{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-28T05:36:40-04:00", "answer_date": "2024-06-28 05:36:40", "is_docs_available": null, "is_excel_available": null, "is_pdf_available": null, "count_file_available": 0, "main_page": "student_question_view", "question_id": "4246495", "url": "\/study-help\/questions\/1the-partnership-of-mick-keith-and-charlie-has-been-dissolved-4246495", "question_creation_date_js": "2024-06-28T05:36:40-04:00", "question_creation_date": "Jun 28, 2024 05:36 AM", "meta_title": "[Solved] 1.The partnership of Mick, Keith, and Cha | SolutionInn", "meta_description": "Answer of - 1.The partnership of Mick, Keith, and Charlie has been dissolved and is in the process of liquidation. On July 1, 20x4 | SolutionInn", "meta_keywords": "1,partnership,mick,keith,charlie,dissolved,process,liquidation,july,20x4,second,cash", "question_title_h1": "1.The partnership of Mick, Keith, and Charlie has been dissolved and is in the process of liquidation. On July 1, 20x4, just before the second", "question_title": "1.The partnership of Mick, Keith, and Charlie has been dissolved and is", "question_title_for_js_snippet": "1 The partnership of Mick, Keith, and Charlie has been dissolved and is in the process of liquidation On July 1, 20x4, just before the second cash distribution, the assets and equities of the partnership along with residual profit sharing ratios were as follows Assets Liabilities and Equity Cash 200,000 Liabilities 150,000 Receivables Net 50,000 Mick, Capital 50 100,000 Inventories 150,000 Keith, Capital 30 175,000 Equipment net 100,000 Charlie, Capital 20 75,000 Total Assets 500,000 Total Liabilities and Equity 500,000 Assume that the available cash is distributed immediately, except for a P25,000 contingency fund that is withheld pending complete liquidation of the partnership How much cash should be paid to Mick 2 The partnership agreement of JJ, KK, and LL provides for the annual allocation of the business's profit or loss in the following sequence JJ, the managing partner, receives a bonus equal to 20 percent of the business's profit Each partner receives 15 percent interest on average capital investment Any residual profit or loss is divided equally The average capital investments for 20x4 were as follows JJ, P100,000 KK, P200,000, and LL, P300,000 How much of the P90,000 partnership profit for 20x4 should be assigned to JJ 3 On September 30,20x4, LL admits MM for an interest in his business On this date, LL's capital account shows a balance of P158,400 The following were agreed upon before the formation of the partnership a Prepaid expenses of P17,500 and accrued expenses of P5,000 are to be recognize b 5 of the outstanding accounts receivable of Lopez amounting to P100,000 is to be recognized as uncollectible c MM is to be credited with a one third interest in the partnership and is to invest cash aside from the P50,000 worth of merchandise The total capital of the partnership is ", "question_description": "

1.The partnership of Mick, Keith, and Charlie has been dissolved and is in the process of liquidation. On July 1, 20x4, just before the second cash distribution, the assets and equities of the partnership along with residual profit sharing ratios were as follows:<\/p>

<\/p>

Assets Liabilities and Equity<\/p>

Cash . . . . . . . . . . . . . . . . .200,000 Liabilities . . . . . . . . . . . . . . . . . . .150,000<\/p>

Receivables Net . . . . . . . 50,000 Mick, Capital 50% . . . . . . . . . . . 100,000<\/p>

Inventories . . . . . . . . . . . .150,000 Keith, Capital 30% . . . . . . . . . . .175,000<\/p>

Equipment-net . . . . . . . . 100,000 Charlie, Capital 20% . . . . . . . . .75,000<\/p>

Total Assets . . . . . . . .500,000 Total Liabilities and Equity . .500,000<\/p>

<\/p>

Assume that the available cash is distributed immediately, except for a P25,000 contingency fund that is withheld pending complete liquidation of the partnership. How much cash should be paid to Mick?<\/p>

<\/p>

2.The partnership agreement of JJ, KK, and LL provides for the annual allocation of the business's profit or loss in the following sequence: <\/p>

<\/p>

JJ, the managing partner, receives a bonus equal to 20 percent of the business's profit.<\/p>

Each partner receives 15 percent interest on average capital investment.<\/p>

Any residual profit or loss is divided equally. <\/p>

<\/p>

The average capital investments for 20x4 were as follows: JJ, P100,000; KK, P200,000, and LL, P300,000. How much of the P90,000 partnership profit for 20x4 should be assigned to JJ?<\/p>

<\/p>

3.On September 30,20x4, LL admits MM for an interest in his business. On this date, LL's capital account shows a balance of P158,400. The following were agreed upon before the formation of the partnership:<\/p>

