kThe Pen, Evan, and Torves Partnership has asked you to assist in winding-up its business affairs. You compile the following information:1. The partnership's trial balance on June 30, 20X1, isCashAccounts Receivable (net)InventoryPlant and Equipment (net)Accounts PayablePen, CapitalEvan, CapitalTorves, CapitalTotalProfit and loss percentagesPreliquidation capital balancesLoss absorption potential (capital balances/loss percent)Decrease highest LAP to next highestDebit$ 7,80834,00024,80899,908Decrease LAPs to next highest:$ 164,9082. The partners share profits and losses as follows: Pen, 50 percent; Evan, 25 percent; and Torves, 25 percent.3. The partners are considering an offer of $110,000 for the firm's accounts receivable, inventory, and plant and equipment as of June30. The $110,000 will be paid to creditors and the partners in installments, the number and amounts of which are to be negotiated.Required:Prepare a cash distribution plan as of June 30, 20X1, showing how much cash each partner will receive if the partners accept the offerto sell the assets.Credit$ 10,40065,00055,50034,000$ 7,000PenPET PARTNER SHIPCash Distribution PlanJune 30, 20X1Loss Absorption PotentialEvanTorvesPenCapital AccountsEvanTorves

A cash distribution plan is the plan which is made by the company so that any loss can be made which…

Answered: Prepare a cash distribution plan as of…

Prepare a cash distribution plan as of June 30, 20X1, showing how much cash each partner will receive if the partners accept the offer to sell the assets.

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter23: Accounting For Partnerships

Section23.2: Distribution Of Net Income And Owners’ Equity Statements

Problem 1WT

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The Pen, Evan, and Torves Partnership has asked you to assist in winding-up its business affairs. You compile the following information: 1. The partnership's trial balance on June 30, 20X1, Is Cash Accounts Receivable (net) Inventory Plant and Equipment (net) Accounts Payable Pen, Capital Evan, Capital Torves, Capital Total Profit and loss percentages Preliquidation capital balances Loss absorption potential (capital balances / loss percent) Decrease highest LAP to next highest: Debit $ 6,800 30,000 22,000 99,700 Decrease LAPS to next highest: $ 158,500 2. The partners share profits and losses as follows: Pen, 50 percent; Evan, 30 percent; and Torves, 20 percent. 3. The partners are considering an offer of $108,000 for the firm's accounts receivable, Inventory, and plant and equipment as of June 30. The $108,000 will be paid to creditors and the partners in Installments, the number and amounts of which are to be negotiated. Required: Prepare a cash distribution plan as of June 30,…
The Pen, Evan, and Torves Partnership has asked you to assist in winding-up its business affairs. You compile the following information: 1. The partnership's trial balance on June 30, 20X1, is Cash Accounts Receivable (net) Inventory Plant and Equipment (net) Accounts Payable Pen, Capital Evan, Capital Torven, Capital Total Debit $ 7,200 38,000 27,000 98,400 Profit and loss percentages Preliquidation capital balances $170,600 2. The partners share profits and losses as follows: Pen, 50 percent; Evan, 25 percent; and Torves, 25 percent. 3. The partners are considering an offer of $112,000 for the firm's accounts receivable, inventory, and plant and equipment as of June 30. The $112,000 will be paid to creditors and the partners in installments, the number and amounts of which are to be negotiated. Decrease LAPs to next highest Credit Required: Prepare a cash distribution plan as of June 30, 20X1, showing how much cash each partner will receive if the partners accept the offer to sell…
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The following is the trail Balance of X and Y Co. as on March 31, 2021. The partners sharing profits and losses in the ratio 2:1. Prepare the Income Statement, Profit & Loss Appropriation A/c, Partners' Capital A/c and the Balance Sheet. Particulars Dr. Particulars Cr. 637500 X Capital A/c 191250 Y Capital A/c 85000 Sundry creditors 170000 Sales (net) 85000 Discount Land and Buildings 212500 Plant and Machinery 127500 Wages 106250 Opening Stock of Finished Goods 1381250 Opening Stock of Raw material 10625 Opening Stock of Work in Progress 76500 Provision for bad debts 6375 Sundry debtors 212500 Commission 42500 Carriage inwards 6375 Y's Loan A/c 127500 Carriage outwards 3825 Factory Expenses 31875 Royalties 6375 Purchase of Raw material (net) 318750 Factory rent & taxes 27625 Discount 12325 Office rent 17000 Insurance 8500 Bad debts 6375 Office Expenses 31875 Salaries of works manager 51000 Cash at bank 34850 2014500 2014500 The following additional information is to be taken into…
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The following information relates to partner for the year ended 29 February 2020: Current account credit balance on 29 February 2020 20 000 Profit share 50 000 Salaries 180 000 Interest on capital 24 000 Drawings 220 000 Interest on drawings 2 000 What is the balance in the Current account of the partner on 01 March 2019? OA. R12 000 DR. B. R116 00O DR OC. R52 000 CR D. R12 000 CR S Type here to search
On April 1, 2022, Guy Comeau and Amelie Lavoi formed a partnership in Ontario. Lavoi Comeau $304,000 cash $202,000 land $144,900 building Contribution Profit sharing Cash withdrawal March 20, 2023 a. Net Income during the year was $509,600 and was in the Income Summary account. On April 1, 2023 Travis Roberts invested $139,400 and was admitted to the partnership for a 20% interest in equity. Required: 1. Prepare journal entries for the following dates. April 1, 2022 View transaction list View transaction list Journal entry worksheet Record the formation of partnership. Note: Enter debits before credits. Date April 01, 2022 Debit Credit View general journal
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NOWV2 | Online teach X b My Questions | bartleby /ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=D&inprogress%=false E Calculator A summary of the liquidation process whereby cash is distributed to the partners based on the balances in their capital accounts. Statement of Partnership Liquidation After closing the accounts on July 1, prior to liquidating the partnership, the capital account balances of Gold, Porter, and Sims are $27,600, $39,300, and $17,400, respectively. noncash assets, and liabilities total $44,100, $72,900, and $32,700, respectively. Between July 1 and July 29, the noncash assets are sold for $58,500, the liabilities are paid, an- remaining cash is distributed to the partners. The partners share net income and loss in the ratio of 3:2:1. Prepare a statement of partnership liquidation for the period July 1-29. Enter any subtractions (balance deficiencies, payments, cash distributions, divisions of loss, sale of assets) negative…
Partnership A, B and C is a law firm. You have been engaged as accountant to prepare financial statements for the year ended Dec. 31, 2019 Partnerships profits are alllocated based fist on salaries,then on interest on opening capital balances then on fixed ratio. Salary allocation amount are A $100000 B $100000 C $160000 Opening capital balances A $70000 B $60000 C $70000 Interest rate is: 5% Fixed ratio is A 3 B 2 C 5 required Prepare year end adjusting entries Allocate partnership profit or loss to each partner Prepare adjusting entry and complete trial balnce Prepare income statement and statement of partners capital for the year ended Dec. 31, 2019 and a balance sheet for Dec.31
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