2 The partnership of Winn, Xie, Yang, and Zed has the following balance sheet:CashOther assets$ 49,000300,000Liabilities$ 60,000Winn, capital (50% of profits and losses)Xie, capital (30%)79,000Yang, capital (10%)Zed, capital (10%)102,00059,00049,000Zed is personally insolvent, and one of his creditors is considering suing the partnership for the $3,000 that is currently owed. Thecreditor realizes that this litigation could result in partnership liquidation and does not wish to force such an extreme action unless Zedis reasonably sure of obtaining at least $3,000 from the liquidation.Prepare a predistribution plan to determine the amount for which the partnership must sell the other assets to ensure that Zedreceives $3,000 from the liquidation. Liquidation expenses are expected to be $34,000.(Do not round intermediate calculations.)Beginning capitalAssumed loss of Schedule 1Step one balancesAssumed loss of Schedule 2Step two balancesAssumed loss of Schedule 3Step three balancesWinnXieYangZed

It is an agreement between two or more parties to conduct the business and share the profits and…

The partnership of Winn, Xie, Yang, and Zed has the following balance sheet: Cash $ 49,000 Other assets 300,000 Liabilities Winn, capital (50% of profits and losses) Xie, capital (30%) Yang, capital (10%) Zed, capital (10%) $ 60,000 79,000 102,000 59,000 49,000 20 th

The partnership of Winn, Xie, Yang, and Zed has the following balance sheet: Cash $ 49,000 Other assets 300,000 Liabilities Winn, capital (50% of profits and losses) Xie, capital (30%) Yang, capital (10%) Zed, capital (10%) $ 60,000 79,000 102,000 59,000 49,000 20 th

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 partnership of Winn, Xie, Yang, and Zed has the following balance sheet: Cash Other assets $ 46,000 285,000 Liabilities $ 57,000 Winn, capital (50% of profits and losses) Xie, capital (30%) 76,000 96,000 Yang, capital (10%) Zed, capital (10%) 56,000 46,000 Zed is personally insolvent, and one of Zed's creditors is considering suing the partnership for the $3,000 that is currently owed. The creditor realizes that this litigation could result in partnership liquidation and does not wish to force such an extreme action unless Zed is reasonably sure of obtaining at least $3,000 from the liquidation. Required: a. Prepare a predistribution plan to determine the amount for which the partnership must sell the other assets to ensure that Zed receives $3,000 from the liquidation. Liquidation expenses are expected to be $31,000. b. For how much must the partnership sell the other assets to ensure that Zed receives $3,000 from the liquidation? Complete this question by entering your answers in…
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The partnership of Winn, Xie, Yang, and Zed has the following balance sheet: Cash Other assets $ 46,000 285,000 Liabilities Winn, capital (50% of profits and losses) Xie, capital (30%) Yang, capital (10%) Zed, capital (10%) Zed is personally insolvent, and one of his creditors is considering suing the partnership for the $3,000 that is currently owed. The creditor realizes that this litigation could result in partnership liquidation and does not wish to force such an extreme action unless Zed is reasonably sure of obtaining at least $3,000 from the liquidation. Beginning capital Assumed loss of Schedule 1 Step one balances Assumed loss of Schedule 2 Prepare a predistribution plan to determine the amount for which the partnership must sell the other assets to ensure that Zed receives $3,000 from the liquidation. Liquidation expenses are expected to be $31,000. (Do not round intermediate calculations.) Step two balances Assumed loss of Schedule 3 Step three balances $ $ $ Winn 0 $ 0 $ 0…
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