Partnership liquidation I only have a question on one part of my problem, so I am adding only the relevant data for my question. Noncash assets= 100,000 Tim, Capital(20%)=(15,000) 1. Before beginning liquidation activities, Tim must eliminate his deficit balance. Assuming the noncash assets have zero value, what is the maximum amount Tim must contribute to the partnership to eliminate the deficit balance in her capital account? Would this be $15,000 instead of $35,000 as noncash assets have zero value?
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- Write a Sample Format of Statement of Liquidation (Lump Sump) Other Instruction (Assumptions) 1. Values should be written as XXX if positive and (XXX) if negative 2. 7 Partners [JJ, Simon, Harry, Vik, Josh, Ethan and Tobi] 3. There is a gain in the realization of assets 4. There is liquidation expense. 5. Simon has receivables from partnership. 6. Ethan and Tobi have payables to the partnership (Non-anonymous question) *Watts and Lyon are forming a partnership. Watts invests $40,500 and Lyon invests $49,500. The partners agree that Watts will work one-fourth of the total time devoted to the partnership and Lyon will work three-fourths. They have discussed the following alternative plans for sharing income and loss: (a) in the ratio of their initial capital investments; (b) in proportion to the time devoted to the business; (c) a salary allowance of $15,000 per year to Lyon and the remaining balance in accordance with the ratio of their initial capital investments; or (d) a salary allowance of $15,000 per year to Lyon, 11% interest on their initial capital investments, and the remaining balance shared equally. The partners expect the business to perform as follows: Year 1, $13,000 net loss; Year 2, $32,500 net income; and Year 3, $54,167 net income. Required: Complete the tables, one for each of the first three years, by showing how to allocate partnership income or loss to the partners under each of…Enchong and Francis have capital balances of P 80,000 and P 100,000, respectively before distribution. Their profit and loss is 40:60. Assuming that the partnership still has non-cash assets with a total carrying amount of P 140,000 (no future liquidation expenses, no cash to be retained and all liabilities have already been settled), how much should Enchong receive as partial payment?
- The partnership of Anderson, Berry, Hammond, and Winwood is being liquidated. It currently holds cash of $20,000 but no other assets. Liabilities amount to $30,000. The capital balances are If both Hammond and Winwood are personally insolvent, how much money must Berry contribute to this partnership? If only Winwood is personally insolvent, how much money must Hammond contribute to the partnership? How will these funds be disbursed? If only Hammond is personally insolvent, how much money should Anderson receive from the liquidation?6. On June 30, 2020, the balance sheet for the partnership of Cabe, Danila, and Ellie, together with their respective profit and loss ratios, were as follows: P585,000 29,250 136,500 Assets, at cost Cabe, loan Cabe, capital (20%). Danila, capital (20%) Ellie, capital (60%) 126,750 1. 292,500 P585,000 Total Cabe has decided to retire from the partnership. By mutual agreement, the assets are to be adjusted to their fair value of P702,000 at June 30, 2020. t. was agreed that the partnership would pay Cabe P198,900 cash for Cabe's partnership interest, including Cabe 's loan which is to be repaid in full. No goodwill is to be recorded. After Cabe's retirement, what is the balance of Danila's capital account? a. P118,462.50 b. P126,750 C. P147,712.50 d. P150,150. Pete is joining the partnership of Rey, Tan and Val whose capital balances and profit and loss sharing ratio are as follows: Capital Balance Rey Tan P/L Ratio P15,000 20,000 20% 40 Val 18,000 40 Refer to Problem 1: If Pete pays P4,200 for 4 of the interest of Tan, and the deficiency in the consideration due to overstatement of partnership assets, what entries must be made on the partnership books incidental to the admission of Pete? Determine the resulting capital balances of the partners.
- Write a Sample Format of Statement of Liquidation (Lump Sump) Other Instruction (Assumptions) 1. Values should be written as XXX if positive and (XXX) if negative 2. 7 Partners [Jk, V, RM, Jimin, Hobi, Jin and Suga] 3. There is a gain in the realization of assets 4. There is liquidation expense. 5. V has receivables from partnership. 6. Jin and Suga have payables to the partnershipJosiah Barlow, Patty DuMont, and Owen Maholic are contemplating the formation og a partnership. According to the partnership agreement, Barlow is to invest $60,000 and devote one-half time, DuMont is to invest $40,000 and devote three-fourths time, and Maholic is to make no investment and devote full time. Would Maholic be correct in assuming that since he is not contributing any assets to the firm, he is risking nothing? Explain.Jacob, Susan, and Cody each have a $330,000 capital balance. They share profits and losses as follows: 2:6:2 to Jacob, Susan, and Cody, respectively. Suppose Cody is withdrawing from the business. Requirements 1. Journalize the withdrawal of Cody if the partnership agrees to pay Cody $330,000 cash. 2. Journalize the withdrawal of Cody if the partnership agrees to pay Cody $210,000 cash. ..... Requirement 1. Journalize the withdrawal of Cody if the partnership agrees to pay Cody $330,000 cash. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit
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