8 Kendra, Cogley, and Mei share income and loss in a 3:2:1 ratio (in ratio form: Kendra, 3/6; Cogley, 2/6; and Mei, 1/6). The partners havedecided to liquidate their partnership. On the day of liquidation, their balance sheet appears as follows.AssetsCashInventoryTotal assets$ 86,200550,800Balance SheetAccounts payableKendra, CapitalCogley, CapitalMei, Capital$ 637,000 Total liabilities and equity1. Inventory is sold for $628,200.2. Inventory is sold for $451,800.LiabilitiesRequired:For each of the following scenarios, complete the schedule allocating the gain or loss on the sale of inventory. Prepare journal entriesto record the below transactions.Note: Do not round intermediate calculations. Enter losses and partner deficits, if any, as negative amounts.Required 1 GJ3. Inventory is sold for $316,800 and partners with deficits pay their deficits in cash.4. Inventory is sold for $271,200 and partners with deficits do not pay their deficits.Complete this question by entering your answers in the tabs below.Initial capital balancesAllocation of gains (losses)Capital balances after gains (losses)Required 1InventoryRequired 2InventoryRequired 3InventoryComplete the schedule allocating the gain or loss on the sale of inventory is $628,200.Step 1) Determination of Gain (Loss)Proceeds from the sale of inventoryInventory costRequired 2 GJStep 2) Allocation of the Gain (Loss) to the Partners.Equity$ 628,200$ 248,00077,800175,050136,150$ 637,000KENDRA$ 77.800< Required 1 InventoryRequired 3 GJCOGLEY$ 175,050Required 4Inventory$MEIRequired 1 GJRequired 4 GJTotal136,150 $ 389,000

Kendra, Cogley, and Mei share income and loss in a 3:2:1 ratio (in ratio form: Kendra, 3/6; Cogley, 2/6; and Mei, 1/6). The partners have decided to liquidate their partnership. On the day of liquidation, their balance sheet appears as follows. Assets Cash Inventory Total assets $86,200 550,800 $ 637,000 Balance Sheet Accounts payable Kendra, Capital Cogley, Capital Mei, Capital Total liabilities and equity Liabilities Equity $ 248,000 77,800 175,050 136,150 $ 637,000 Required: For each of the following scenarios, complete the schedule allocating the gain or loss on the sale of inventory. Prepare journal entries to record the below transactions. Note: Do not round intermediate calculations. Enter losses and partner deficits, if any, as negative amounts. 1. Inventory is sold for $628,200. 2. Inventory is sold for $451,800. 3. Inventory is sold for $316,800 and partners with deficits pay their deficits in cash. 4. Inventory is sold for $271,200 and partners with deficits do not pay their deficits.

Kendra, Cogley, and Mei share income and loss in a 3:2:1 ratio (in ratio form: Kendra, 3/6; Cogley, 2/6; and Mei, 1/6). The partners have decided to liquidate their partnership. On the day of liquidation, their balance sheet appears as follows. Assets Cash Inventory Total assets $86,200 550,800 $ 637,000 Balance Sheet Accounts payable Kendra, Capital Cogley, Capital Mei, Capital Total liabilities and equity Liabilities Equity $ 248,000 77,800 175,050 136,150 $ 637,000 Required: For each of the following scenarios, complete the schedule allocating the gain or loss on the sale of inventory. Prepare journal entries to record the below transactions. Note: Do not round intermediate calculations. Enter losses and partner deficits, if any, as negative amounts. 1. Inventory is sold for $628,200. 2. Inventory is sold for $451,800. 3. Inventory is sold for $316,800 and partners with deficits pay their deficits in cash. 4. Inventory is sold for $271,200 and partners with deficits do not pay their deficits.

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter11: Partnerships: Distributions, Transfer Of Interests, And Terminations

