On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership. The following information was made available: Cash 80,000 Accounts receivable 240,000 Inventory 480,000 Equipment 1,200,000 Total 2,000,000 Accounts payable 120,000 Payable to B 80,000 A, Capital (20%) 400,000 B, Capital (30%) 600,000 C, Capital (50%) 800,000 Total 2,000,000 Information on the conversion of non-cash assets is as follows: 40,000 was collected on accounts receivable; the balance is uncollectible. 20,000 was received for the entire inventory. The equipment was sold for 200,000. 8,000 liquidation expenses were paid. 108,000 was paid to outside creditors, after offset of a 12,000 credit memorandum received on January 2, 20x1. All of the partners are personally solvent. How much did B receive from the settlement of his interest in the partnership?

A and B decided to liquidate their partnership. The partnership's records show the following information: Cash - Non-cash assets 80,000 Total assets 80,000 Liabilities 15,000 Loan payable to Partner A 10,000 Loan payable to Partner B 17,000 A, capital (80%) 20,000 B, capital (20%) 18,000 Total liabilities and equity 80,000 The non-cash assets are to be sold in installments and the partners' claims are to be settled as cash becomes available. In the first sale, half of the non-cash assets were sold for 15,000. How much did A and B receive in the first cash distribution?

A and B decided to liquidate their partnership. The partnership's records show the following information: Cash - Non-cash assets 80,000 Total assets 80,000 Liabilities 15,000 Loan payable to Partner A 10,000 Loan payable to Partner B 17,000 A, capital (80%) 20,000 B, capital (20%) 18,000 Total liabilities and equity 80,000 The non-cash assets are to be sold in installments and the partners' claims are to be settled as cash becomes available.

In the first sale, half of the non-cash assets were sold for 15,000. How much did A and B receive in the first cash distribution?

The capital account balances of the partners in ABC Partnership on June 30, 20x1 before any necessary adjustments are as follows: Capital accounts A, Capital (20%) 600,000 B, Capital (30%) 1,000,000 C, Capital (50%) 400,000 Total 2,000,000 The partnership reported profit of 3,600,000 for the six months ended June 30, 20x1.

On July 1, 20x1, C withdraws from the partnership when he was bought-out by his co- partners for 2,480,000 cash. How much is the capital balance of A immediately after the withdrawal of C?

.C retires on July 1, 20x1. It was agreed that C shall receive 2,480,000 cash from the partnership in settlement of his interest. How much is the capital balance of B right after the withdrawal of C?

C retires on July 1, 20x1. It was agreed that C shall receive cash of 2,000,000 and equipment with carrying amount of 400,000 and fair value of 1,200,000 as settlement of his interest in the partnership. The entry in the partnership's books to record the retirement of C includes?

On January 1, 20x1, the partners of ABC Partnership decided to admit other investors. As a result, the partnership was converted to a corporation. Relevant information follows: Carrying amounts Fair values Cash 20,000 20,000 Receivables 60,000 40,000 Inventory 80,000 70,000 Equipment 540,000 670,000 Payables 50,000 50,000 A, Capital (20%) 150,000 N/A B, Capital (30%) 200,000 N/A C, Capital (50%) 300,000 N/A The corporation has an authorized capitalization of 2,000,000 divided into 200,000 ordinary shares with par value of 10 per share. Shares were issued to the former partners based on their respective adjusted capital balances. How many shares did A receive?

1. On April 30, 20x1, A, B and C formed a partnership. A contributed cash of 50,000. B contributed property with 36,000 carrying amount, 40,000 original cost and 80,000 fair value. The partnership accepted responsibility for the 35,000 mortgage attached to the property. C contributed equipment with 30,000 carrying amount, 75,000 original cost and 55,000 fair value. The partnership agreement specifies that profits and losses are to be shared equally but is silent regarding capital contributions. Which partner has the smallest April 30, 20x1 capital account balance?

