A03 Principles of Accounting II

Directions:Be sure to save an electronic copy of your answer before submitting it to Ashworth College for grading. Unless otherwise stated, answer in complete sentences, and be sure to use correct English, spelling and grammar. Sources must be cited in APA format. Your response should be four (4) double-spaced pages; refer to the "Assignment Format" page located on the Course Home page for specific format requirements.

Part A (15 points each for a possible total of 30 points)

1.After several years of business, Abel, Barney, and Cole are liquidating. The following are post-closing account balances.

Cash18,000

Inventory73,000

Other assets157,000

Accounts Payable61,000

Abel, Capital50,000

Barney, Capital50,000

Cole, Capital87,000

Non-cash assets are sold for $275,000. Profits and losses are shared equally.

After all liabilities are paid, divide the remaining cash amongst the partners.

2.The partnership of Brandon and Ryan is being liquidated. All gains and losses are shared in a 3:1 ratio, respectively. Before liquidation, their balance sheet balances are as follows:

Cash$10,000

Other Assets8,000

Liabilities4,000

Brandon, Capital 7,000

Ryan, Capital7,000

a.If the Other Assets are sold for $10,000, how much will each partner receive before paying liabilities and distributing the remaining assets?

b.If the Other Assets are sold for $8,000, how much will each partner receive before paying liabilities and distributing remaining assets?