Cullumber Company at December 31 has cash $23,000, noncash assets $105,000, liabilities $57,400, and the following capital balances: Floyd $45,800 and DeWitt $24,800. The firm is liquidated, and $116,000 in cash is received for the noncash assets. Floy and DeWitt income ratios are 60% and 40%, respectively. Cullumber Company decides to liquidate the partnership. Prepare the entries to record: (Credit account titles are automatically Indented when amount is entered. Do not indent manually) a. b. C. d. The sale of noncash assets. The allocation of the gain or loss on realization to the partners. Payment of creditors. Distribution of cash to the partners.
Q: The Hat Store had the following series of transactions for Year 2. Date Transaction Description…
A: FIFO stands for First in and First out. Using FIFO method, the oldest inventory is sold first. The…
Q: Assume that the stockholders' equity section on the balance sheet of Mangum's, a popular department…
A: "Since you have posted a question with multiple sub-parts, we will do the first three sub-parts for…
Q: On June 1 of the current year, Pamela Schatz established a business to manage rental property. She…
A: An accounting transaction is a business activity or event that causes a measurable change in the…
Q: Sheridan Company had sales in 2022 of $1,457,500 on 58,300 units. Variable costs totalled $583,000,…
A: An income statement is a financial report that indicates the revenue and expenses of a business. It…
Q: On March 1, Lincoln sold merchandise on account to Sheridan Company for $28,800, terms 1/10, net 45.…
A: The journal entry for credit sales has been prepared below:
Q: Agean Consultancy Service has been asked to quote a price for a contract that will take two weeks to…
A: Relevant cost is the cost which is relevant in decision making process such as variable cost. Sunk…
Q: Cast Exercise Equipment, Inc. reported the following statement of cash flows for 2024: (Click the…
A: The statement of cash flows shows how the cash position of the entity has changed. It shows whether…
Q: PE 21-8A Using process costs for decision making obj. 4 EE 21-8 P. 997 The costs of materials…
A: “Since you have posted multiple questions, we will provide the solution only to the first question.…
Q: Illustration 2 Sita, Rita and Meeta are partners sharing profit and losses in the ratio of 2:2:1…
A: Partnership is the relation between two or more person, it has the following characteristicsThey…
Q: REQUIRED Prepare the Pro Forma Statement of Financial Position as at 31 December 2023 from the…
A: A pro forma balance sheet is a projected or anticipated financial statement that presents the…
Q: [The following information applies to the questions displayed below.] Onslow Company purchased a…
A: Journal entry is the first stage of accounting process.Journal entry used to record business…
Q: At December 31, 2023, Cord Company's plant asset and accumulated depreciation and amortization…
A: Depreciation and Amortization CostsAccounting techniques such as depreciation and amortization…
Q: Required Information [The following information applies to the questions displayed below] Timberly…
A: The lump sum paid to acquire various assets can be allocated to particular asset on the basis of…
Q: Rock Bottom Gold Company recently repurchased 7.19 million shares of its common stock for $48 per…
A: The Stockholder's equity tells about the issued capital and Retained earnings of the business. The…
Q: Capitalized cost is an application of perpetuity. It is the sum of the first cost and the present…
A: Capitalized cost is the cost that arise of the fixed asset that include the amount of all expenses…
Q: Sigma Corporation applies overhead cost to jobs on the basis of direct labor cost. Job V, which was…
A: The cost of jobs that are unfinished are reported as work in process inventory.The cost of completed…
Q: [The following information applies to the questions displayed below.] The Platter Valley factory of…
A: Flexible budgetA flexible budget is a type of budget that can be adapted to the changes in revenue…
Q: Problem 5-68 (Static) Part a Required a. Use the high-low method to estimate the fixed and variable…
A: Cost is the Added of money related to materials, or labor needed to purchase or make anything in the…
Q: INFORMATION Extracts of the financial statements of Turbo Limited for 2022 are given below. TURBO…
A: The business entities or lenders determine financial ratios to compare different companies' outcomes…
Q: The accounting standards require management to evaluate an entity's ability to continue as a going…
A: Going concern is a company that is financially stable enough to meet its obligations and continue…
Q: Mary's Ltd
A: A bank reconciliation statement is a document prepared by a company that shows its…
Q: Some of the information found on a detailed inventory card for Whispering Winds Stationery Ltd. for…
A: Cost of Goods Sold refers to the direct expenses incurred by a company in producing or acquiring the…
Q: Depreciation by Two Methods A computer system acquired on January 1 at a cost of $36,000 has an…
