Question
1, Kimberly and Cynthia have partnership capital account balances of $180000 and $140000 respectively and share profits and losses equally. Brenda is admitted to the
1,
Kimberly and Cynthia have partnership capital account balances of $180000 and $140000 respectively and share profits and losses equally. Brenda is admitted to the partnership by investing $76000 for a one-fourth ownership interest. The balance of Cynthia's capital account after Brenda is admitted is
$185750.
$157000.
$128500.
$151500.
2,
The partners' profit and loss sharing ratio is 2:3:5, respectively.
| C, S, AND B PARTNERSHIP Balance Sheet December 31, 2021 | |||||
| Assets | Liabilities and Partners' Equity | ||||
| Cash | $34000 | Liabilities | $40400 | ||
| Equipment | 93900 | C, Capital | 29800 | ||
| Accum.dep.equipment | (16000) | S, Capital | 25600 | ||
| B, Capital | 16100 | ||||
| Total | $111900 | Total | $111900 | ||
If the C, S, and B Partnership is liquidated by selling the equipment for $46000 and creditors are paid in full, what is the amount of cash that can be safely distributed to each partner?
C, $8080; S, $12120; B, $20200
C, $9200; S, $13800; B, $23000
C, $29800; S, $25600; B, $16100
C, $23420; S, $16030; B, $150
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Interpreting and Analyzing Financial Statements
Authors: Karen P. Schoenebeck, Mark P. Holtzman
6th edition
132746247, 978-0132746243
