As of January 1, 2021, the partnership of Carlin, Yearly, and Granite had the following account balances and percentagesfor the sharing of profits and losses:Cash$160,000Noncash assets410,000Liabilities94,000Carlin, capital (30%)Yearly, capital (40%)Granite, capital (30%)276,000239,500(39,500)The partnership incurred losses in recent years and decided to liquidate. The liquidation expenses were expected to be$20,000.How much of the existing cash balance could be distributed safely to partners at this time?Short Answer Toolbar navigation.B I U S E : = E E E>

As granite capital is in negative the partner will bring cash upto that amount. 1. Determination…

As of January 1, 2021, the partnership of Carlin, Yearly, and Granite had the following account balances and percentages for the sharing of profits and losses: Cash $160,000 Noncash assets 410,000 Liabilities 94,000 Carlin, capital (30%) Yearly, capital (40%) 276,000 239,500 Granite, capital (30%) (39,500) The partnership incurred losses in recent years and decided to liquidate. The liquidation expenses were expected to be $20,000. How much of the existing cash balance could be distributed safely to partners at this time? Short Answer Toolbar navigation

As of January 1, 2021, the partnership of Carlin, Yearly, and Granite had the following account balances and percentages for the sharing of profits and losses: Cash $160,000 Noncash assets 410,000 Liabilities 94,000 Carlin, capital (30%) Yearly, capital (40%) 276,000 239,500 Granite, capital (30%) (39,500) The partnership incurred losses in recent years and decided to liquidate. The liquidation expenses were expected to be $20,000. How much of the existing cash balance could be distributed safely to partners at this time? Short Answer Toolbar navigation

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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As of January 1, 2018, the partnership of Canton, Yulls, and Garr had the following account balances and percentages for the sharing of profits and losses: Cash Noncash assets Liabilities Canton, capital (30%) Yulls, capital (40%) Garr, capital (30%) $ 80,000 205,000 47,000 138,000 119,500 (19,500 ) The partnership incurred losses in recent years and decided to liquidate. The liquidation expenses were expected to be $10,000. What would be the maximum amount Garr might have to contribute to the partnership to eliminate a deficit balance in his account?
After a long dispute, AA, BB, and CC decided to liquidate their partnership. Their capital balances as of January 2, 2022 are as follows: AA, capital (25%) P750,000 BB, capital (40%) 900,000 CC, capital (35%) 560,000 The partnership’s total assets on this date include P250,000 cash and a receivable from AA amounting to P50,000 and noncash assets of a certain amount. Total liabilities to outside creditors, immediately before liquidation, are P640,000 and the partnership still owes CC an amount of P20,000. Liquidation expenses of P25,000 were paid during the liquidation proceedings. At the end of liquidation, BB received P575,000. How much were the non-cash assets sold for?
On September 15, 2021, LCM Partnership entered into liquidation. The partners' profit and loss ratios and capital balances on this date were as follows: L 25% 2,500,000.00 C 35% 5,400,000.00 M 40% 3,700,000.00 Total 11,600,000.00 The partnership has liabilities amounting to P 4,400,000, including a loan from C in the amount of P600,000. Cash on hand before starting the liquidation process is P 800,000. Non-cash assets amounting to P 7,400,000 were sold at book value and the remainder of the non-cash assets were sold at a loss of P 4,200,000. How much cash will be distributed to the partners?
After a long dispute, AA, BB, and CC decided to liquidate their partnership. Their capital balances as of January 2, 2022 are as follows: AA, capital (25%) P750,000 BB, capital (40%) 900,000 CC, capital (35%) 560,000 The partnership’s total assets on this date include P250,000 cash and a receivable from AA amounting to P50,000 and noncash assets of a certain amount. Total liabilities to outside creditors, immediately before liquidation, are P640,000 and the partnership still owes CC an amount of P20,000. Liquidation expenses of P25,000 were paid during the liquidation proceedings. At the end of liquidation, BB received P575,000. How much is the carrying amount of the non-cash assets, other than the receivable from AA, immediately before liquidation?
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On December 31 2021, the statement of financial position of ABC Partnership shows the following data with profit or loss sharing ratio of 2.3:5 Cash P15,000,000 Liabilities to others P20,000,000 Other non-cash asset 40,000,000 AA, Capital 15,000,000 BB, Capital 12,500,000 CC, Capital 7,500,000 On January 1, 2022, the partners decided to wind up the partnership affairs. During the winding up, liquidation expenses amounted to P2,000,000 were paid. Non-cash assets with book value of P30,000,000 were sold during January. 40% of total liabilities were also paid during January, P3,000,000 cash was withheld during January for future liquidation expenses. On January 31, 2022, partner AA received P10,000,000. How much is the proceeds from the sale of non-cash assets in January 2022?
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On June 30, 2009, the balance sheets of the partnership of AAA, BBB and CCC, together with their respective profit and loss ratios, were as follows: Assets, at cost P 180,000 AAA, loan P 9,000 AAA, capital (20%) 42,000 BBB. Capital (20%) 39,000 CCC , capital (60%) 90,000 Total P 180,000 AAA has decided to retire from the partnership. By mutual agreement, the…
On October 1, 2021, Galatians, Ephesians and Philippians who share earnings 5:3:2, respectively, decided to liquidate their partnership at which time their condensed balance sheet was as follows:Cash50,000Other Assets250,000Liabilities60,000Galatians, Capital80,000Ephesians, Capital90,000Philippians, Capital 70,000The first cash sale of assets booked at P150,000 resulted in net realization of P120,000. Half of the liabilities was paid. At this time, Ephesians received P48,000. How much is the restricted interest?
The following balance sheet accounts were taken from the partnership of MDL Co. on March 31, 2019: Cash-P500,000; Other Assets- P3,600,000; Liabilities-P1,040,000; Maria, Capital (40%)-P800,000; Demi, Capital (40%)-P1,300,000 and Liza, Capital (20%)-P960,000. The partnership was liquidated by installment. The proceeds from the first sale of non-cash assets with a book value of P1,800,000 amounted to P1,000,000. In the first month, P640,000 of the liabilities and P50,000 of unrecorded liabilities were paid. The partners also set aside P100,000 for future expenses. How much was received by partner Liza in the first distribution of cash? A.P0 B.P310,000 C.P200,000 D.P410,000
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3. As of January 1, 2018, the partnership of Canton, Yulls, and Garr had the following account balances and percentages for the sharing of profits and losses: Cash $ 80,000 Noncash assets 205,000 Liabilities 47,000 Canton, capital (30%) 138,000 Yulls, capital (40%) 119,500 Garr, capital (30%) (19,500) The partnership incurred losses in recent years and decided to liquidate. The liquidation expenses were expected to be S10,000. A. How much of the existing cash balance could be distributed safely to partners at this time? B. How much cash should Canton receive at this time, pursuant to a proposed schedule of liquidation?