Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Following is a series of independent cases. In each situation, indicate the cash distribution to be made to partners at the end of the Aquidation

image text in transcribed
image text in transcribed
image text in transcribed
Following is a series of independent cases. In each situation, indicate the cash distribution to be made to partners at the end of the Aquidation process. Unless otherwise stated, assume that all solvent partners will reimburse the partnership for their deficit capital balances Part A The Buarque Monte, and Vinicius partnership reports the following accounts. Vinicius is personally insolvent and can contribute only an additional $28,000 to the partnership. Cash Liabilities Monte, loan Buarque, capital (50% of profits and losses) Monte, capital (258) Vinicius, capital (256) $149,000 54,000 58,000 34,000 37,000 (34,000) (deficit) Part B Drawdy, Langston, and Pearl operate a local accounting firm as a partnership. After working together for several years, they have decided to liquidate the partnership's property. The partners have prepared the following balance sheet: Cash Drawdy, loan Noncash assets $ 39,000 24,000 188,000 Liabilities Langston, loan Drawdy, capital (404) Langston, capital (304) Pearl, capital (309) Total liabilities and capital $ 47,500 29,000 84,000 69,000 21.500 $251,000 Total assets $251,000 The firm sells the noncash assets for $139,000; it will use $34,000 of this amount to pay liquidation expenses. All three of these partners are personally insolvent Required A Required B Required c Required D Indicate the cash distribution to be made to partners at the end of the liquidation process. Unless otherwise stated, assume that all solvent partners will remburse the partnership for their deficit capital balances. Buarque, Capital Monte, Loan and Capital Vinicius, Capital Beginning balances Contribution by Vinicius Capital balances Elimination of Vinicius's deficit Final distribution $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Required Required B > Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Indicate the cash distribution to be made to partners at the end of the liquidation process. Unless otherwise stated, assume that all solvent partners will reimburse the partnership for their deficit capital balances. (Do not round Intermediate calculations. Round the final answers to nearest dollar amounts.) Drawdy, Loan Langston, Pearl and Capital Loan and Capital Capital Beginning balances Loss on disposal Liquidation expenses Capital balances $ $ 0 $ Allocation of Pearl's deficit Final distribution $ 0 $ 0 $ 0 0 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Internal Control A Managers Journey

Authors: K. H. Spencer Pickett

1st Edition

0471402508, 978-0471402503

More Books

Students also viewed these Accounting questions