i need the answer quickly The partnership of Wing, Mehta, Rodgers, and Yan was formed several years ago as a local architectural firm. Several partners haverecently undergone personal financial problems and have decided to terminate operations and liquidate the business. The followingbalance sheet is drawn up as a guideline for this process:CashAccounts receivableInventoryLandBuilding and equipment (net)Total assets$ 47,000114,000133,000101,000184,000LiabilitiesRodgers, loanWing, capital (30%)Mehta, capital (18%)Rodgers, capital (20x)Yan, capital (48%)$579,000Total liabilities and capital$ 63,00067,000168,000128,00098,80271,000$ 579,000When the liquidation commenced, liquidation expenses of $14,000 were anticipated as being necessary to dispose of all property.Required:Part APrepare a predistribution plan for this partnership.Part BThe following transactions transpire during the liquidation of the Wing. Mehta, Rodgers, and Yan partnership:1. Collected 90 percent of the total accounts receivable with the rest judged to be uncollectible.2. Sold the land, building, and equipment for $166,000.3. Distributed safe payments of cash.4. Learned that Yan, who has become personally insolvent, will make no further contributions.5. Paid all liabilities.6. Sold all inventory for $87,000.7. Distributed safe payments of cash again..8. Paid actual liquidation expenses of $8,000 only.9. Made final cash disbursements to the partners based on the assumption that all partners other than Yen are personally solvent.Prepare journal entries to record these liquidation transactions.Complete this question by entering your answers in the tabs below.Part APart BPrepare a predistribution plan for this partnership.Note: Do not round intermediate calculations.Wing. Mehta,Capital CapitalRodgers,Loan andCapitalYan,CapitalBeginning balancesAssumed loss of Schedule 1Step one balances$0 S0 S0SоAssumed loss of Schedule 2Step two balances$0 $0S050Assumed loss of Schedule 3Step three balances$0 S0S0SDPart APart B >

The process of closing a business and distributing its assets is called liquidation. The assets are…

