Question
The partnership of Anderson, Berry, Hammond, and Winwood is being liquidated. It currently holds cash of $21,200 but no other assets. Liabilities amount to $40,500.
The partnership of Anderson, Berry, Hammond, and Winwood is being liquidated. It currently holds cash of $21,200 but no other assets. Liabilities amount to $40,500. The capital balances are
| Anderson (40% of profits and losses) | $ | 26,700 | ||
| Berry (20%) | 14,000 | |||
| Hammond (20%) | (26,000 | ) | (deficit) | |
| Winwood (20%) | (34,000 | ) | (deficit) | |
a. If both Hammond and Winwood are personally insolvent, how much money must Berry contribute to this partnership?
b-1. If only Winwood is personally insolvent, how much money must Hammond contribute to the partnership?
b-2. If only Winwood is personally insolvent, how will Hammond's contribution (funds) be disbursed?
c. If only Hammond is personally insolvent, how much money should Anderson receive from the liquidation?
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Accounting For Inventory
Authors: Steven M. Bragg
3rd Edition
1642210145, 9781642210149
