Answered: Cash Other assets. Liabilities.. Playa,…

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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Question

A partnership has the following balance sheet prior to liquidation (partners’ profit and loss ratios are in parentheses):

During liquidation, other assets are sold for $80,000, liabilities are paid in full, and $15,000 in liquidation expenses are paid. What amount of cash does each partner receive as a result of this liquidation?

Playa, $6,000; Bahia, $4,500; Arco, $4,500.
Playa, $10,000; Bahia, $18,500; Arco, $19,500.
Playa, $16,000; Bahia, $23,000; Arco, $24,000.
Playa, $19,200; Bahia, $14,400; Arco, $14,400.

Cash
Other assets.
Liabilities..
Playa, capital (40%)
Bahia, capital (30%).
Arco, capital (30%)
$ 50,000
24,000
29,000
30,000
100,000
Total
$133,000
Total.
$133,000

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