ive have a solution sheet, but i just want to ask where does number 216700come from? thanks
Required 1. Prepare a summary of liquidation transactions (as illustrated in Exhibits 12-5 or 12-6) for each of the following situations: The noncash assets are sold for $145,200. a. b. The noncash assets are sold for $110,400. 31. 2. What legal recourse do the remaining partners have to be reimbursed for deficit Dec. balances? 2016 Jun 7 Problem 12-8B Steven Hodgson and Sarah Asham have agreed to pool their assets and form a partnership to be called H&A Distributors. They agree to share all profits equally and make the following initial investments: 2014 ners' invest- profits and the admis- er; account- drawal of a partnership alance sheet Dec. 31 Jun. 10 2017 Jan. 3 Asham Hodgson $21,000 42,000 $36,000 21,000 Cash. Accounts receivable (net) 27,000 48.000 Office furniture (net). Dec. 2015 Jan. 31 The partnership's reported net income was $228,000 For the year. Hodgson and Asham agree to accept Myra Sirroca into the partnership with a $210,000 investment for 40 percent of the business. The partnership agreement is amended to provide for the foltowing sharing of profits and losses: Asham Sirroca Hodgson $90,000 $80,000 $120,000 Service Interest on end-of-period 10 % 10% capitial balance Balance in ratio of 10% Dione ar 2: 3: Require The partnership's reported net income is $570,000. Dec. 31 2016 CHA Hodgson withdrew $90,000 cash from the partnership and Asham withdrew $60,000 (Sirroca did not make any withdrawals). Oct. 10 Dec. 31 /The partnership's reported net income is $225,000. Proble 2017 Nancy busines increase Jan. After a disagreement as to the direction in which the partnership should b moving, Sirroca decided to withdraw from the partnership. The three partners 2 counting for Partnerships and Corporate Transactions agreed that Sirroca could take cash of $510,000 in exchange for her equity in the partnership. Required 1. Journalize all of the transactions for the partnership. 2. Prepare the partners' equity section of the balance sheet as of January 2, 2017. Problem 12-9B William Dione, Julie Porter, and Regina Westlake started a partnership to operate a courier service. The partnership (DP&W Couriers) had the following transactions: Accoun ments; losses; admissi 2015 Jan. 2 accoun Dione, Porter, and Westlake formed the partnership by signing an agreement a partn n 2.2-5 ratin and h malina the Transaction Total Date 2014 Jun. 10 Dec. 31 $195,000 228,000 Description Sirroca Hodgson $111,000 114.000 Asham S 84.000 114.000 Start-up Net income Capital account balances 423,000 198,000 225,000 2015 Jan. 01 210.000 New partner Capital account balances Net income, allocated as Service Interest Balance Total income allocated 253,200 253.200 (21.600) 203.400 (21,600) 176.400 633,000 Dec. 31 290,000 63,300 80,000 25,320 108,350 213.670 120,000 20,340 43,340 183.680 90,000 17.640 65.010 (216.700 570:000 172.650 Capital account balances 1,203,000 387,080 466,870 349,050 2016 Oct. 10 Withdrawals Capital account balances (150,000) 1,053,000 (90,000) 297,080 (60,000) 289,050 466,870 Dec. 31 Net income Service 120,000 29,708 (34,060) 115.648 90,000 28,905 (51,090) 67,815 356,865 Interest Balance 290.000 105,300 (170,300) 225,000 1,278,000 80,000 46,687 (85,150) 41,537 508,407 Total Income Allocated Capital account balances 2017 412.728 Jan. 02 Partner withdrawal Capital account balances (637) $412.091 Payment of $510,000 is first allocated to the account of Sirroca. The difference of $1,593 ($510,000- (956) $ 355.909 (508.407) (510,000) $768.000 $508,909) is split between the remaining partners. Hodgson: $1,593 x 2/5 = $637 Asham: $1,593 x 3/5 $956
