Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Need parts A-D please. thanks Following is a series of independent cases. In each situation, indicate the cash distribution to be made to partners at

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedNeed parts A-D please. thanks

Following is a series of independent cases. In each situation, 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. Part A The Buarque, Monte, and Vinicius partnership reports the following accounts. Vinicius is personally insolvent and can contribute only an additional $22,000 to the partnership. Cash Liabilities Monte, loan Buarque, capital (50% of profits and losses) Monte, capital (25%) Vinicius, capital (25%) $143,000 48,000 46,000 24,000 53,000 (28,000) (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 $ 33,000 18,000 176,000 Liabilities Langston, loan Drawdy, capital (40%) Langston, capital (30%) Pearl, capital (30) Total liabilities and capital $ 41,500 26,000 78,000 63,000 18,500 $227,000 Total assets $227,000 The firm sells the noncash assets for $133,000; it will use $28,000 of this amount to pay liquidation expenses. All three of these partners are personally insolvent. Part C Drawdy, Langston, and Pearl operate a local accounting firm as a partnership. After working together for several years, they have decided to liquidate the partnerships property. The partners have prepared the following balance sheet: Cash Drawdy, loan Noncash assets $ 33,000 18,000 176,000 Liabilities Langston, loan Drawdy, capital Langston, capital Pearl, capital Total liabilities and capital $ 41,500 26,000 78,000 63,000 18,500 $227,000 Total assets $227,000 The firm sells the noncash assets for $133,000; it will use $19,000 of this amount to pay liquidation expenses. All three of these partners are personally insolvent. Assume that the profits and losses are split 2:4:4 to Drawdy, Langston, and Pearl, respectively. Part D Following the liquidation of all noncash assets, the partnership of Krups, Lindau, Riedel, and Schnee has the following account balances. Krups is personally insolvent. Liabilities Krups, loan Krups, capital (30% of profits and losses) Lindau, capital (30%) Riedel, capital (20%) Schnee, capital (20%) $ 9,000 19,000 (46,000) deficit (43,000) deficit 28,000 33,000 Required A Required B Required C Required D Indicate the cash distribution to be made to partners at the end of the liquidation that all solvent partners will reimburse the partnership for their deficit capital bal Buarque, Capital Monte, Loan and Capital Vinicius, Capital Beginning balances Contribution by Vinicius Capital balances Elimination of Vinicius's deficit Final distribution 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 reimburse the partnership for their deficit capital balances. (Do not round intermediate calculations. Round the final answers to nearest dollar amounts.) Drawdy, Loan and Capital Langston, Loan and Capital Pearl, Capital Beginning balances Loss on disposal Liquidation expenses Capital balances Allocation of Pearl's deficit Final distribution 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 and Capital Langston, Loan and Capital Pearl, Capital Beginning balances Loss on disposal Liquidation expenses Capital balances Allocation of Pearl's deficit balance Final distribution 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 answer to nearest dollar amounts.) Krups, Loan and Capital Lindau, Capital Riedel, Capital Schnee, Capital Beginning balances Allocation of Krups's deficit balance Capital balances Contribution by Lindau Final distribution

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

Strategic Pricing And Management Accounting

Authors: David Dugdale

1st Edition

78-1032224824, 1032224827

More Books

Students also viewed these Accounting questions