On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership. The following information was made available: Cash Accounts Receivable Inventory Furniture & fixtures, net Total Accounts Payable A, Capital (70%) B, Capital (30%) Total 30,000 380,000 260,000 Accounts receivable, $350,000 Inventory, P250,000 Furniture, P135,000 120,000 790,000 165,000 350,000 175,000 790,000 C offered to buy for $760,000 the partnership assets including liabilities but excluding cash and aft certain assets are to be restated to their fair values as follows: How much will A and B receive as the final settlement of their partnership interests?

On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership. The following information was made available: Cash Accounts Receivable Inventory Furniture & fixtures, net Total Accounts Payable A, Capital (70%) B, Capital (30%) Total 30,000 380,000 260,000 Accounts receivable, $350,000 Inventory, P250,000 Furniture, P135,000 120,000 790,000 165,000 350,000 175,000 790,000 C offered to buy for $760,000 the partnership assets including liabilities but excluding cash and aft certain assets are to be restated to their fair values as follows: How much will A and B receive as the final settlement of their partnership interests?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

35. The statement of financial position for the partnership of BBB, CCC and DDD who share profits in the ratio of 2:1:1, shows the following balances just before the liquidation: Cash P12,000Other assets 59,500Liabilities 49,000BBB, capital 22,000CCC, capital 15,500DDD, capital (15,000) On the first installment 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 P34,400. Remaining book value of other assets is P1,550. On the first payment to partners, CCC receives P6,250. The amount of cash withheld for anticipated liquidation expenses and unpaid liabilities is: a. 11,475b. 14,600c. 26,075d. 29,200
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 partnership of H, M and R is liquidating and the ledger shows the following:Dr. Cash- P80,000Dr. Inventories- P100,000Cr. Accounts payable- P60,000Cr. H, Capital (50%)- P45,000Cr. M, Capital (25%)- P40,000Cr. R, Capital (25%)- P35,000If all cash available is distributed immediately: a. M should get P15,000 and R should get P5,000 b. M should get P12,500, and R should get P7,500 c. each partner should get P6,667 each d. each partner should get P26,667 each
On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership. The following information was made available: Cash Accounts receivable Inventory Equipment Total 80,000 Accounts payable 120,000 240,000 Payable to B 480,000 A, Capital (20%) 1,200,000 B, Capital (30%) 2,000,000 C, Capital (50%) 80,000 400,000 600,000 800,000 Information on the conversion of non-cash assets is as follows: • P200,000 was collected on accounts receivable; the balance is uncollectible. P280,000 was received for the entire inventory. The equipment was sold for P1,000,000. P8,000 liquidation expenses were paid. How much did C receive from the settlement of his interest in the partnership?
On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership. 80,000 240,000 480,000 1,200,000 2,000,000 Cash Accounts receivable Inventory Equipment Total Accounts payable to B Payable A, Capital (20%) B, Capital (30%) C, Capital (50%) 800,000 Total 2,000,000 Information on the conversion of non-cash assets is as follows: 120,000 80,000 400,000 600,000 • $40,000 was collected on accounts receivable; the balance is uncollectible. $20,000 was received for the entire inventory. . The equipment was sold for $200,000./ $8,000 liquidation expenses were paid. • • #108,000 was paid to outside creditors, after offset of a 12,000 credit, memorandum received on January 2, 20x1. All of the partners are personally solvent. How much did B receive from the settlement of his interest in the partnership?
The partnership of H, M and R is liquidating and the ledger shows the following:Dr. Cash- P80,000Dr. Inventories- P100,000Cr. Accounts payable- P60,000Cr. H, Capital (50%)- P45,000Cr. M, Capital (25%)- P40,000Cr. R, Capital (25%)- P35,000If all cash available is distributed immediately: Choices: • M should get P12,500, and R should get P7,500 • each partner should get P26,667 each • each partner should get P6,667 each • M should get P15,000 and R should get P5,000
10. A, B and C agreed to liquidate their partnership. Information before the start of the liquidation process is as follows: Cash.. 25,200 297,600 Non-cash assets.. Notes payable to C.. 38,400 Other liabilities.. 184,800 72,000 A, capital (50%).. B, capital deficit (30%).. C, capital (20%).. (12,000) 39,600 Non-cash assets with carrying amount of P240,000 were sold for P216,000. Liquidation expenses of P16,800 were incurred. All the partners are insolvent. How much did C receive in the cash distribution to the partners? a. 46, 457 b. 74,571 с. 39,600 d. 0
On January 1, 20x1, the partners in ABC Co. decided to admit other investors and convert the partnership into a corporation. Relevant information follows: Carrying amounts Fair values Cash 80,000 80,000 Receivables 240,000 160,000 320,000 Inventory Equipment Payables A, Capital (20%) B, Capital (30%) C, Capital (50%) 280,000 2,160,000 2,680,000 200,000 200,000 600,000 N/A 800,000 N/A 1,200,000 N/A The corporation has an authorized capitalization of P8,000,000 divided into 200,000 ordinary shares with par value of P40 per share. Assume that the adjusted capital balances of the partners are used in determining the number of shares to be issued to each partner. What is the aggregate par value of the total shares issued to the partners?
On January 1. 20x20, ACJ Partnership entered into liquidation. The partners' capital balances on this date were as follows: A (25%) P2.500,000: C (35%) P5.400.000; J (40%) P3,700,000. The partnership has liabilities amounting to P4.400.000, including a loan from C P600.000. Cash on hand before the start of liquidation is P800,000. If C received P2.255.000. How much was the loss from the realization ol the noncash assets?
On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership. The following information was made available: Cash Accounts receivable Inventory Equipment Total Accounts payable A, Capital (20%) B, Capital (30%) C, Capital (50%) Total 80,000 240,000 480,000 1,200,000 2,000,000 600,000 200,000 400,000 800,000 2,000,000 The net proceeds from the sale of non-cash assets amounted to P260,000. The personal assets and personal liabilities of the partners are as follows: A с B Personal assets 1,200,000 1,040,000 800,000 Personal liabilities (880,000) (880,000) (1,280,000) How much additional contributions shall be made by the partners in order to settle all of the partnership liabilities?
Problem 4: The balance sheet of the partnership of ABCD Co just before liquidation is presented below: A, loan 5,000 27,500 A, capital (40%) B. capital (30%) HA 25,750 34,250 22,500 C, capital (20%) D, capital (10%) Certain assets are sold for P30,000 and this is distributed to the partners. How much cash should C receive?
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