Answers
A) PREPARE PREDISTRIBUTION PLAN FOR THIS PARTNERSHIP.
capital balances
| cash | non cash assets | liabilities | frick 60% | wilson 20% | clarke 20% | |
| account balances | 51,000 | 1,83,000 | (37,000) | (1,05,000) | (29,000) | (63,000) |
| LOSS OF 183000 distributed in profit sharing ratio for partners | (183,000) | 109800 | 36,600 | 36,600 | ||
| balance before distribution of losses | 51000 | 0 | (37000) | 4800 | 7600 | (26,400) |
| payment of liabilities | (37000) | 37000 | ||||
| balance after paying liabilities | 14000 | 0 | 0 | 4800 | 7600 | (26,400) |
| distributing negative cash of partners | 14000 | 0 | 0 | (4800) | (7600) | 12400 |
| balance | 14000 | 0 | 0 | 0 | 0 | (14000) |
| payment to partners having debit balnce | 14000 | 0 | 0 | 0 | 0 | 14000 |
| balance | 0 | 0 | 0 | 0 | 0 | 0 |
b) PRODUCE FINAL STATMENT OF LIQUIDATION FOR THE PARTNERSHIP USING PREDISTRIBUTION PLAN.
capital balances
| cash | non cash assets | liabilities | frick 60% | wilson 20% | clarke 20% | |
| account balances | 51,000 | 1,83,000 | (37,000) | (1,05,000) | (29,000) | (63,000) |
| distribution of loss on sale of asset (82,000-51000) | 51000 | (82000) | 18600 | 6200 | 6200 | |
| balance | 102000 | 1,01,000 | (37000) | (86400) | (22,800) | (56,800) |
| payment of liabilities | (37000) | 37000 | ||||
| balance | 65000 | 1,01,000 | 0 | (86,400) | (22,800) | (56,800) |
| distribution of cash | (65000) | 39000 | 13000 | 13000 | ||
| balance | 0 | 1,01,000 | (47,400) | (9800) | (43800) | |
| distribution of loss on sale of remaining non cash asset (1,01,000-45000) | 45000 | (1,01,000) | 33600 | 11200 | 11200 | |
| balance | 45000 | 0 | (13,800) | 1400 | (32600) | |
| payment of liquidation expenses | (8000) | 4800 | 1600 | 1600 | ||
| balance | 37000 | (9000) | 3000 | (31000) | ||
| distribution of negative balance | 1500 | (3000) | 1500 | |||
| balance | 37000 | (7500) | 0 | (29500) | ||
| cash left is paid to partners in profit sharing ratio | (37000) | 7500 | 29500 |
c) JOURNAL ENTRIES TO RECORD LIQUIDATION TRANSACTIONS.
| DEBIT | CREDIT | |
| CASH A/C LOSS ON SALE TO NON CASH ASSET A/C (SALE OF NON CASH ASSET) | 51000 31000 | 82000 |
| FRICK CAPITAL A/C DR WILSON CAPITAL A/C DR CLARKE CAPITAL A/C DR TO LOSS (BEING LOSS ON SALE OF ASSET DISTRIBUTED TO PARTNERS) | 18,600 6200 6200 | 31000 |
| LIABILITIES A/C DR TO CASH A/C (BEING PAYMENT OF LIABILITIES) | 37000 | 37000 |
| FRICK CAPITAL A/C DR WILSON CAPITAL A/C DR CLARKE CAPITAL A/C DR TO CASH (BEING PAYMENT OF CASH TO PARTNERS) | 39000 13000 13000 | 65000 |
| CASH A/C LOSS ON SALE TO NON CASH ASSET A/C (SALE OF NON CASH ASSET) | 45000 56000 | 101000 |
| FRICK CAPITAL A/C DR WILSON CAPITAL A/C DR CLARKE CAPITAL A/C DR TO LOSS (BEING DISTRIBUTE LOSS ON SALE OF NON CASH ASSET) | 33600 11200 11200 | 56000 |
| LIQUIDATION EXPENSE A/C TO FRICK A/C TO WILSON A/C TO CLARKE A/C (BEING LIQUIDATION EXPENSE PAID) | 4800 1600 1600 | 8000 |
| FRICK CAPITAL A/C DR CLARKE CAPITAL A/C DR TO WILSON A/C ( BEING NEGATIVE AMOUNT DISTRIBUTED) | 1500 1500 | 3000 |
| FRICK CAPITAL A/C DR CLARKE CAPITAL A/C DR TO CASH CASH PAID TO PARTENERS | 7500 29500 | 37000 |
Similar Solved Questions
1 answer
Estimate the crystal field stabilization energy for the octahedral ion hexacyanocobaltate(III), if the wavelength of maximum...
Estimate the crystal field stabilization energy for the octahedral ion hexacyanocobaltate(III), if the wavelength of maximum absorption for the ion is 309 nm. [Note: This is a high-field (low-spin) complex.] kJ mol-1...
1 answer
Phoenix Company can invest in each of three cheese-making projects: C1, C2, and C3. Each project...
Phoenix Company can invest in each of three cheese-making projects: C1, C2, and C3. Each project requires an initial investment of $258,000 and would yield the following annual cash flows. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Year 1 Yea...
1 answer
A large plate is balanced at its center and two students of equal mass stand at...
A large plate is balanced at its center and two students of equal mass stand at its center. The plate is rotated on a frictionless pivot about an axis through its center and perpendicular to its face. The students then begin to walk out towards opposite edges. (Select T-True, F-False, I-Increases, D...
1 answer
I need help to paraphrase these paragraphs: Corporate Bureaucracy: The communication which is been forwarded or communicated...
I need help to paraphrase these paragraphs: Corporate Bureaucracy: The communication which is been forwarded or communicated is incomplete and to a certain level of people in the management, rest all leave in the thought how they want to take it, it’s nothing more than rumor, so the comm...
1 answer
Based on the facts in the case of TAP pharam, and what you have learned in Chapter 9, ...
Based on the facts in the case of TAP pharam, and what you have learned in Chapter 9, evaluate the culture change effort that Douglas Durand undertook. What cultural systems did he target in the culture change effort? What systems were missing, if any?...
1 answer
Chapter 12 w Preparation of Alcohols and Reactions with Alcohols Determine the products of the following...
Chapter 12 w Preparation of Alcohols and Reactions with Alcohols Determine the products of the following reactions. Be sure to remember to designate when different stereoisomers and different constitutional isomers have been created by the reaction of applicable, please indicate the major product. I...
1 answer
Consider the circuit diagram below used to monitor the output of a pressure transducer using a...
Consider the circuit diagram below used to monitor the output of a pressure transducer using a data acquistion card. In this configuration a change in pressure applied ot the pressure transducer is converted into a change in voltage (vout) which is then measured by the DAQ. Pressure is converted to ...
1 answer
Post Laboratory Questions 1. Write the equation for the decomposition of sulfurous acid. Usingl 2. Using...
Post Laboratory Questions 1. Write the equation for the decomposition of sulfurous acid. Usingl 2. Using the three criteria for double displacement reactions, and the solubility table. predict whether a double displacement reaction will occur for each of the following. If the reaction will occur, ba...
1 answer
-2 puits Sat 30.023. student stands at the edge of 8 tliff and thro s stone...
-2 puits Sat 30.023. student stands at the edge of 8 tliff and thro s stone horizontally over the edge ith speed or w 16.0 m/s The diff is 59.0 m above a flat, horizontal teach as s hown in theTigure. a What are the coorcinats of the i nitial pocitien o the storc? b) What are the componcnts of the i...
1 answer
Answer and show your solution Accounting for Partnership Liquidation chapter 323 INAME: Score PROFESSOR m 6-27...
Answer and show your solution Accounting for Partnership Liquidation chapter 323 INAME: Score PROFESSOR m 6-27 Section Date Multiple Choice: Installment Liquidation t los sour computation o truction: Encircle the letter corresponding to the best answ n a separate paper pata for questiona 1 to 3 ...
1 answer
What are the top ten countries from which migrants are leaving? To which countries are they...
What are the top ten countries from which migrants are leaving? To which countries are they arriving? Consider what dynamics affect this movement. Explain....
1 answer
Mechanics of Materials Problem 4. (20 points) σ(ksi) material A 100 material B 90 60 material...
Mechanics of Materials Problem 4. (20 points) σ(ksi) material A 100 material B 90 60 material C 40 01 .015 .02 05 06 what is the value of the modulus of elasticity for material B? What is the value of the yield stress for material A? What is the value of the ultimate tensile strength for mate...
1 answer
Exercise 9-3 Sales on store credit card LO C1 Z-Mart uses the perpetual inventory system and...
Exercise 9-3 Sales on store credit card LO C1 Z-Mart uses the perpetual inventory system and allows customers to use the Z-Mart store credit card in charging purchases. Z-Ma assesses a per-month interest fee for any unpaid balance on its store credit card at each month-end. Apr. 30 Z-Mart sold merch...
1 answer
One common assumption in economics is that the products of different firms in the same industry are indistinguishable
One common assumption in economics is that the products of different firms in the same industry are indistinguishable. For each of the following industries, discuss whether this is a reasonable assumption.a. steelb. novelsc. wheatd. fast food...
1 answer
Help! The accompanying equency distribution represents the square footage of a random sample of 500 houses...
help! The accompanying equency distribution represents the square footage of a random sample of 500 houses that are owner occupied year round Approximate the mean and standard deviation square footage IT Click the icon to view the data table The mean square footage is x = 2.462 (Round to the near...
1 answer
3-1 Calculate the effective stress at points c and d in the example problem of Fig....
3-1 Calculate the effective stress at points c and d in the example problem of Fig. 53-1 (e = 0.7). Change the water height in the tube from 6 m to 3 m. (G = 2.65) Figure 53-1 ---LV ---WATER DRAIN 12 m. Water -- SCREEN --SCREEN, DATUM Example Problem following table. Find the pressure head at point ...
1 answer
Geary Machine Shop is considering a four-year project to improve its production efficiency. Buying a new...
Geary Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $595,200 is estimated to result in $198,400 in annual pretax cost savings. The press falls in the MACRS five-year class (MACRS Table), and it will have a salvage value at the en...