The partnership of Winn, Xie, Yang, and Zed has the following balance sheet: $ 41,000 280,000 Cash Other assets Zed is personally insolvent, and one of Zed's creditors is considering suing the partnership for the $4,000 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 $4,000 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 $4,000 from the liquidation. Liquidation expenses are expected to be $26,000. b. For how much must the partnership sell the other assets to ensure that Zed receives $4,000 from the liquidation? Complete this question by entering your answers in the tabs below. Partner Balances Liabilities Winn, capital (50% of profits and losses) Xie, capital (30%) Yang, capital (10%) Zed, capital (10%) Sale of Assets Beginning capital Assumed loss of Schedule 1 Step one balances Assumed loss of Schedule 2 Step two balances Assumed loss of Schedule 3 Step three balances Prepare a predistribution plan to determine the amount for which the partnership must sell the other assets to ensure that Zed receives $10,000 from the liquidation. Liquidation expenses are expected to be $30,000. Zed Winn Xie $ 59,000 71,000 99,000 51,000 41,000 < Partner Balances Yang Sale of Assets >

The Field, Brown & Snow are partners and share income and losses equality. The partner decide to liquidate the partnership when their capital balances are as follows: Field, $130,700; Brown, $165,000; and Snow, $153,300. On May 31, the liquidation resulted in a loss of $406,500.   1. Compute the capital account balance of each partner after the loss from liquidation is allocated.   Note: Losses and negative capital balances, if any, should be entered with a minus sign.   2. Assume that the partner with a deficit pays cash to cover the deficit. Prepare the journal entries on May 31 to record (a) the cash received to cover the deficit and (b) the final disbursement of cash to the partners.

1. Mann, Haney and Young are partners. Haney, who has a capital balance of $140 000, has decided to retire. On February 1, Mann offers Haney $137 000 for his equity, and Haney accepts. Record the entry to record Haney's departure. 2. The book value of the automobile brought into the partnership (cost minus accumulated depreciation) is $18 000, it was determined by the partners that the fair market value was $16 000. Which value would you record? 3. Assume that Chantel Bertran and Steve Davey have a partnership, and each have $90 000 in their capital account. Lisa Dupuis offers to pay $66000, or $33 000 to each existing partner, for a one third interest in the partnership. Lisa is offering more than the $60 000 it would normally cost, because Chantel and Steve have built a successful business and Lisa feels it is worth an extra $6 000. The entry to record Lisa's admission to the partnership is: 4.S. Mann purchases 50% of R. Cameron's equity in the Williams-Cameron Partnership for…

The partnership of kapos, kulang and kasia was affected by the pandemic do the partners have decided to liquidate on December 31, 2019, and gave you the following balances: Cash 100,000 Outside Creditors 890,000 Non-Cash Asset 1,400,000 Loan due to kapos 10,000     Kapos, capital 90,000     Kulang, capital 190,000     Kasia, capital 320,000 The partners share profit and loss in the ratio 5:3:2, respectively. Non-cash asset was sold for 800,000. Kulang is a limited partner. The personal assets and liabilities of partners are as follows:   Asset Liabilities Kapos 300,000 150,000 Kulang 150,000 110,000 Kasia 200,000 150,000   Answer the following:   Gain/Loss absorbed by Kapos   Gain/Loss absorbed by Kulang   Gain/Loss absorbed by Kasia   Capital balance of Kapos after the sale of Non – Cash Asset   Capital balance of Kulang after the sale of Non – Cash Asset…

Capital X, Y, and Z are $10,000 and $8,000 and $10,000, respectively: Profits are divided in the ratio of 30%:25%:45%. On liquidation, all assets of the partnership firm are sold and converted into cash in an amount sufficient to pay all claims, except for one claim of $4,000. Z is personally therapeutically insolvent the other two partners are able to fulfill every obligation to the partnership firm. State how the solution should be done.

Wright, Bell, and Edison are partners and share income in a 2:5:3 ratio. The partnership's capital balances are as follows: Wright, $33,000, Bell $27,000 and Edison $40,000. Edison decides to withdraw from the partnership, and the partners agree not to revalue the assets upon Edison's retirement. The journal entry to record Edison's June 1 withdrawal from the partnership if Edison sells his interest to Whitney for $45,000 after the other two partners approve Whitney as partner is: Multiple Choice Debit Edison, Capital $45,000, credit Whitney, Capital $45,000 Debit Edison, Capital $40,000; credit Cash $40,000 Debit Edison, Capital $40,000; debit Wright, Capital $2.500; debit Bell, Capital $2.500; credit Whitney, Capital $45,000 Debit Edison, Capital $40,000, credit Whitney, Capital $40,000 Debit Edison, Capital $40,000, debit Cash $5,000, credit Whitney, Capital $45,000.

The partnership of Matteson, Richton, and O'Toole has existed for a number of years. At the present time, the partners have the following capital balances and profit and loss sharing percentages: Partner Matteson Richton O'Toole Capital Balance $ 143,550 O'Toole elects to withdraw from the partnership, leaving Matteson and Richton to operate the business. Following the original partnership agreement, when a partner withdraws, the partnership and all of its individual assets are to be reassessed to current fair values by an independent appraiser. The withdrawing partner will receive cash or other assets equal to that partner's current capital balance after including an appropriate share of any adjustment indicated by the appraisal. Gains and losses indicated by the appraisal are allocated using the regular profit and loss percentages. 186,450 170,000 An independent appraiser is hired and estimates that the partnership as a whole is worth $530,000. Regarding the individual assets, the…

Bell’s creditors have filed a $31,000 claim against the partnership’s assets. The partnership currently holds assets of $400,000 and liabilities of $158,000. If the assets can be sold for $240,000, what is the minimum amount that Bell’s creditors would receive? Multiple Choice $1,000 $3,200 $12,000 $0

The partnership of Ace, Ball, Eaton, and Lake currently holds three assets: Cash, $10,000; Land, $35,000; and Building, $50,000. The partnership has no liabilities. The partners anticipate that expenses required to liquidate their partnership will amount to $5,000. Capital balances are as follows: Ace, capital Ball, capital Eaton, capital Lake, capital $ 25,000 28,000 20,000 22,000 The partners share profits and losses as follows: Ace (30 percent), Ball (30 percent), Eaton (20 percent), and Lake (20 percent). If a preliminary distribution of cash is to be made, what is the amount of safe payment that can be made to each partner? (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) Ace Ball Eaton Lake Safe payments $ 5,000 $ 5,000 $ 3,333 $ 3,333

The partnership of kapos, kulang and kasia was affected by the pandemic do the partners have decided to liquidate on December 31, 2019 and gave you the following balances: Cash 100,000 Outside Creditors 890,000 Non-Cash Asset 1,400,000 Loan due to kapos 10,000 Карos, capital Kulang, capital Kasia, capital 90,000 190,000 320,000 The partners share profit and loss in the ratio 5:3:2, respectively. Non cash asset was sold for 800,000. Kulang is a limited partner. The personal assets and liabilities of partners are as follows: w Asset Liabilities Карos Kulang 300,000 150,000 150,000 110,000 Kasia 200,000 150,000 Answer the following: Gain/Loss absorbed by Kapos Gain/Loss absorbed by Kulang Gain/Loss absorbed by Kasia Capital balance of Kapos after sale of Non – Cash Asset Capital balance of Kulang after sale of Non - Cash Asset Additional Investment by Kapos Additional Investment by Kulang Final Settlement to Kapos Final Settlement to Kulang Final Settlement to Kasia