $62,500. How is the available cash to be divided?

The allocation of profit and loss in line with the ratio for sharing profits and losses.It is…

he Drysdale, Koufax, and Marichal partnership has the following balance sheet immediatel $ 41,000 229,000 Liabilities Drysdale, loan Drysdale, capital (50%) Koufax, capital (30%) Marichal, capital (20%) Cash Noncash assets $46,500 21,000 77,500 67,500 57,500

he Drysdale, Koufax, and Marichal partnership has the following balance sheet immediatel $ 41,000 229,000 Liabilities Drysdale, loan Drysdale, capital (50%) Koufax, capital (30%) Marichal, capital (20%) Cash Noncash assets $46,500 21,000 77,500 67,500 57,500

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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The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: Cash $ 61,000 Liabilities $ 55,000 Noncash assets 329,000 Drysdale, loan 42,500 Drysdale, capital (50%) 107,500 Koufax, capital (30%) 97,500 Marichal, capital (20%) 87,500 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 $21,000. Prepare a predistribution schedule to guide the distribution of cash. Further, modify the tags in explanation as well. b. Assume that assets costing $99,000 are sold for $72,500. How is the available cash to be divided?
Below is the pre-liquidation Balance Sheet for Cook, Pichai, & Barra Partners. Cook, Pichai, & Barra Partners Partnership Balance Sheet as of 12/31/20x1 Assets Liabilities and Partners’ Capital Cash $200,000 Liabilities $150,000 Noncash assets 300,000 Cook, Capital 100,000 Pichai, Capital 130,000 Barra, Capital 120,000 Total assets $500,000 Total Liabilities & Partners’ Capital $500,000 At this time, the partners have agreed to liquidate the partnership. Partners’ income/loss sharing ratios are Cook – 50%; Pichai - 25%; and Barra – 25%. In liquidation: Estimated liquidation expenses = $10,000 Partners expect to dispose of noncash assets for $180,000 Required: Using the information above, prepare a Pre-distribution Plan for the partnership, in good form.
JCA Partnership is entering into liquidation and you are given the following account balances: Cash 1,100,000 775,000 6,750,000 Liabilities Loan from A Noncash asset 150,000 J, capital (20%) 1,275,000 C, capital (20%) 1,625,000 3.375,000 A, capital (60%) Total liab, and capital Total Asset 7.525.000 7.525.000 During June, noncash asset with a book value of P1,875,000 were sold for P1,600,000. JCA paid P175,000 for the liquidation expenses it incurred and it also paid its liabilities to outsider creditors. However, creditors whose account balances amount to P150,000 decided to condone JCA's liabilities. % of the cash received from the sale of noncash assets were distributed to the partners. What is A's interest after the first cash distribution?
The ABC Partnership is to be liquidated. The ledger shows the following: Cash $ 70,000 Noncash Assets 220,000 Liabilities 90,000 A, Capital 85,000 B, Capital 90,000 C, Capital 25,000 A,B, and C's income ratios are 5:3:2, respectively. The non-cash assets are sold for $170,000. Instructions Prepare a schedule of liquidation using the following chart: Cash NC assets Liabilities A, Cap B, Cap C, Cap Beg Balance Sale of assets Balance Pay liabilities Balance Distribute cash End Balance Prepare the 4…
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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,…
The statement of financial position for the partnership of AA, BB and CC who share profits in the ratio of 2:1:1, shows the following balances just before the liquidation: Cash P12,000 Other assets 59,500 Liabilities 49,000 AA, capital 22,000 BB, capital 15,500 CC, capital (15,000) On the first instalment of the liquidation, a gain of P8,525 was realized from the sale of certain assets. Liquidation expenses of P1,000 was paid, and additional liquidation expenses are anticipated. Liabilities paid amounted to P34,000. Remaining book value of other assets is P1,550. On the first payment to partners, AA receives P6,250. How much is the amount of cash withheld for anticipated liquidation expenses and unpaid liabilities? Group of answer choices P1,550 P2,550 P27,650 P29,200
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Before liquidation, the following is the financial position of the partnership W, X, Y and Z: W, capital 275,000 W, loan 50,000 X, capital 225,000 Y, capital 257,500 Z, capital 342,500 P&L ratio is 4:3:2:1, respectively. 300,000 was received from certain assets are sold and are distributed to partners. What cash amount should Z receive? a. 300,000 b. 0 c. 135,834 d. 166,166
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Use the following information for the next two questions: Farewell Partnership is undergoing liquidation. Information on Farewell follows: Cash 40,000 Accounts receivable 180,000 Receivable from B 10,000 Inventory 160,000 Equipment 310,000 Total 700,000 Accrued liabilities 250,000 Payable to A 20,000 A, Capital (60%) 240,000 B, Capital (40%) 190,000 Total 700,000 Case #1: Lump-sum liquidation Information on the conversion of non-cash assets is as follows: Only 60% of the accounts receivable was collected; the balance is uncollectible. ₱50,000 was received for the entire inventory. The equipment was sold at its carrying amount. ₱10,000 Liquidation expenses were paid. Requirement: Determine the amounts of cash distributed to the partners in the final settlement of their capital…