2. Prepare the liquidation entries (sale of equipment, allocation of gain/loss, payment of creditors, final distribution of cash).View transaction listJournal entry worksheet123 4Record the sale of equipment.Note: Enter debits before credits.DateGeneral JournalDebitCreditJan 01, 2021Record entryClear entryView general journal Exercise 11-14 Liquidation of a partnership LO5David Wallace, Olena Dunn, and Danny Lin were partners in a commercial architect firm and showed the following account balances asof December 31, 2020:Accum.DavidOlenaDannyDeprec.Equipment Equipment Payable$90,000Wallace,Capital$32,000Lin,Capital$13,000AccountsNotesDunn,Capital$15,000CashPayable$13,000Account balances December 31, 2020$15,100$155,000$7,100Due to several unprofitable periods, the partners decided to liquidate the partnership. The equipment was sold for $57,000 on January1, 2021. The partners share any profit (loss) in the ratio of 2:1:1 for Wallace, Dunn, and Lin, respectively.Required:1. Complete the schedule. (Negative answers should be indicated by a minus sign.)Аccum.DavidOlenaDannyLin,CapitalAccountsNotesCashEquipmentDeprec.EquipmentWallace,СapitalDunn,CapitalPayablePayableAccount balances December 31, 2020$ 15,100155,000$90,000$7,100$ 13,00032,000$15,000 $13,000Sale of equipmentBalancePayment of liabilitiesBalance

Liquidation of Partnership - Liquidation of partnership is the process of selling all the assets…

Exercise 11-14 Liquidation of a partnership LO5 David Wallace, Olena Dunn, and Danny Lin were partners in a commercial architect firm and showed the following account balances as of December 31, 2020: Accum. David Olena Deprec. Equipment Equipment Payable $90,000 Wallace, Capital $32,000 Dunn, Capital $15,000 Danny Lin, Capital $13,000 Accounts Notes Cash $7,100 Payable $13,000 Account balances December 31, 2020 $15,100 $155,000 Due to several unprofitable periods, the partners decided to liquidate the partnership. The equipment was sold for $57,000 on January 1, 2021. The partners share any profit (loss) in the ratio of 2:1:1 for Wallace, Dunn, and Lin, respectively. Required: 1. Complete the schedule. (Negative answers should be indicated by a minus sign.) Accum. Deprec. Equipment Danny Lin, Capital David Olena Accounts Notes Cash Equipment Wallace, Capital Dunn, Capital Payable Payable Account balances Dec 31, 2020 $ 15,100 155,000 $ 90,000 7,100 $ 13,000 2$ 32,000 15,000 $ 13,000 Sale of equipment Balance Payment of liabilities Balance

Exercise 11-14 Liquidation of a partnership LO5 David Wallace, Olena Dunn, and Danny Lin were partners in a commercial architect firm and showed the following account balances as of December 31, 2020: Accum. David Olena Deprec. Equipment Equipment Payable $90,000 Wallace, Capital $32,000 Dunn, Capital $15,000 Danny Lin, Capital $13,000 Accounts Notes Cash $7,100 Payable $13,000 Account balances December 31, 2020 $15,100 $155,000 Due to several unprofitable periods, the partners decided to liquidate the partnership. The equipment was sold for $57,000 on January 1, 2021. The partners share any profit (loss) in the ratio of 2:1:1 for Wallace, Dunn, and Lin, respectively. Required: 1. Complete the schedule. (Negative answers should be indicated by a minus sign.) Accum. Deprec. Equipment Danny Lin, Capital David Olena Accounts Notes Cash Equipment Wallace, Capital Dunn, Capital Payable Payable Account balances Dec 31, 2020 $ 15,100 155,000 $ 90,000 7,100 $ 13,000 2$ 32,000 15,000 $ 13,000 Sale of equipment Balance Payment of liabilities Balance

Accounting (Text Only)

26th Edition

ISBN:9781285743615

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter12: Accounting For Partnerships And Limited Liability Companies