A: DEPRECIATION EXPENSEDepreciation means gradual decrease in the value of an asset due to normal wear…
Q: In Grouper Company's flexible budget graph, the fixed-cost line and the total budgeted cost line…
A: Budgeted cost includes fixed cost and variable cost. The variable cost changes with the level of…
Q: 34.) You were hired as a consultant to Giambono Company, whose target capital structure is 40%…
A: COST OF CAPITALCost of Capital is the minimum rate of return that must be earned on investments, in…
Q: Instructions The following selected transactions were completed by Amsterdam Supply Co., which sells…
A: A general journal is defined as a book in which the raw data pertaining to the transactions or…
Q: nstructions he following data were gathered to use in reconciling the bank account of Reddan Company…
A: Bank reconciliation is the process of matching the bank balance shown on a bank statement to the…
Q: Required information Use the following information for the Quick Study below. (Algo) [The following…
A: The flexible budget performance report is prepared to compare the actual and flexible production…
Q: A new accountant at Oriole Inc. is trying to identify which of the amounts shown below should be…
A: Treasury billA Treasury bill is one of the financial instruments which is in the nature of a…
Q: ElecBooks Corporation provides an online bookstore for electronic books. The following is a…
A: Assets have debit balance while liabilities and equity have credit balance.As per dual concept of…
Q: Renfroe, Inc. acquired 10% of Stanley Corporation on January 4, 2020, for $90,000 when the book…
A: Investment is a chase with objective of purchase achieving funds in significant value when an acid…
Q: During periods of inflation, which of the following is true? Group of answer choices: FIFO…
A: There are different methods for pricing or valuing materials. First-In-First-Out (FIFO),…
Q: Welch Manufacturing is approached by a European customer to fulfill a one-time-only special order…
A: Lets understand the basics.Transfer price comes into picture when transfer is made from one…
Q: After the revenue and expense accounts have been closed, the balance in Income Summary will be O a…
A: The closing entries are prepared to close the temporary accounts of the business. The revenue and…
Q: Blue Horizon pty Ltd, a resident company that was formed in 2009, has a 31 March financial year-end.…
A: Dividend tax refers to the tax which is imposed by the law on the dividends received by the…
Q: ercise 2. Cosma Co engaged in the following transactions during Ja equired: Record the January…
A: Two type of journals are being prepared in business. One is general journal and other is special…
Q: Edwina Industrial Products (EIP) manufactures cleaning products. The Grant Street Plant produces a…
A: Process costing is a method of cost accounting, which is used where there is continuous production…
Q: Linwood Company recently began production of a new navigation device, which required a capital…
A: Markup through absorption cost refers to a pricing strategy used by businesses to determine the…
Q: a Section 1250 asset is sold by an individual taxpayer at a gain of $14,000 and has accumulated…
A: When individuals sell 1250 property at a gain, they are not required to recognize any of the gain…
Q: M-a-k-e- -a- -u-n-d-e-r-s-t-a-n-d-i-n-g- -o-f- -a-l-l- -t-h-e- -t-o-p-i-c- -m-e-n-t-i-o-n-s-…
A: Here is an overview of the income taxes of corporations in the Philippines:Concept of CorporationsA…
Q: Required information [The following information applies to the questions displayed below.) Ramirez…
A: The depreciation expense is charged on fixed assets as reduction in the value of fixed assets with…
Q: At the beginning of the current year, Able and Baker formed the AB Partnership by transferring cash…
A: A partnership is a firm where 2 or more individuals run a firm by being a partner in it. All the…
Q: The employees of Pelter Company earn wages of $12,400 for the two weeks ending April 12. FIT taxes…
A: The essential ideas and principles that serve as the cornerstone of a just and effective tax system…
Q: Contributions Individual Zoe Zoe Andrew Andrew Asset Cash Inventory (securities) Land Building Print…
A: Partnership contribution refers to the aggreate cash and other asset contibuted by the partner at…
Q: 1) Given the following adjusted account balances in random order, prepare the closing entries for…
A: Temporary accounts are accounts related with revenues, expenses, withdrawals in the business.…
Q: On April 2 a corporation purchased for cash 5,000 shares of its own $15 par common stock at $26 per…
A: Treasury stock is that stock which is being repurchased by the business from the open market. This…
Q: Federated Fabrications leased a tooling machine on January 1, 2024, for a three-year period ending…
A: The lease is a legal agreement between the lessor and lessee. The lessor provides the assets with…
Q: additional details are provided for the yea Direct materials placed in production $83,000 Direct…
