Wolowitz and Koothrapali decided to form the WK Partnership. Shown below are their balance sheets before any adjustments: Wolowitz 82,000.00 816,300.00 291,200.00 1,660,000.00 12,100.00 Кothrapali 117,500.00 Cash Accounts receivable 1,186,100.00 576,300.00 Merchandise inventory Property and equipment (net) Other assets 971,100.00 9.400.00 2,860,400.00 TOTAL ASSETS 2,861,600.00 Accounts payable Notes payable Real mortgage payable Wolowitz, Capital Koothrapali, Capital 726,000.00 500,000.00 550,000.00 720,000.00 1,635,600.00 1,590,400.00 ТОTAL 2,861,600.00 2,860,400.00 The partners agreed that the property and equipment of Wolowitz is under depreciated by P166,000 and that of Koothrapali is over depreciated by P90,000. Accounts receivable of P82,000 in Wolowitz's books and P120,000 in Koothrapali's books are uncollectible and must be written off. The partnership decided not to assume responsibility on the real mortgage liability of Koothrapali. The partnership agreement provides for a profit and loss ratio and capital interest of 60:40 to Koothrapali and Wolowitz, respectively. Koothrapali is willing to invest or withdraw cash from the partnership to comply with the partnership agreement.
Wolowitz and Koothrapali decided to form the WK Partnership. Shown below are their balance sheets before any adjustments: Wolowitz 82,000.00 816,300.00 291,200.00 1,660,000.00 12,100.00 Кothrapali 117,500.00 Cash Accounts receivable 1,186,100.00 576,300.00 Merchandise inventory Property and equipment (net) Other assets 971,100.00 9.400.00 2,860,400.00 TOTAL ASSETS 2,861,600.00 Accounts payable Notes payable Real mortgage payable Wolowitz, Capital Koothrapali, Capital 726,000.00 500,000.00 550,000.00 720,000.00 1,635,600.00 1,590,400.00 ТОTAL 2,861,600.00 2,860,400.00 The partners agreed that the property and equipment of Wolowitz is under depreciated by P166,000 and that of Koothrapali is over depreciated by P90,000. Accounts receivable of P82,000 in Wolowitz's books and P120,000 in Koothrapali's books are uncollectible and must be written off. The partnership decided not to assume responsibility on the real mortgage liability of Koothrapali. The partnership agreement provides for a profit and loss ratio and capital interest of 60:40 to Koothrapali and Wolowitz, respectively. Koothrapali is willing to invest or withdraw cash from the partnership to comply with the partnership agreement.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
What is Koothrapali’s capital balance after adjustments but before making any cash investment or withdrawal?
How much cash shall Koothrapali invest (withdraw) to comply with the
Transcribed Image Text:Wolowitz and Koothrapali decided to form the WK Partnership. Shown below are their balance
sheets before any adjustments:
Wolowitz
Кoothrapali
Cash
82,000.00
117.500.00
Accounts receivable
Merchandise inventory
Property and equipment (net)
Other assets
816,300.00
1,186,100.00
576,300.00
291,200.00
1,660,000.00
971,100.00
12,100.00
9,400.00
TOTAL ASSETS
2,861,600.00
2,860,400.00
Accounts payable
Notes payable
Real mortgage payable
Wolowitz, Capital
Koothrapali, Capital
726,000.00
550,000.00
500,000.00
720,000.00
1,635,600.00
1,590,400.00
2,860,400.00
ТОTAL
2,861,600.00
The partners agreed that the property and equipment of Wolowitz is under depreciated by P166,000
and that of Koothrapali is over depreciated by P90,000. Accounts receivable of P82,000 in
Wolowitz's books and P120,000 in Koothrapali's books are uncollectible and must be written off.
The partnership decided not to assume responsibility on the real mortgage liability of Koothrapali.
The partnership agreement provides for a profit and loss ratio and capital interest of 60:40 to
Koothrapali and Wolowitz, respectively. Koothrapali is willing to invest or withdraw cash from
the partnership to comply with the partnership agreement.
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