Select the correct answer for each of the following questions.
1. On January 1, 20X7, the partners of Casey, Dithers, and Edwards, who share profits and losses in the ratio of 5:3:2, decided to liquidate their partnership. On this date, its condensed balance sheet was as follows:

On January 15, 20X7, the first cash sale of other assets with a carrying amount of $150,000 realized $120,000. Safe installment payments to the partners were made on the same date. How much cash should be distributed to each partner?

2. In a partnership liquidation, the final cash distribution to the partners should be made in accordance with the
a. Partners' profit and loss-sharing ratio.
b. Balances of the partners' capital accounts.
c. Ratio of the capital contributions by the partners.
d. Ratio of capital contributions less withdrawals by the partners.
The balance sheet for the Art, Blythe, and Cooper Partnership is as follows. Figures shown parenthetically reflect agreed profit and loss-sharing percentages.

3. If the firm, as shown on the balance sheet, is dissolved and liquidated by selling assets in installments and if the first sale of noncash assets having a book value of $90,000 realizes $50,000 and all cash available after settlement with creditors is distributed, the respective partners would receive (to the nearest dollar)

4. If the facts are as in question 3 except that $3,000 cash is to be withheld, the respective partners would then receive (to the nearest dollar)

5. If each partner properly received some cash in the distribution after the second sale, if the cash to be distributed amounts to $12,000 from the third sale, and if unsold assets with an $8,000 book value remain, ignoring questions 3 and 4, the respective partners would receive

6. The following condensed balance sheet is for the partnership of Arnie, Bart, and Kurt, who share profits and losses in the ratio of 4:3:3, respectively:

The partners agreed to dissolve the partnership after selling the other assets for $200,000. On dissolution of the partnership, Arnie should receive
a. $0.
b. $40,000.
c. $60,000.
d.$70,000.

Transcribed Image Text:

Assets Liabilities and Capital Cash Other Assets 250,000 Casey, Capital S 60,000 80,000 90,000 70,000 $300,000 $50,000 Liabilities Dithers, Capital Edwards, Capital Total $300,000 Total Casey Dithers Edwards a. $15,000 $51,000 $44,000 b. $40,000 $45,000 $35,000 c. $55,000 $33,000 $22,000 d. $60,000 $36,000 $24,000 Assets Liabilities and Capital 20,000 Liabilities 180,000 50,000 37,000 65,000 48,000 $200,000 Cash Other Assets Art, Capital (40%) Blythe, Capital (40%) Cooper, Capital (20%) Total $200,000 Total Artlythe Cooper a. $8,000 8,000 4,000 b. $6,667 6,667 S6,666 C. $ 0 $13,333 $6,667 d. 0 3,000 $17,000 Art Blythe Cooper a. $6,800 6,800 3,400 b. $5,667 5,667 5,666 C 0 $11,333 5,667 d. 0 1,000 $16,000 Art Blythe Cooper a. 4,800 4,800 2,400 b. 4,000 4,000 4,000 с.37/150 65/1 50 48/1 50 of of 0 of $12,000 $12,000 $12,000 d $ 0 8,000 4,000 Assets Liabilities and Capital $150,000 40,000 180,000 30,000 $100,000 Liabilities Cash Other Assets 300,000 Arnie, Capital Bart, Capital Kurt, Capital Total 400,000 Total