The partnership of Kylie, Bamboo and Tank is being liquidated. The summarized balance sheetbelow depicts their financial position before liquidation:CashLoans to TankOther non-cash assetsP30,00070,000600,000The other non-cash assets were sold at P400,000.1. The excess cash distributed to Kylie is P40,000A. TrueB. FalseAccounts payables PKylie, loanKylie, capital (40%)Bambo, capital (20%)Tank, capital (40%)2. The excess cash distributed to Tank is P110,000A. TrueB. False3. The ending balance of non-cash assets after liquidation is P200,000A. TrueB. False280,00030,00090,000150,000150,000

Partnership means where two or more person comes together to form the business and share profit and…

Answered: The partnership of Kylie, Bamboo and…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A. After all the non-cash assets have been converted into cash in the liquidation of Sun and Star Partnership, the ledger contains the following account balances: Cash - P141,000; Accounts Payable - P 96,000; Sun, Loan - P 45,000; Sun, Capital -(P21,000); Star, Capital - P21,000. How much is the final settlement to Sun assuming cash of P 96,000 is paid to Accounts Payable? B. Using data above, how much is the final settlement to Star? *
After all the non-cash assets have been converted into cash in the liquidation of Sun and Star Partnership, the ledger contains the following account balances: Cash-P141,000: Accounts Payable - P 96,000; Sun, Loan - P 45,000: Sun, Capital -(P21.000); Star, Capital - P21,000. How much is the final settlement to Sun assuming cash of P 96,000 is paid to Accounts Payable?
Non-Cash Assets recorded in the accounting records as $30 sold for $50 during the liquidation process. Consider the following: Easy, Capital Balance $12 Peasy, Capital Balance $13 Gains and Losses are divided equally. How would the partners' capital balances be affected by the sale of the non-cash assets? Group of answer choices a. Peasy's balance would increase by $10 . b. Peasy's balance would decrease by $10 . c. Peasy's balance would increase by $13. d. Peasy's balance would decrease by $13.
After all the non-cash assets have been converted into cash in the liquidation of Sun and Star Partnership, the ledger contains the following account balances: Cash - P141,000; Accounts Payable - P 96,000; Sun, Loan - P 45,000; Sun, Capital -(P21,000); Star, Capital - P21,000. How much is the final settlement to Sun assuming cash of P 96,000 is paid to Accounts Payable? how much is the final settlement to Star?
The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: Cash Noncash assets Req A1 a-1. Determine the maximum loss that can be absorbed in Step 1. Then, assuming that this loss has been incurred, determine the next maximum loss that can be absorbed in Step 2. a-2. Liquidation expenses are estimated to be $19,000. Prepare a predistribution schedule to guide the distribution of cash. Further, modify the tags in explanation as well. b. Assume that assets costing $78,000 are sold for $62,000. How is the available cash to be divided? Complete this question by entering your answers in the tabs below. Step 1 $ 40,000 224,000 Partner Capital Balance Drysdale Koufax Marichal Determine the maximum loss that can be absorbed in Step 1. Then, assuming that this loss has been incurred, determine the next maximum loss that can be absorbed in Step 2. Step 2 Liabilities Drysdale, loan Drysdale, capital (50%) Koufax, capital (30%) Marichal,…
In liquidation, balances prior to the distribution of cash to the partners are: Cash $755000; James, Capital $410000; Laney, Capital $380000, and Howell, Capital $35000 deficiency. The income ratio is 6:2:2, respectively. How much cash should be distributed to Laney if Howell does not pay his deficiency? O $357000 O $346250 O $371250 O $380000
In liquidation, balances prior to the distribution of cash to the partners are: Cash P255,000; Moore, Capital P140,000; Simon, Capital P130,000, and Kelly, Capital P30,000. The income ratio is 6:2:2, respectively. How much cash should be distributed to Simon if Kelly does not pay his deficiency? -P122,500 -P130,000 -P126,250 -P118,750 the Following are classified under PPE Except? -Building -Land -Machinery -All are PPE Which of the following is considered as a Cash Equivalent? -Check -Postal money Order -Treasury Bill Issued 5 Months Ago , Acquired and Maturing 4 months from now -Treasury Bill Issued 1 year ago Acquired and Maturing 3 months from now
In liquidation, balances prior to the distribution of cash to the partners are: Cash $239000; Mark, Capital $112400; Stengel, Capital $103400, and King, Capital $23200. The income ratio is 6:2:2, respectively. How much cash should be distributed to Mark? ○ $100400 ○ $103400 ○ $112400 ○ $119500
The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: $ 52,000 284,000 $ 59,000 Cash Liabilities Noncash assets Drysdale, loan Drysdale, capital (50%) Koufax, capital (30%) Marichal, capital (20%) 25,000 94,000 84,000 74,000 a-1. Determine the maximum loss that can be absorbed in Step 1. Then, assuming that this loss has been incurred, determine the next maximum loss that can be absorbed in Step 2. a-2. Liquidation expenses are estimated to be $12,000. Prepare a predistribution schedule to guide the distribution of cash. Further, modify the tags in explanation as well. b. Assume that assets costing $90,000 are sold for $68,000. How is the available cash to be divided? Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B Determine the maximum loss that can be absorbed in Step 1. Then, assuming that this loss has been incurred, determine the next maximum loss that can be absorbed in Step 2.…
The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: Cash Noncash assets $ 41,000 229,000 Liabilities Drysdale, loan Drysdale, capital (50%) Koufax, capital (30%) Marichal, capital (20%) $46,500 21,000 77,500 67,500 57,500 a-1. Determine the maximum loss that can be absorbed in Step 1. Then, assuming that this loss has been incurred, determine the next maximum loss that can be absorbed in Step 2. a-2. Liquidation expenses are estimated to be $20,000. Prepare a predistribution schedule to guide the distribution of cash. Further, modify the tags in explanation as well. b. Assume that assets costing $79,000 are sold for $62,500. How is the available cash to be divided?
In liquidation, balances prior to the distribution of cash to the partners are: Cash $898000; Thomas, Capital $420000; Laney, Capital $400000, and Howell, Capital $78000. The income ratio is 6:2:2, respectively. How much cash should be distributed to Thomas? O $410250 O $381000 O $420000 O $446000
Were sold for P200,000. PROBLEM 2 The partnership of Jay Saberon and Ariane Lopez is going to be dissolved and liquidated. Their liability and capital account balances are as follows: Accounts Payable P 20,000 J, Saberon, Loan P 5,000 J. Saberon, Capital P 8,000 A. Lopez, Capital P 25,000 Their bank pass book shows a deposit under their business name of P3,000 which reconciles with the ledger balance. All non-cash assets were sold for P40,000. The partners share profit and loss on the ratio 4:1. Required: 1. Prepare the Statement of Partnership Liquidation. 2. Prepare jounal entries pertinent to the liquidalion process.

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS