The partners in Newman Company decide to liquidate the firm when the balance sheet shows the following.
Question:
The partners share income and loss 5:3:2. During the process of liquidation, the transactions below were completed in the following sequence.
1. A total of $55,000 was received from converting noncash assets into cash.
2. Gain or loss on realization was allocated to partners.
3. Liabilities were paid in full.
4. Cash was paid to the partners with credit balances.
Instructions
(a) Prepare a schedule of cash payments.
(b) Prepare the entries to record the transactions.
(c) Post to the cash and capitalaccounts.
Transcribed Image Text:
NEWMAN COMPANY Balance Sheet April 30, 2014 Assets Liabilities and Owners' Equity Cash Accounts receivable Allowance for doubtful accounts Inventory Equipment Accumulated depreciation-equipment 30,000 Notes payable 25,000 Accounts payable (2,000) 35,000 Mallory, capital 20,000 Bosco, capital (8,000) 20,000 30,000 2,500 28,000 13,650 5,850 100,000 Salaries and wages payable Renteria, capital $100,000
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 61% (13 reviews)
a NEWMAN COMPANY Schedule of Cash Payments Item Cash Noncash Assets Liabilities Mallory Capital Bosc...View the full answer
Answered By
Ali Khawaja
my expertise are as follows: financial accounting : - journal entries - financial statements including balance sheet, profit & loss account, cash flow statement & statement of changes in equity -consolidated statement of financial position. -ratio analysis -depreciation methods -accounting concepts -understanding and application of all international financial reporting standards (ifrs) -international accounting standards (ias) -etc business analysis : -business strategy -strategic choices -business processes -e-business -e-marketing -project management -finance -hrm financial management : -project appraisal -capital budgeting -net present value (npv) -internal rate of return (irr) -net present value(npv) -payback period -strategic position -strategic choices -information technology -project management -finance -human resource management auditing: -internal audit -external audit -substantive procedures -analytic procedures -designing and assessment of internal controls -developing the flow charts & data flow diagrams -audit reports -engagement letter -materiality economics: -micro -macro -game theory -econometric -mathematical application in economics -empirical macroeconomics -international trade -international political economy -monetary theory and policy -public economics ,business law, and all regarding commerce
4.00+
1+ Reviews
10+ Question Solved
Related Book For
Accounting Principles
ISBN: 9781118566671
11th Edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
Question Posted:
Students also viewed these Accounting questions
-
The partners in Tallis Company decide to liquidate the firm when the balance sheet shows the following. The partners share income and loss 5 : 3 : 2. During the process of liquidation, the...
-
The partners in RSP Company decide to liquidate the firm when the statement of financial position shows the following. The partners share income and loss 5:3:2. During the process of liquidation, the...
-
The partners in Crawford Company decide to liquidate the firm when the balance sheet shows the following. The partners share income and loss 5:3:2. During the process of liquidation, the following...
-
In Exercises 1-2, the augmented matrix of a linear system has been reduced by row operations to the form shown. In each case, continue the appropriate row operations and describe the solution set of...
-
A weak acid HA (pKa 5.00) was titrated with 1.00 M KOH. The acid solution had a volume of 100.0 mL and a molarity of 0.100 M. Find the pH at the following volumes of base added and make a graph of pH...
-
Calculate the solubilities of AgIO 3 and La(IO 3 ) 3 from their solubility product constants.
-
The following data were obtained from the year-end financial statements of The Arcadia Company: Required Compute the following ratios for The Arcadia Company: (1) Return on Sales, (2) Return on...
-
Nimoy Company makes three models of phasers. Information on the three products is given below. Fixed expenses consist of $300,000 of common costs allocated to the three products based on relative...
-
The mean weight gain for women during a full-term pregnancy is 30.2 pounds. The standard deviation of weight gain for this group is 9.9 pounds, and the shape of the distribution of the weight gains...
-
Sarah and Gabe are considering the following transactions and have asked you to explain the impact of the transactions on their Statement of Financial Position: Purchase a baseball card collection...
-
At the end of its first year of operations on December 31, 2014, RKC Companys accounts show the following. The capital balance represents each partners initial capital investment. Therefore, net...
-
At April 30, partners capital balances in YBG Company are: Younger $30,000, Beyer $16,000, and Giger $10,000. The income-sharing ratios are 5:3:2, respectively. On May 1, the YBGE Company is formed...
-
Roughly 70% of the 5 10 14 m 2 of Earths surface is covered by oceans. How much energy would it take to melt enough of the ice in Greenland and Antarctica to raise sea levels 1 meter? Suppose that...
-
Find f'(x) and f'(c). Function f(x) = (x5+ 5x)(2x5 + 2x - 4) Value of c C = 0 f'(x) = f'(c) =
-
Colour operations are, for the most part, point operations. We saw in Assignment 1 that we can use look-up tables to speed up these operations, especially where we might have to perform many complex,...
-
Write a MATLAB code to plot the response x(t). Plot from 0 to 3 seconds. Include a copy of the code and the plot. x(1)=0.5e 1(1) + (1-e)(1)-(1-)1(1-1) NOTE: Units are x(t)[in] and t sec. IMPORTANT:...
-
A put option on a stock has an exercise price of $35. If the stock price at expiration is $30, what is the option payoff per share for the seller of the option?
-
A ball is dropped onto a horizontal pavement from a height of 3m. How high will the ball bounce if the coefficient of restitution is 0.2? How high does it bounce the second time? A snooker ball of...
-
Why is selection bias such an important issue in measuring HMO performance?
-
Let (X. A. p) be a measure space. Show that for any A,B A, we have the equality: (AUB)+(An B) = (A) + (B).
-
Let a series RLC network be connected to a source voltage \(V\), drawing a current \(I\). (a) In terms of the load impedance \(Z=Z ot Z\), find expressions for \(\mathrm{P}\) and \(\mathrm{Q}\), from...
-
Manufacturing cost data for Orlando Company, which uses a job order cost system, are presented below. Instructions Indicate the missing amount for each letter. Assume that in all cases manufacturing...
-
Agassi Company uses a job order cost system in each of its three manufacturing departments. Manufacturing overhead is applied to jobs on the basis of direct labor cost in Department D, direct labor...
-
(a) What steps are involved in developing an activity-based costing system? (b) What are the benefits of ABC?
-
What is the expected return based on the table below? Outcome Probability Return Recession 40% -35% Expansion 25% 20% Boom 35% 55%
-
A Treasury bond with 10 years to maturity is currently quoted at 114:10. The bond has a coupon rate of 10.3 percent. What is the yield value of a 32nd for this bond? Note: Do not round intermediate...
-
Crystal Electronics is a mid-sized electronics manufacturer located in Johannesburg. The company CEO inherited the company. When it was started 70 years ago, the company originally repaired radios...
Study smarter with the SolutionInn App