<\/p>

a. Prepaid expenses of P17,500 and accrued expenses of P5,000 are to be recognize<\/p>

b. 5% of the outstanding accounts receivable of Lopez amounting to P100,000 is to be <\/p>

recognized as uncollectible. <\/p>

c. MM is to be credited with a one-third interest in the partnership and is to invest cash aside <\/p>

from the P50,000 worth of merchandise.<\/p>

<\/p>

The total capital of the partnership is:<\/p>", "transcribed_text": "", "related_book": { "title": "Entrepreneurial Finance", "isbn": "1305968352, 978-1337635653, 978-1305968356", "edition": "6th edition", "authors": "J. Chris Leach, Ronald W. Melicher", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/1482.jpg", "uri": "\/textbooks\/entrepreneurial-finance-6th-edition-1482", "see_more_uri": "" }, "free_related_book": { "isbn": "0578960850", "uri": "\/textbooks\/the-six-secrets-of-success-on-shopify-learn-how-to-build-your-own-profitable-side-business-1st-edition-978-0578960852-270108", "name": "The Six Secrets Of Success On Shopify Learn How To Build Your Own Profitable Side Business", "edition": "1st Edition" }, "question_posted": "2024-06-28 05:36:40", "see_more_questions_link": "\/study-help\/questions\/business-corporate-finance-2020-July-01", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/after-contemplating-the-caseload-question-see-previous-problem-the-director", "description": "After contemplating the caseload question (see previous problem), the director of social services has decided that reasonable caseload probabilities are .10 for moderate, .30 for high, and .60 for...", "stars": 3 }, { "url": "\/study-help\/biostatistics\/what-is-the-confidence-level-associated-with-a-confidence-interval-1981038", "description": "What is the confidence level associated with a confidence interval?", "stars": 3 }, { "url": "\/chance-company-had-two-operating-divisions-one-manufacturing-farm-equipment", "description": "Chance Company had two operating divisions, one manufacturing farm equipment and the other office supplies. Both divisions are considered separate components as defined by generally accepted...", "stars": 3 }, { "url": "\/study-help\/questions\/harmon-is-30-years-old-he-is-a-new-client-9853920", "description": "Harmon is 30 years old. He is a new client who comes to you because he received a Form W-2. He earned $8,500. He has never filed a tax return because his wages have always been paid in cash. Which of...", "stars": 3 }, { "url": "\/study-help\/questions\/stuart-pointers-corporation-expects-to-begin-operations-on-january-1-2446353", "description": "Stuart Pointers Corporation expects to begin operations on January 1 , year 1 ; it will operate as a specialty sales company that sells laser pointers over the Internet. Stuart expects sales in...", "stars": 3 }, { "url": "\/study-help\/questions\/because-you-a-construction-management-graduate-the-chief-estimator-of-1005368", "description": "Because you a Construction Management graduate, the Chief Estimator of your firm requested that you should use CSI format to analyze the estimate. Under CSI format, please explain \"General...", "stars": 3 }, { "url": "\/study-help\/questions\/long-answer-question-identify-and-explain-in-detail-two-examples-1005887", "description": "Long answer question Identify and explain in detail TWO examples of Standard Operating Procedures that hospitality service businesses might want to have in order to comply with laws. This can relate...", "stars": 3 }, { "url": "\/study-help\/questions\/how-can-a-team-that-has-members-spread-out-in-1006104", "description": "How can a team that has members spread out in different locations (working virtual) communicate effectively?", "stars": 3 }, { "url": "\/study-help\/questions\/brookingdale-insurance-company-has-expressed-interest-in-being-represented-by-1007456", "description": "Brookingdale Insurance Company has expressed interest in being represented by Roger's insurance agency. For each of the following items of information about Brookingdale, describe the sources of...", "stars": 3 }, { "url": "\/study-help\/questions\/how-might-the-current-economic-situation-with-the-job-market-1007937", "description": "How might the current economic situation with the job market, wage rate, or other economic factor impact your organization in a positive or negative sense?", "stars": 3 } ], "next_back_navigation": { "previous": "\/study-help\/questions\/in-the-planning-stage-of-an-audit-auditors-frequently-consider-4246494", "next": "\/study-help\/questions\/accounting-for-cash-surrender-value-elysse-company-reported-the-following-4246496" }, "breadcrumbs": [ { "name": "Study help", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers" }, { "name": "Business", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers\/business" }, { "name": "Accounting", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/business-accounting" }, { "name": "1.The partnership of Mick, Keith, and Charlie has been dissolved and is", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/1the-partnership-of-mick-keith-and-charlie-has-been-dissolved-4246495" } ], "skill_details": { "skill_id": "9", "skill_name": "Accounting", "parent_id": "1" } }" } }