A: Computation of the ending balance in finished goods inventory refers to the process of determining…
Q: $0 ric 200 The following summarizes Tesla's merchandising activities for the year. Set up T-accounts…
A: Cost of goods sold : This is the amount of cost which consist in inventory and can be calculated as…
Q: 16. Logan Corporation purchased a patent for $60,000 on 1-1-2023. The patent has a 5 year remaining…
A: The amortization expense is charged on fixed assets as reduction in the value of the intangible…
Kk.426.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
- The partnership of Gordon, Handel, and Mitchell is considering possible liquidation because partner Mitchell is personally insolvent. The partners have the following capital account balances: $120,000, $140,000, and $80,000, respectively, and share profits and losses 35%, 45%, and 20%, respectively. The partnership has $400,000 in noncash assets that can be sold for $300,000. The partnership has $20,000 cash on hand, and $80,000 in liabilities. What is the minimum that partner Mitchell’s creditors would receive if they have filed a claim for $100,000? A. 0 B. 20,000 C. 60,000 D. 80,000 E. 100,000Danks, Vernersen, and Walsh are liquidating their partnership. Before selling the assets and paying the liabilities, the capital balances are Danks $40,000; Vernersen, $26,000; and Walsh, $16,000. The profit-and-loss-sharing ratio has been 3:1:1 for Danks, Vernersen, and Walsh, respectively. The partnership has $65,000 cash, $42,000 non-cash assets, and $25,000 accounts payable. Read the requirements. .... . Requirement 1. Assuming the partnership sells the non-cash assets for $49,000, record the journal entries for the sale of non-cash assets, allocation of gain or loss on liquidation, the payment of the outstanding liabilities, and the distribution of remaining cash to partners. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Journalize the sale of the non-cash assets for $49,000. Date Accounts and Explanation Requirements Debit Credit Dec. 31 1. Assuming the partnership sells the non-cash assets for $49,000, record the journal…Gonda, Herron, and Morse is considering possible liquidation because partner Morse is personally insolvent. The partners have the following capital account balances: $60,000, $70,000, and $40,000, respectively, and share profits and losses 30%, 45%, and 25%, respectively. The partnership has $200,000 in noncash assets that can be sold for $150,000. The partnership has $10,000 cash on hand, and $40,000 in liabilities. What is the minimum that partner Morse’s creditors would receive if they have filed a claim for $50,000? A. $0 B. $27,500 C. $45,000 D. $47,500 E. $50,000
- Cullumber Company at December 31 has cash $23,000, noncash assets $105,000, liabilities $57,400, and the following capital balances: Floyd $45,800 and Dewitt $24,800. The firm is liquated, and $116,000 in cash is received for the noncash assets. Floyd and Dewitt income ratios are 60% and 40%, respectively. Cullumber Company decides to liquidate the partnership Prepare the entries to record: (credit account titles are automatically indented when amount is entered . Do not indent manually.) A. The sale of noncash assets. B. The allocation of the gain or loss on realization to the partners. C. Payment of creditors. D. Distribution of cash to the partners .Ole Low, Arnt Olson, and Stig Lokum decided to liquidate the CRANE partnership on December 31 of the current year, and go their separate ways. The partners share profit and losses equally. As at December 31, the partnership had cash of $14,000, noncash assets of $119,000, and liabilities of $18,000. Before selling their noncash assets, the partners had capital balances of $44,700, $62,300, and $8,000, respectively. The noncash assets were sold for $80,000 and the creditors were paid. Calculate the loss on the sale of the noncash assets and the amount of cash remaining after paying the liabilities. Loss on sale of noncash assets Cash balance after paying the liabilities$On January 1, the partners of Van, Bakel, and Cox (who share profits and losses in the ratio of 5:3:2, respectively) decide to terminate operations and liquidate their partnership. The trial balance at this date follows: Cash Accounts receivable Inventory Machinery and equipment, net Van, loan Accounts payable Bakel, loan Van, capital Bakel, capital Cox, capital Totals Debit $ 32,000 94,000 Credit 80,000 217,000 58,000 $ 89,000 48,000 152,000 104,000 88,000 $ 481,000 $ 481,000 The partners plan a program of piecemeal conversion of the partnership's assets to minimize liquidation losses. All available cash, less an amount retained to provide for future expenses, is to be distributed to the partners at the end of each month. A summary of the liquidation transactions follows: January February March Collected $65,000 of the accounts receivable; the balance is deemed uncollectible. Received $52,000 for the entire inventory. Paid $8,000 in liquidation expenses. Paid $80,000 to the outside…