Section: Chapter Questions

Problem 27P

See similar textbooks

Similar questions

The ETO Partnership is in the process of liquidation. The account balances prior to liquidation are given below: Debits Credits P 72,000 10,000 15,000 20,000 21,000 Cash Liabilities P 40,000 Aurora, drawing Esteban, drawing Tyro, drawing Operating loss Esteban, loan Tyro, loan Aurora, capital Esteban, capital Tyro, capital 8,000 25,000 49,000 18,000 Loss on realization 12,000 10,000 The partners share profits in the following ratio: Aurora, 1/6; Esteban, 2/6; and Tyro, 3/6. Upon liquidation of the partnership, Aurora should have received:
Item Nos. 17 and 18 are based on the following information: The balance sheet for the partnership of Lia, Mia, and Pia, who share profits in the ratio of 2:1:1, respectively, shows the following balances just before liquidation: Cash P 12,000 Liabilities P 20,000 Noncash Assets- 59,500 Lia Capital --- 22,000 Mia Capital 15,500 Pia Capital--- 14,000 P 71,500 P 71,500 On the first month of liquidation, certain assets were sold for P 32,000. Liquidation expenses of P 1,000 were paid and additional liquidation expenses in the future are still anticipated. Liabilities were paid amounting to P 5,400 and sufficient cash was retained to ensure the payment to creditors before making payments to the partners. On the first payment to partners, Lia received P 6,250. 17. The total cash distributed to the partners in the first installment was: a. P 12,500. C. P 25,000. b. P 20,000. d. P 37,600. 18. The amount of cash withheld for anticipated liquidation expenses and unpaid liabilities was: a. P…
The following condensed balance sheet is for the partnership of Ludolf, Sambal, and Urad, who share profits and losses in the ratio of 6:2:2, respectively: Cash Other assets Liabilities Ludolf, capital $ 65,000 162,000 $ 43,000 81,000 Sambal, capital Urad, capital 81,000 22,000 Total assets $ 227,000 Total liabilities and capital $ 227,000 Required: a. Assuming no liquidation expenses, calculate the safe payments that can be made to partners at this point in time. b. For how much money must the other assets be sold so that each partner receives some amount of cash in a liquidation? Complete this question by entering your answers in the tabs below. Required A Required B Assuming no liquidation expenses, calculate the safe payments that can be made to partners at this point in time. Safe payments Ludolf Sambal Urad
5.1 Al and Tantay are partners sharing profits equally. The condensedbalance sheet of their partnership prior to liquidation is shownbelow: Assets Liabilities and EquityCash P1,900 Accounts Payable P 27,200Accounts Receivable 7,200 Al Capital 15,000Merchandise Inventory 16,400 Tantay Capital 5,000Equipment 21,700 P 47,200 P 47,200They decided to liquidate and the assets realized the followingamounts in cash:Accounts Receivable P 4,200Merchandise 11,200Equipment 16,000REQUIRED: Prepare working paper for the Statement of Liquidation using the lump sum liquidation method and give all the corresponding…
The Al, Joyce and Rich partnership’s condensed financial position prior to liquidation of the partnership reflected the following balances:Assets Liabilities and CapitalCash P24,000 Liabilities P70,000Noncash assets 360,000 Loan payable to Al 30,000 Al, Capital (50) 90,000 Joyce, Capital (30) 140,000 Rich, Capital (20) 54,000 Assuming assets with a book value of P140,000 were sold for P100,000 and that all available cash was distributed, what amount should the remaining assets be sold in order for Joyce to receive a total of P158,000 cash after liquidation?
5.1 Al and Tantay are partners sharing profits equally. The condensedbalance sheet of their partnership prior to liquidation is shownbelow: Assets Liabilities and EquityCash P1,900 Accounts Payable P 27,200Accounts Receivable 7,200 Al Capital 15,000Merchandise Inventory 16,400 Tantay Capital 5,000Equipment 21,700 P 47,200 P 47,200They decided to liquidate and the assets realized the followingamounts in cash:Accounts Receivable P 4,200Merchandise 11,200Equipment 16,000REQUIRED: Prepare working paper for the Statement of Liquidation using the lump sum liquidation method and give all the corresponding journal entries…
The financial position of the partnership Marie, Shey, Allan and Roi, just prior to liquidation shows: Marie, Loan 25,000 Marie, Capital 137,500 Shey, capital 128,750 Allan, capital 171,250 Roi, Capital 112,500 The partners share profits and losses on a 4:3:2:1 ratio, respectively. Certain assets are sold for P150,000 and is distributed to partners. How much cash should Allan receive? a. 0 b. 50,000 c. 67,917 d. 82,083
Numbers 16, 17 and 18 (Partnership Liquidation – Installment Liquidation) On December 31, 2018, the Statement of Financial Position of ABC Partnership with profit or loss ratio of 5:3:2 of respective partners A, B and C. showed the following information: Cash Noncash assets 1,600,000 1,400,000 Total Liabilities 2,000,000 100,000 A, Capital В, Сарital С, Сарital 500,000 400,000 On January 1, 2019, the partners decided to liquidate the partnership in installment. All partners are legally declared to be personally insolvent. As of January 31, 2019, the following transactions occurred: Noncash assets with a carrying amount P1,000,000 were sold at a gain of P100,000. Liquidation expenses for the month of January amounting to P50,000 were paid. It is estimated that liquidation expenses amounting to P150,000 will be incurred for the month of February, 2019. • 20% of the liabilities to third persons were settled. Available cash was distributed to the partners. As of February 28, 2019, the…
Required: Prepare the statement of liquidation.. Vic, Victor and Vincent are partners in Valentine partnership. They share profits and losses equally. Their financial position prior to liquidation follows: Lump-sum Liquidation Partnership is insolvent and partner/s are personally insolvent. Exercise 3. Valentine Partnership Statement of Financial Position As at August 31, 20xx Assets Liabilities and Capital P 80,000 800,000 Liabilities Cash Non-cash Assets P 480,000 40,000 Vic, Capital Victor, Capital Vincent, Capital Total Liabilities and Capital P 880.000 120,000 240.000 Total Assets P 880,000 The personal assets and liabilities of the partners, beside their equities in the partnership, are as follows: Personal Assets Personal Liabilities Partners P800,000 P500,000 : P 40,000 P300,000 P500,000 Vic Victor P140,000 Vincent Solvent partners are going to invest when cash is needed. Non-cash assets are sold for P425,000. Liabilities in the amount of P480,000 are paid.
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
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
the statement of financial position of the partnership of Bee, Cee and Dee, who share profits in the ratio of 2:1:1. Shows the following balances just before the liquidation. Cash P 12,000 Other assets 59,500 Liabilities 49,000 Bee, Capital 22,000 Cee, Capital 15,500 Dee, 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 P 1,000 were paid and additional liquidation expenses are anticipated. Liabilities amounting to P 34,400 were paid. Remaining book value of other assets is P 1,550. On the first payment to partners, Bee received P 6,250. How much was the amount of cash withheld for anticipated liquidation expenses and the remaining liabilities? P 14,600 P 11,475 P 26,075 P 29,200