2. A and B formed a partnership. The following are their contributions: A B Cash 200,000 - Accounts receivable 150,000 - Inventory 100,000 - Land 500,000 Building 620,000 Total 450,000 1,120,000 Note payable 220,000 A, capital 230,000 B, capital 1,120,000 Total 450,000 1,120,000 Additional information: The accounts receivable has a recoverable amount of 120,000. The inventory has an estimated selling price of 110,000 and estimated costs to sell of 20,000. The land has a fair value of 500,000 an unpaid mortgage of 120,000. The partners agreed that B shall settle the mortgage using his personal funds. The building is over-depreciated by 30,000. The building also has an unpaid mortgage amounting to 550,000. The partners agreed that the partnership shall assume repayment of the mortgage. The note payable has a fair value of 210,000. A and B shall share in profits and losses 40% and 60%, respectively. How much are the adjusted capital balances of A and B, respectively?

3. A and B agreed to form a partnership. A shall contribute 60,000 cash while B shall contribute 120,000 cash. However due to the expertise that A will be bringing to the partnership, the partners agreed that they should initially have an equal interest in the partnership capital. Under the bonus method, how much is the adjusted capital balance of B immediately after the formation of the partnership?

4. A, B and C formed a partnership. Their contributions are as follows: A B C Cash 50,000 40,000 140,000 Equipment 150,000 Totals 50,000 190,000 140,000 Additional information: Although C has contributed the most cash to the partnership, he did not have the full amount of 140,000 available and was forced to borrow 40,000. The partners agreed that half of the amount borrowed shall be assumed by the partnership. The equipment contributed by B has an unpaid mortgage of 20,000, the repayment of which is not assumed by the partnership. The partners agreed to equalize their interests. Cash settlements among the partners are to be made outside the partnership. Which partner(s) shall receive cash payment from the other partner(s)?

5. A and B agreed to form a partnership. The partnership agreement stipulates the following: Initial capital of 300,000. A 25:75 interest in the equity of the partnership. A contributed 100,000 cash, while B contributed 200,000 cash. Which partner should provide additional investment (or withdraw part of his investment) in order to bring the partners' capital credits equal to their respective interests in the equity of the partnership?

6. A and B formed a partnership on March 1, 20x1. The partnership agreement stipulates the following: Monthly salary allowances of 10,000 for A and 6,000 for B. Salary allowances are to be withdrawn by the partners throughout the period and are to be debited to their respective drawings accounts. The partners share profits equally and losses on a 60:40 ratio. During the period the partnership earned profit of 200,000 before salary allowances. How much is the share of Partner B in the partnership profit?

7. Maxwell is trying to decide whether to accept a salary of 40,000 or a salary of 25,000 plus a bonus of 10% of profit after salaries and bonus, as a means of allocating profit among partners. Salaries traceable to the other partners are estimated to be 100,000. What amount of profit would be necessary so that Maxwell would consider the choices to be equal?

8. Garcia and Henson formed a partnership on January 2, 2005 and agreed to share profits 90% and 10%, respectively. Garcia contributed capital of 25,000. Henson contributed no capital but has a specialized expertise and manages the firm full time. There were no withdrawals during the year. The partnership agreement provides for the following: Capital accounts are to be credited annually with interest at 5% of beginning capital. Henson is to be paid a salary of 1,000 a month. Henson is to receive a bonus of 20% of income calculated before deducting his salary, bonus and interest on capital account. The partnership 2005 income statement as follows: Revenues 96,450 Expenses (including salary, interest, and bonus) 49,700 Net income 46,750 What is Henson's 2005 bonus?

9. The statement of financial position of AB Partnership shows the following information as of July 1, 20x1: Cash 48,000 Receivable from A 32,000 Equipment 1,560,000 Totals 1,640,000 Payable to B 40,000 A, Capital (40%) 600,000 B, Capital (60%) 1,000,000 Totals 1,640,000 On July 1, 20x1, the partners decide to admit C as a new partner with a 20% interest. The net assets of the firm as of this date approximate their fair values. If no bonus shall be allowed, how much should C invest in the partnership?

10. The following are the capital account balances and profit and loss ratios of the partners in AB Partnership as of Jan. 1, 20x1: Capital accounts Profit & loss ratios A, Capital 600,000 40% B, Capital 1,000,000 60% 1,600,000 On Jan. 1, 20x1, C was admitted into the partnership when he invested equipment with a historical cost of 400,000 and fair value of 320,000 for a 20% interest. The net assets of the partnership as of this date approximate their fair values. If the bonus method is used to record the admission of C, how much would be credited to C's capital account?