Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following condensed balance sheet is presented for the Surfs Up Partnership of Bethany, Alana, and Coco who share profits and losses in the ratio

The following condensed balance sheet is presented for the Surfs Up Partnership of Bethany, Alana, and Coco who share profits and losses in the ratio of 6:2:2, respectively:

Cash

$ 40,000

Other assets

140,000

$ 180,000

Liabilities

$ 70,000

Bethany, Capital (60%)

50,000

Alana, Capital (20%)

50,000

Coco, Capital (20%)

10,000

$ 180,000

It was agreed to by all the partners that the partnership would be liquidated after selling the other assets. All partners are personally insolvent. The other assets are sold for $80,000 and the liabilities are paid off. What amount of cash will Bethany, Alana, and Coco receive respectively upon liquidation?

A.

$12,500, $37,500, $0

B.

$50,000, $50,000, $10,000

C.

$13,000, $37,500, $0

D.

$14,000, $38,000, $2,000

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

Modern Auditing

Authors: Graham W. Cosserat, Neil Rodda

3rd Edition

0470319739, 9780470319734

More Books

Students also viewed these Accounting questions