Item No. 25 is based on the following information:Christian and Dior are partners, who share profits equally, wereincapacitated due to a car accident. A liquidator was appointed to wind up theirpartnership. The balance sheet accounts are shown below:P 35,000CashOther AssetsLiabilities110,000Christian Capital --Dior CapitalP 19,00072,00054,000The liquidator anticipates that considerable time would be required todispose all the assets. Liquidation expenses are estimated to be P 10,000.25. At this time, the amounts of cash to be distributed safely to each partnerare:a.Christian, P 5,000; Dior, P 1,000.b. Christian, P 6,000; Dior, P 0.Christian, P 15,000; Dior, P O.C.d. Christian, P 15,000; Dior, P 1,000.170-!

Cash available after expenses and payments = P35,000 - P19,000 - P10,000 = P6,000 Capital after…

Christian and Dior are partners, who share profits equally, were incapacitated due to a car accident. A liquidator was appointed to wind up their partnership. The balance sheet accounts are shown below: Cash P 35,000 Liabilities P 19,000 Other Assets 110,000 72,000 Christian Capital --- Dior Capital --- 54,000 The liquidator anticipates that considerable time would be required to dispose all the assets. Liquidation expenses are estimated to be P 10,000. 25. At this time, the amounts of cash to be distributed safely to each partner are: a. Christian, P 5,000; Dior, P 1,000. b. Christian, P 6,000; Dior, P 0. C. Christian, P 15,000; Dior, P 0. 000 Pior, P 1,000.

Christian and Dior are partners, who share profits equally, were incapacitated due to a car accident. A liquidator was appointed to wind up their partnership. The balance sheet accounts are shown below: Cash P 35,000 Liabilities P 19,000 Other Assets 110,000 72,000 Christian Capital --- Dior Capital --- 54,000 The liquidator anticipates that considerable time would be required to dispose all the assets. Liquidation expenses are estimated to be P 10,000. 25. At this time, the amounts of cash to be distributed safely to each partner are: a. Christian, P 5,000; Dior, P 1,000. b. Christian, P 6,000; Dior, P 0. C. Christian, P 15,000; Dior, P 0. 000 Pior, P 1,000.