- On November 1, the firm of Sails, Welch, and Greenberg decided to liquidate its partnership. The partners have capital balances of $58,000, $72,000, and $10,000, respectively. The cash balance is $32,000, the book values of noncash assets total $128,000, and liabilities total $20,000. The partners share income and losses in the ratio of 2:2:1. Required: 1. Prepare a statement of partnership liquidation, covering the period November 1–30, for each of the following independent assumptions: a. All of the noncash assets are sold for $156,000 in cash, the creditors are paid, and the remaining cash is distributed to the partners.* b. All of the noncash assets are sold for $55,000 in cash, the creditors are paid, the partner with the debit capital balance pays the amount owed to the firm, and the remaining cash is distributed to the partners.* * Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those…Item Nos. 10 to 12 are based on the following information: On August 31, 200F, Apeng, Poleng, and Openg decided to liquidate their partnership. Their capital accounts and profit sharing. ratio are as follows: Capital Profit & Loss Ratio P 150,000 50% Apeng 255,000 Poleng 30% 135,000 20% Openg- On this date, there were liabilities of P 187,500 still unpaid and the cash balance was zero. Apeng is insolvent. 10. If Openg received a total of P 22,500, Poleng would have received: a. P 33,750. C. P 77,250. b. P 47,250. d. P 86,250. 11. If Openg received a total of P 22,500, how much cash was realized from the sale of the noncash assets? a. P 431,250. C. P 281,250. b. P 296,250. d. P 196,250. 12. The cash to be realized on the sale of the noncash assets so that Apeng would receive a total of P 225,000 should be: a. P 897,500. c. P 752,500. b. P 877,500. d. P 750,000.On January 1, the partners of Van, Bakel, and Cox (who share profits and losses in the ratio of 5:3:2, respectively) decide to terminate operations and liquidate their partnership. The trial balance at this date follows: Cash Accounts receivable Inventory Machinery and equipment, net Van, loan Accounts payable Bakel, loan Van, capital Bakel, capital Cox, capital Totals Debit $ 32,000 94,000 Credit 80,000 217,000 58,000 $ 89,000 48,000 152,000 104,000 88,000 $ 481,000 $ 481,000 The partners plan a program of piecemeal conversion of the partnership's assets to minimize liquidation losses. All available cash, less an amount retained to provide for future expenses, is to be distributed to the partners at the end of each month. A summary of the liquidation transactions follows: January February March Collected $65,000 of the accounts receivable; the balance is deemed uncollectible. Received $52,000 for the entire inventory. Paid $8,000 in liquidation expenses. Paid $80,000 to the outside…
- On November 1, the firm of Sails, Welch, and Greenberg decided to liquidate their partnership. The partners have capital balances of $58,450, $71,770, and $10,190, respectively. The cash balance is $31,750, the book values of noncash assets total $129,020, and liabilities total $20,360. The partners share income and losses in the ratio of 2:2:1. Required: 1. Prepare a statement of partnership liquidation, covering the period November 1–30, for each of the following independent assumptions: a. All of the noncash assets are sold for $156,950 in cash, the creditors are paid, and the remaining cash is distributed to the partners.* b. All of the noncash assets are sold for $56,240 in cash, the creditors are paid, the partner with the debit capital balance pays the amount owed to the firm, and the remaining cash is distributed to the partners.* * Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those…At year-end, the Circle City partnership has the following capital balances: Manning, Capital $350,000 Gonzalez, Capital 330,000 Clark, Capital 300,000 Freeney, Capital 290,000 Profits and losses are split on a 3:3:2:2 basis, respectively. Clark decides to leave the partnership and is paid $330,000 from the business based on the original contractual agreement.The payment made to Clark beyond his capital account was for Clark's share of previously unrecognized goodwill. After recognizing partnership goodwill, what is Manning’s capital balance after Clark withdraws? a. $359,000b. $372,500c. $380,000d. $395,000Partners Shuka, Towyo&Fatis, who share profit and loss in the ratio of 3:5:2, respectively have decided to liquidate their partnership. The statement of financial position of the partnership at the time of liquidation is shown below: Cash P 86,300 Accounts Payable P 58,000 Other Assets 303,700 Loans from Towyo 15,500 Shuka, Capital 93,000 Towyo, Capital 95,000 Fatis, Capital 128,500. The partnership is to prepare an instalment distribution schedule showing how cash would be distributed to partners as assets are realized. In the schedule of cash priority program, the maximum absorbable loss for Shuka would be?In the schedule of cash priority program, the maximum absorbable loss for Towyo would be?In the schedule of cash priority program, the maximum absorbable loss for Fatis would be?assuming Partners Shuka, Towyo and Fatis share Profit and Loss equally, the maximum absorbable loss for Shuka would be?