where does that number 395,000 come from inder possoble losses
562 CHAPTER 17 represent the relevant profit- and loss-sharing 30, 2016, are as fo ratios. ADDITIONAL INFORMATION t. The percentages indicated 2 Personal assets and liabilities of the partners at June Personal Liabilities $300,000 150,000 300,000 20,000 Personal Assets $600,000 100,000 Cid Don 100,000 3. Ace pays $200,000 into the partnership, and partnership liabilities are paid on July 1, 2016 4 On July 15, z016, Cid pays $100,000 into the partnership and Don pays $80,000. No furtbes from either Cid or Don are possible. 5. Losses from the bankruptcy of Cid are divided among the solvent partners on Jul Avslable cabh a istrlbuted nd the partnernhip books are closed on July 31.2016. statement for the Ace, Ben, Cid, and Don Partnership for the REQUIRED 30, 2016, to July 31, 2016. E D: Prepare a liquidation Safe pyments schedule The partnershjp of Dee, Ema, Lyn, and Geo is being liquidated over the first few months of 2016. The tre January 1, 2016, is as follows: Credits Debits $200,000 56,000 142,000 300,000 150,000 20,000 Cash Accounts receivable Inventory Equipment (net) Land Loan to Dee Accounts payable $400,000 170,000 80,000 140,000 78,000 $868,000 Dee capital (20%) Ema capital (10%) Lyn capital (50%) Geo capital (20%) $868,000 ADDITIONAL INFORMATION 1. The partners agree to retain $20,000 cash on hand for contingencies and to distribute the rest of the able cash at the end of each month. 2 In January, half of the receivables were collected. Inventory that cost $75,000 was liquidated for $4510 The land was sold for $250,000. REQUIRED: Prepare a schedule of safe payments for the Dee, Ema, Lyn, and Geo partnership for l 31, 2016. Installment liquidation-Various situations The assets and equities of the Sam, Red, and Sal partnership at the end of its fiscal year on October 31 Assets 31,2016,are as bs Equities Cash Receivables-net Inventory $15,000 Liabilities 20,000Loan from S $ 50,000 beams aa13e sm 17 (1) (Protected View)- Microsoft Word view View Enable Editing be unsafe. Click for more details. Lyn and Geo Partnership e Payment Schedule January 31, 2016 DeeEma ossible Lyn 150%) Geo Dee Ema (105) Losse: 120%) Partner's equity at 1/1 January profit/loss 150, 000 $80,000 $140,000 $78, 000 transactions: (6,000) (3,000) (15,000) (6, 000) so, ooo 20,000 Inventory sale Land sale 20,000 10, 000 $164,000 $87,000 175,000$92,000 Partner's equity at 1/31 Possible losses-noncash $395,000 (79,000) (39,500) (197,500) (79,000) Possible losses-contingent 20,000 (4,000) 12,000) (10,000) (4,000) $81,000 $45,500 (32,500) 9, 000 (13,000) 6,500) 32,500 (13,000) 0 $(4,000) Possible losses-Lyn $ 68, 000 $39,000 $ Possible losses_Geo Payments of $103,000 can be safely made to Dee and Ema in the amounts shown above. Check: Cash available Accounts payable Contingencies Available to partners 523,00o s (400, 000) (20,000) (250,000 land 45,000 inv.+28,000 rec. +200,000 cash)
