Advanced Accounting
14th Edition
ISBN: 9781260247824
Author: Joe Ben Hoyle, Thomas F. Schaefer, Timothy S. Doupnik
Publisher: RENT MCG
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Question
Chapter 15, Problem 26P
a.
To determine
Determine the amount of money that person B should contribute to the
b.
To determine
Determine the amount of money that person H should contribute to the partnership if only person W is insolvent.
c.
To determine
Determine the amount of money that person A should receive from the liquidation if only person H is personally insolvent.
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Students have asked these similar questions
The partnership of Ramos, Rios, Safar, and Wong is being liquidated. It currently holds cash of $21,800 but no other assets. Liabilities
amount to $55,400. The capital balances are
Ramos (40% of profits and losses)
Rios (20%)
Safar (20%)
Wong (20%)
Required:
$ 26,400
24,000
(40,000) (deficit)
(44,000) (deficit)
a. If both Safar and Wong are personally insolvent, how much money must Rios contribute to the partnership?
b-1. If only Wong is personally insolvent, how much money must Safar contribute to the partnership?
b-2. If only Wong is personally insolvent, how will Safar's contribution (funds) be distributed?
c. If only Safar is personally insolvent, how much money should Ramos receive from the liquidation?
Note: For all requirements, do not round intermediate calculations. Round your answers to the nearest whole dollar amount.
* Answer is complete but not entirely correct.
a.
Rio's contribution
$
66,000
b-1
Safar contribution
$ (40,000)
b-
Creditors
$
21,800x
2.
b-
Ramos
$
66,000
2.…
The partnership of Anderson, Berry, Hammond, and Winwood is being liquidated. It currently holds cash of $21,000 but no other assets. Liabilities amount to $34,000. The capital balances are
Â
Â
Â
Â
Â
Â
Anderson (40% of profits and losses)
$
32,000
Â
Â
Berry (20%)
Â
15,000
Â
Â
Hammond (20%)
Â
(28,000
)
(deficit)
Winwood (20%)
Â
(32,000
)
(deficit)
Â
Â
a. If both Hammond and Winwood are personally insolvent, how much money must Berry contribute to this partnership?
b-1. If only Winwood is personally insolvent, how much money must Hammond contribute to the partnership?
b-2. If only Winwood is personally insolvent, how will Hammond's contribution (funds) be disbursed?
c. If only Hammond is personally insolvent, how much money should Anderson receive from the liquidation?
The partnership of Kylie, Bamboo and Tank is being liquidated. The summarized balance sheet
below depicts their financial position before liquidation:
Cash
Loans to Tank
Other non-cash assets
P
30,000
70,000
600,000
The other non-cash assets were sold at P400,000.
1. The excess cash distributed to Kylie is P40,000
A. True
B. False
Accounts payables P
Kylie, loan
Kylie, capital (40%)
Bambo, capital (20%)
Tank, capital (40%)
2. The excess cash distributed to Tank is P110,000
A. True
B. False
3. The ending balance of non-cash assets after liquidation is P200,000
A. True
B. False
280,000
30,000
90,000
150,000
150,000
Chapter 15 Solutions
Advanced Accounting
Ch. 15 - Prob. 1QCh. 15 - Prob. 2QCh. 15 - Prob. 3QCh. 15 - Prob. 4QCh. 15 - What is the purpose of a statement of liquidation?...Ch. 15 - Prob. 1PCh. 15 - Prob. 2PCh. 15 - Prob. 3PCh. 15 - Prob. 4PCh. 15 - A partnership is considering possible liquidation...
Ch. 15 - What is a predistribution plan? a. A list of the...Ch. 15 - Prob. 7PCh. 15 - Prob. 8PCh. 15 - Prob. 9PCh. 15 - Prob. 10PCh. 15 - Prob. 11PCh. 15 - Prob. 12PCh. 15 - Prob. 13PCh. 15 - Prob. 14PCh. 15 - Prob. 15PCh. 15 - Prob. 16PCh. 15 - Prob. 17PCh. 15 - Prob. 18PCh. 15 - Prob. 25PCh. 15 - Prob. 26PCh. 15 - March, April, and May have been in partnership for...Ch. 15 - Prob. 28PCh. 15 - Prob. 29P
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