Section: Chapter Questions

Problem 12.3APE

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Question 6 For the year 2021, the partnership of AMMAR and BANU realized a net profit of P240,000. The capital accounts of the partners show the following postings: Jan. 1 May 1 July 1 Aug. 1 Oct. 1 AMMAR Debit Credit Debit Credit 20,000 10,000 120,000 BANU 10,000 10,000 5,000 80,000 20,000
Problem 1 D, E, and F are partners with a profit and loss ratio of 5:4:1, respectively. The partnership is to be liquidated. Prior to the liquidation, the statement of financial position shows the following balances P 80,000 720,000 P 80,000 320,000 240,000 160,000 Cash Liabilities Other Assets D, Capital E, Capital F, Capital After realization, E received P120,000 as settlement of his interest. 1. How much was the loss on the sale of assets? 2. How much did F receive in final settlement of his interest? 3. What amount of total cash was distributed to the partners?
Problem #16 Installment Liquidation: Schedule of Safe Payments The statement of financial position for Paraiso and Ligeralde Partnership on June 1, 2019 before liquidation is as follows: Assets Liabilities & Capital P 50,000 550,000 Cash Liabilities P 200,000 Other Assets Paraiso, capital Ligeralde, capital Total Liabilities & Capital 225,000 175,000 P 600,000 Total Assets P 600,000 Partners Paraiso and Ligeralde share profits and losses 60:40, respectively. In June, assets with a book value of P220,000 were sold for P180,000, creditors were paid in full, and P20,000 was paid to partners. In July, assets with book value of P100,000 were sold for P120,000, liquidation expenses of P5,000 were paid and cash of P125,000 was paid to partners. In August, the remaining assets were sold for P225,000. Required: 1. How much cash should Ligeralde receive in June? 2. How much cash should Paraiso receive in July? 3. How much cash should Ligeralde and Paraiso receive in August?
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Required information Problem 12-3A (Algo) Allocating partnership income LO P2 [The following information applies to the questions displayed below.] Ries, Bax, and Thomas invested $58,000, $74,000, and $82,000, respectively, in a partnership. During its first calendar year, the firm earned $361,500. Required: Prepare the entry to close the firm's Income Summary account as of its December 31 year-end and to allocate the $361,500 net income under each of the following separate assumptions. Problem 12-3A (Algo) Part 1 1. The partners did not agree on a plan, and therefore share income equally. View transaction list Journal entry worksheet 1 Record the entry to close the income summary account assuming the partners did not agree on a plan, and therefore share income equally. Note: Enter debits before credits. Date December 31 Record entry General Journal Clear entry Debit Credit View general journal
Required information Problem 12-3A (Algo) Allocating partnership income LO P2 [The following information applies to the questions displayed below] Ries, Bax, and Thomas invested $56,000, $72,000, and $80,000, respectively, in a partnership. During its first calendar year, the firm earned $430,200. Required: Prepare the entry to close the firm's Income Summary account as of its December 31 year-end and to allocate the $430,200 net income under each of the following separate assumptions. Problem 12-3A (Algo) Part 3 3. The partners agreed to share income and loss by providing annual salary allowances of $40,000 to Ries, $35,000 to Bax, and $47,000 to Thomas, granting 10% interest on the partners' beginning capital investments; and sharing the remainder equally. Complete this question by entering your answers in the tabs below. Appropriation of profits General Journal Allocate $430,200 net indome by providing annual salary allowances of $40,000 to Ries, $35,000 to Bax, and $47,000 to…
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PROBLEM 2- 15 JM COBIEW A and B Partnership's statement of financial position as of December 31, 2020 reported the following: Total assets P100,000 Total liabilities AA, capital BB, capital 08 20,000 00,0a 40,000 40,000 qulenohs t otat nssbA imbe o se On January 3, 2021, AA and BB dissolved their partnership and transferred all assets and liabilities to a newly-formed corporation. At the date of incorporation, the fair value of the net assets was P12,000 more than the carrying amount on the partnership's books. AA and BB were each issued 5,000 shares of the corporation's P1 par value ordinary share. 00.021 How much is the share premium upon incorporationm?
Homework Activity 1 A, B and C are in Partnership sharing profits and losses in the ratio of 2:1:1. During the year ending 31st Dec 2019, the business made a profit of RO 64,000 before providing Interest on capital : A 2,000, B 1500, C 1000 Interest on drawings: A 200, B 150, C 100 Salary to Partners A 500 B 700 C 600 Commission to Partners A 200 B 300 C 400 Prepare a profit and loss appropriation account to show the distribution of profit among the partners.
Problem 12-6A (Algo) Liquidation of a partnership LO P5 Kendra, Cogley, and Mei share income and loss in a 3:2:1 ratio (in ratio form: Kendra, 3/6; Cogley, 2/6; and Mei, 1/6). The partners have decided to liquidate their partnership. On the day of liquidation, their balance sheet appears as follows. Balance Sheet Accounts payable Kendra, Capital Cogley, Capital Mei, Capital Total assets $ 623,500 Total liabilities and equity Assets Cash Inventory $ 75,700 547,800 Liabilities Required: For each of the following scenarios, complete the schedule allocating the gain or loss on the sale of inventory. Prepare journal entries to record the below transactions. Note: Do not round intermediate calculations. Enter losses and partner deficits, if any, as negative amounts. 1. Inventory is sold for $606,600. 2. Inventory is sold for $475,800. 3. Inventory is sold for $348,000 and partners with deficits pay their deficits in cash. 4. Inventory is sold for $271,200 and partners with deficits do not…