Question
1.) AA and BB share earnings in a 60:40 ratio. They have decided to liquidate their partnership. A portion of the assets has been sold
1.) AA and BB share earnings in a 60:40 ratio. They have decided to liquidate their partnership. A portion of the assets has been sold but other assets with a carrying amount of P62,000 still must be realized. All liabilities have been paid, and cash of P28,000 is available for distribution to partners. The capital accounts show balances of P90,000 for AA and P55,000 for BB. How much of the available cash for distribution should be given to AA?*
2.) When JJ and BB, partners who share earnings 60:40, were severely injured in an accident, a liquidator was appointed to wind up their business. The accounts showed cash, P90,000; other assets, P235,000; liabilities, P45,000; JJ's capital, Pl26,000; and BB's capital, PI54,000. The expenses of liquidating the business (advertising, rent, travel, etc.) are estimated at P25,000. How much cash can be distributed safely at this point?
3.) On December 18, 2020, ABC Corporation issued 5,250 ordinary shares, par P30 for P58 per share. At what amount will shareholders' equity increase upon issuance?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started