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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Christian and Dior are partners, who share profits equally, were incapacitated due to a car accident. A liquidator was appointed to wind up their partnership. The balance sheet accounts are shown below: Cash P 35,000 P 19,000 Other Assets 110,000 Liabilities Christian Capital- Dior Capital 72,000 54,000 The liquidator anticipates that considerable time would be required to dispose all the assets. Liquidation expenses are estimated to be P 10,000. 25. At this time, the amounts of cash to be distributed safely to each partner are: a. Christian, P 5,000; Dior, P 1,000. b. Christian, P 6,000; Dior, P 0. C. Christian, P 15,000; Dior, PO. d. Christian, P 15,000; Dior, P 1,000.
The partnership of Kylie, Bamboo and Tank is being liquidated. The summarized balance sheet below depicts their financial position before liquidation: Cash Loans to Tank Other non-cash assets P 30,000 70,000 600,000 The other non-cash assets were sold at P400,000. 1. The excess cash distributed to Kylie is P40,000 A. True B. False Accounts payables P Kylie, loan Kylie, capital (40%) Bambo, capital (20%) Tank, capital (40%) 2. The excess cash distributed to Tank is P110,000 A. True B. False 3. The ending balance of non-cash assets after liquidation is P200,000 A. True B. False 280,000 30,000 90,000 150,000 150,000
1. Mary, Helga, and Luz are partners who share profits and losses in the ratio of 4 2 2, respectively. The partners decide to liquidate and gave you the following balances EXERCISES P400,000 200,000 800,000 700,000 (100,000) Cash Accounts Receivables P300,000 400,000 700,000 400,000 200,000 Accounts Receivable were sold for P175,000 b) Inventories were sold for P820,000 a Equipment were sold for P550,000 and d) Liquidation expenses of P12,000 were paid. Accounts Payable Notes Payable Mary, Capital Helga, Capital Luz, Capital Inventories Equipment Accumulated Depreciation Direction: a) Use the following table in support of the liquidation process. The cash balance after the payment of liabilities should reconcile with the capital balances. Capital Balances Mary Cash Helga Luz Balances before liquidation Sale of receivables at a loss Sale of inventories at a gain Sale of equipment at a loss Liquidation expenses paid Liabilities paid Distribution to partners 400,000 700,000 400,000…
1. Mary, Helga and Luz are partners who share profits and losses in the ratio of 4:2:2, respectively. The partners decide to liquidate and gave you the following balances: Cash P400,000 Accounts Payable P300,000 Accounts 200,000 Notes Payable 400,000 Receivables Mary, Capital Helga, Capital Luz, Capital Inventories 800,000 700.000 Equipment 700,000 400,000 Accumulated (100,000) 200,000 Depreciation a. Accounts Receivable were sold for P175,000 b. Inventories were sold for P820,000 c. Equipment were sold for P550,000 d. Liquidation expenses of P12,000 were paid Direction: A. Use the following table in support of the liquidation process. The cash balance after the payment of liabilities should reconcile with the capital balances. Capital Balances Mary P400,000 P700,000 P400,000 P200,000 Cash Helga Luz | Balances befor liquidation Sale of receivables at a loss Sale of inventories at a gain Sale of equipment at a loss Liquidation expenses paid Liabilities paid Distribution to partners B.…
Carmelo Fernandez and Bobby Morett formed a partnership, investing $67,500 and $202,500, respectively. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet Determine their participation in the year's net income of $275,000 under each of the following independent assumptions: a. No agreement concerning division of net income. b. Divided in the ratio of original capital investment. c. Interest at the rate of 6% allowed on original investments and the remainder divided in the ratio of 2:3. d. Salary allowances of $40,000 and $49,000, respectively, and the balance divided equally. e. Allowance of interest at the rate of 6% on original investments, salary allowances of $40,000 and $ 49,000, respectively, and the remainder divided equally.
Hewitt and Patel are partners, sharing gains and losses equally. They decide to terminate their partnership. Prior to realization, their capital balances are $6,000 and $4,000, respectively. After all noncash assets are sold and all liabilities are paid, there is a cash balance of $8,000. Question Content Area a. What is the amount of a gain or loss on realization? $fill in the blank a082cef9b012fe9_2 Question Content Area b. How should the gain or loss be divided between Hewitt and Patel? Hewitt $fill in the blank fe57f5f50043050_2 Patel $fill in the blank fe57f5f50043050_4 Question Content Area c. How should the cash be divided between Hewitt and Patel? If an amount is zero, enter "0". blankHewitt and PatelDistribution of Cash Hewitt Patel Capital balances before realization $fill in the blank 2e3dfe08df82014_1 $fill in the blank 2e3dfe08df82014_2 Division of gain or loss on realization fill in the blank…
Ana, Bea, and Cara are partners sharing profits and losses in the ratio of 1:1:2, respectively. They decided to liquidate the business. The assets were sold and liabilities amounting to $20,000 were paid. At this point, the capital balances of the partners are as follows: Ana $20,000 credit Bea 15,000 debit Cara 30,000 credit Bea is personally insolvent. 1. How much cash is available for distribution to partners? 2. How much cash is received by Ana and Cara?
Items 34 and 35 are based on the following information: On January 2,2010, Jason and Melissa formed a partnership by contributing the following assets: Cash Accounts Receivable Merchandise Inventory Land Building Jason P ? 80,000 100,000 Melissa 34. On January 2, 2010, Melissa, Capital amounts to a. P440,000 b. P600,000 P 380,000 240,000 The Land invested by Melissa is subject to mortgage loan of P160,000, which is to be assumed by the partnership. The accounts receivable invested by Jayson are believed to be only 90% collectible. d. P1,040,000 35. Assuming that Jayson is to contribute enough cash to bring his capital equal to that of Melissa, required cash contribution of Jayson is a. P268,000 b. P420,000 d. P600,000 c. P760,000 c. P440,000
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1.A and B formed a partnership. The following are their contributions: A B Cash 500,000 Accounts receivable 100,000 Building Total 700,000 600,000 700,000 A, capital B, capital Total 600,000 700,000 600,000 700,000 Additional information: The accounts receivable includes a P20,000 account that is deemed uncollectible. The building is over-depreciated by P50,000. The building has an unpaid mortgage P100,000, which is assumed by the partnership. Requirement: Provide the journal entry to record the contributions of the partners in the partnership books.
Roberto Orcajada and Ryan Morales are partners who share profits and losses equally. The credit balances of their Capital accounts before liquidation are P700,000 and P900,000, respectively. ... They sold all the noncash assets and paid all the partnership's liabilities, leaving a balance of P1,100,000 in cash. How much cash should be distributed to Roberto?
Jake desires to invest P 200,000 for X capital and profit and loss interest in the partnership of Kim and Lim, who at that time had capital balances of P 200,000 and P300,000, respectively. Profit and loss ratio of the partners before the admission was 6:4. If a positive asset revaluation is to be recorded, what are the capital balances of Kim, Lim and Jake? Kim Lim Jake