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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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please simple to explain The partnership of Wingler, Norris, Rodgers, and Guthrie was formed several years ago as a local architectural firm. Several partners have recently undergone personal financial problems and have decided to terminate operations and liquidate the business. The following balance sheet is drawn up as a guideline for this process: $ 15,000 Liabilities 82,000 Rodgers, loan $ 74,000 35,000 120,000 88,000 74,000 60, 000 Cash Accounts receivable Inventory Land Building and equipment (net) Wingler, capital (30%) Norris, capital (10%) 168,000 Rodgers, capital (20%) Guthrie, capital (40%) 101,000 85,000 Total assets $451,000 Total liabilities and capital $451,000 When the liquidation commenced, liquidation expenses of $16,000 were anticipated as being necessary to dispose of all property. Part A Prepare a predistribution plan for this partnership. Part B The following transactions transpire during the liquidation of the Wingler, Norris, Rodgers, and Guthrie partnership: 1.…
The partners of Blossom Company have decided to liquidate their business. Noncash assets were sold for $117,800. The income ratios of the partners Cisneros, Gunselman, and Forren are 3 : 2 : 3, respectively. Complete the following schedule of cash payments for Blossom Company. (If an amount reduces the account balance then enter with a negative sign preceding the number e.g. -15,000 or parenthesis e.g. (15,000).) Item Cash + Noncash Assets = Liabilities + Cisneros Capital + Gunselman Capital + Forren Capital Balance before liquidation $14,900 $82,200 $32,400 $20,600 $33,600 $10,500 Sale of noncash assets and allocation of gain New balances Pay liabilities New Balances Cash distribution to partners…
The partners of Sandhill Company have decided to liquidate their business. Noncash assets were sold for $122,840. The income ratios of the partners Cisneros, Gunselman, and Forren are 3 : 2 : 3, respectively. Complete the following schedule of cash payments for Sandhill Company. (If an amount reduces the account balance then enter with a negative sign preceding the number e.g. -15,000 or parenthesis e.g. (15,000).) Item Cash + Noncash Assets = Liabilities + Cisneros Capital + Gunselman Capital + Forren Capital Balance before liquidation $15,600 $88,600 $37,700 $16,800 $35,400 $14,300 Sale of noncash assets and allocation of gain New balances Pay liabilities New Balances Cash distribution to partners…
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 partnership of Anthony and Davis had an unprotitable year and agreed to liquidate their business on December 31, 2019. The Statement of Financial Position as of December 31, 2019 is presented below: ASSETS P 1,000 Cash P 80,000 20,000 Accounts Receivable Less Allowance for Bad Debts Merchandise Inventory Prepaid Advertising Office Equipment Less Accumulated Depreciation TOTAL ASSETS 60,000 50,000 2,000 P 100,000 60,000 40.000 P 153,000 LIABILITIES AND EQUITY Accounts Payable Notes Payable (due October 31, 2020) Anthony, Capital Davis, Capital P 20,000 86,000 30,000 17,000 P 153,000 TOTAL LIABILITIES AND EQUITY The information concerning liquidation are as follows: 1. Accounts receivable's net carrying value plus 20% of the estimated bad debts were collected. 2. Merchandise inventory were realized for P 25,000 3. The contract for Prepaid Advertising has a cancellation value of P 800. 4. Office Equipment were realized equal to 60% of their book value. 5. Unrecorded Accounts Payable…
The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its business property. A balance sheet drawn up at this time shows the following account balances: Cash . . . . . . . . . . . . . . . . . . . $ 60,000 Liabilities . . . . . . . . . . . . . . .. $ 40,000Noncash assets . . . . . . . . . 219,000 Frick, capital (60%) . . . . . . . . 129,000Wilson, capital (20%) . . . . . . . 35,000Clarke, capital (20%) . . . . . . . .75,000 Part APrepare a predistribution plan for this partnership.Part BThe following transactions occur in liquidating this business:1. Distributed cash based on safe capital balances immediately to the partners. Liquidation expenses of $8,000 are estimated as a basis for this computation.2. Sold noncash assets with a book value of $94,000 for $60,000.3. Paid all liabilities.4. Distributed cash based on safe capital balances again.5. Sold remaining noncash assets for $51,000.6. Paid actual liquidation expenses of $6,000 only.7.…
F. The partnership of Anthony and Davis had an unprofitable year and agreed to liquidate their business on December 31, 2019. The Statement of Financial Position as of December 31, 2019 is presented below: ASŞETS Cash P 1,000 Accounts Receivable P 80,000 Less Allowance for Bad Debts 20,000 60,000 Merchandise Inventory 50,000 Prepaid Advertising Office Equipment Less Accumulated Depreciation 2,000 P 100,000 60,000 40.000 TOTAL ASSETS P 153,000 LIABILITIES AND EQUITY Accounts Payable P 20,000 Notes Payable (due October 31, 2020) Anthony, Capital Davis, Capital 86,000 30,000 17,000 TOTAL LIABILITIES AND EQUITY P 153,000 The information concerning liquidation are as follows: 1. Accounts receivable's net carrying value plus 20% of the estimated bad debts were collected. 2. Merchandise inventory were realized for P 25,000 3. The contract for Prepaid Advertising has a cancellation value of P 800. 4. Office Equipment were realized equal to 60% of their book value. 5. Unrecorded Accounts…
Sofia contributed the following business assets to S&S Partnership on March 3, 2022: FMV $ 45,000 $-0- $ 100,000 What is the basis in the equipment and the accounts receivable to S&S? Equipment Accounts receivable Multiple Choice Basis $ 75,000 Equipment $45,000; Accounts Receivable $100,000 Equipment $0; Accounts Receivable $0 Equipment $45,000; Accounts Receivable $0 Equipment $75,000; Accounts Receivable $0 Date purchased by Sofia 07/01/21 Various
Part A The partnership of Wingler, Norris, Rodgers, and Guthrie was formed several years ago as a local architectural firm. Several partners have recently undergone personal financial problems and have decided to terminate operations and liquidate the business. The following balance sheet is drawn up as a guideline for this process: Cash $ 15,000 Liabilities $ 74,000 Accounts receivable 82,000 Rodgers, loan 35,000 Inventory 101,000 Wingler, capital (30%) 120,000 Land 85,000 Norris, capital (10%) 88,000 Building and equipment (net) 168,000 Rodgers, capital (20%) 74,000 Guthrie, capital (40%) 60,000 Total assets $ 451,000 Total liabilities and capital $ 451,000 When the liquidation commenced, liquidation expenses of $16,000 were anticipated as being necessary to dispose of all property. Prepare a predistribution plan for this partnership.
A. After several years of operations, the partnership of Arenas, Dulay and Laurente is to be liquidated. After making the closing entries on June 30, 2018, the following accounts remained open: Account Title Debit Credit Cash P 50,000 Non-cash Assets 2,350,000 Liabilities 400,000 Arenas, Capital 900,000 Dulay, Capital 500,000 Laurente, Capital 600,000 The non-cash assets are sold for P2,650,000. Profits and losses are shared equally. Prepare a Statement of Partnership Liquidation and the entries to record the following: 1. Sale of all non-cash assets 2. Distribution of gain on realization to the partners 3. Payment of the liabilitites 4. Distribution of cash to the partners
M/s. Al Hilal LLC started with Capital OMR 800,000, Total Tangible Assets OMR 1,000,000 and Current Liabilities OMR 100,000 and decided to admit a new partner in the business and also to receive the amount of goodwill from the incoming partner. The concern wishes to calculate the value of goodwill on the basis of four years purchase of the firm by different methods, such as Average Profit and Super Profit. The books of accounts revealed some information related to past years' profits of 2011 - OMR 15,000, 2012 - OMR 20,000, 2013 - OMR 25,000, 2014 - OMR 30,000, 2015 - OMR 35,000, 2017 - OMR 40,000, 2018 - OMR 45,000, 2019 - OMR 50,000. The concern expects the Rate of Return @ 12.5 % normally. Compute the value of goodwill on the basis of 4 years purchase under Capitalization of Average Profit Method and Super Profit Method. Which method of goodwill calculation is beneficial for the firm? Why these two methods showing two different values? Give your comments with the calculated values.
EXERCISE 8-9. Problem Solving 1: Selling price of non-cash assets; cash distribution. As of December 31, 2019, the books of May, Mae, and Mei showed capital balances of P300,000, P250,000, and P100,000, respectively, and cash balance of P25,000. They shared profits and losses equally. On that date, the partners decided to liquidate due to personal reasons. They sold all non-cash assets to Mia at a loss of P90,000. After settling the liabilities to external creditors amounting to P100,000, the partnership had enough cash to distribute to the partners that included a loan from May in the amount of P12,000. REQUIRED: 1. How much were the non-cash assets sold for? 2. How much cash was distributed to each partner?

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