Question

Distribution of Cash Upon Liquidation Hewitt and Patel are partners, sharing gains and losses equally. They...

Distribution of Cash Upon Liquidation Hewitt and Patel are partners, sharing gains and losses equally. They decide to terminate their partnership. Prior to realization, their capital balances are $42,000 and $28,000, respectively. After all noncash assets are sold and all liabilities are paid, there is a cash balance of $53,000. a. What is the amount of a gain or loss on realization? $ b. How should the gain or loss be divided between Hewitt and Patel? Hewitt Patel c. How should the cash be divided between Hewitt and Patel? If an amount is zero, enter "0". Hewitt and Patel Distribution of Cash Hewitt Patel Capital balances before realization $ $ Division of gain or loss on realization Balances $ $ Cash distributed to partners Final balances $ $

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

a) (42000+28000)- 53,000 = 17,000

b)Hewitt= 8,500

Patel = 8,500

c)

Distribution of Cash
Hewitt Patel
Capital balances before realization $ 42,000.00 $ 28,000.00
Division of gain or loss on realization $ (8,500.00) $ (8,500.00)
Balances $ 33,500.00 $ 19,500.00
Cash distributed to partners $ 33,500.00 $ 19,500.00
Final Balances $                 -   $                 -  
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Distribution of Cash Upon Liquidation Pryor and Lester are partners, sharing gains and losses equally. They...
Distribution of Cash Upon Liquidation Pryor and Lester are partners, sharing gains and losses equally. They decide to terminate their partnership. Prior to realization, their capital balances are $18,000 and $12,000, respectively. After all noncash assets are sold and all liabilities are paid, there is a cash balance of $23,000. a. What is the amount of a gain or loss on realization? Gain or Loss Amount $ b. How should the gain or loss be divided between Pryor and Lester?...
1. Admitting New Partners Who Buy an Interest and Contribute Assets The capital accounts of Trent...
1. Admitting New Partners Who Buy an Interest and Contribute Assets The capital accounts of Trent Henry and Tim Chou have balances of $187,500 and $135,200, respectively. LeAnne Gilbert and Becky Clarke are to be admitted to the partnership. Gilbert buys one-fifth of Henry’s interest for $43,100 and one-fourth of Chou’s interest for $29,700. Clarke contributes $45,800 cash to the partnership, for which she is to receive an ownership equity of $45,800. a1. Journalize the entry to record the admission...
Immediately prior to the process of liquidation on December 31, 2014 partners Micco, Niccum, and Orwell...
Immediately prior to the process of liquidation on December 31, 2014 partners Micco, Niccum, and Orwell of MNO Partnership have capital balances of $70,000, $20,000, and $40,000, respectively. There is a cash balance of $20,000, noncash assets total $170,000, and liabilities total $60,000. The partners share net income and losses in the ratio of 3:2:1. (Different than lecture.) If there is a defeciency assume the partner pays it. Sold non-cash assets for $80,000. 1. Prepare the Statement of Partnership Liquidation...
In liquidation, just prior to the final distribution of cash to the partners, the balance in...
In liquidation, just prior to the final distribution of cash to the partners, the balance in the Cash account is $600,000; The partners have capital balances as follows: Presley, $290,000 credit; Laswell, $250,000 credit, and Hunter, $60,000 credit. The income ratio is 6:2:2, respectively. How much cash should be distributed to Presley? Partners Audrey, Betty, and Charles have capital account balances of $210,000 each. The income and loss ratio is 5:2:3, respectively. In the process of liquidating the partnership,noncash assets...
Statement of Partnership Liquidation After closing the accounts on July 1, prior to liquidating the partnership,...
Statement of Partnership Liquidation After closing the accounts on July 1, prior to liquidating the partnership, the capital account balances of Gold, Porter, and Sims are $24,000, $34,200, and $15,300, respectively. Cash, noncash assets, and liabilities total $36,600, $63,300, and $26,400, respectively. Between July 1 and July 29, the noncash assets are sold for $50,700, the liabilities are paid, and the remaining cash is distributed to the partners. The partners share net income and loss in the ratio of 3:2:1....
Statement of Partnership Liquidation After closing the accounts on July 1, prior to liquidating the partnership,...
Statement of Partnership Liquidation After closing the accounts on July 1, prior to liquidating the partnership, the capital account balances of Gold, Porter, and Sims are $45,000, $63,900, and $28,500, respectively. Cash, noncash assets, and liabilities total $66,600, $118,500, and $47,700, respectively. Between July 1 and July 29, the noncash assets are sold for $94,500, the liabilities are paid, and the remaining cash is distributed to the partners. The partners share net income and loss in the ratio of 3:2:1....
Statement of Partnership Liquidation After closing the accounts on July 1, prior to liquidating the partnership,...
Statement of Partnership Liquidation After closing the accounts on July 1, prior to liquidating the partnership, the capital account balances of Gold, Porter, and Sims are $22,200, $31,800, and $14,100, respectively. Cash, noncash assets, and liabilities total $36,600, $58,800, and $27,300, respectively. Between July 1 and July 29, the noncash assets are sold for $46,800, the liabilities are paid, and the remaining cash is distributed to the partners. The partners share net income and loss in the ratio of 3:2:1....
Statement of LLC Liquidation Lester, Torres, and Hearst are members of Arcadia Sales, LLC, sharing income...
Statement of LLC Liquidation Lester, Torres, and Hearst are members of Arcadia Sales, LLC, sharing income and losses in the ratio of 2:2:1, respectively. The members decide to liquidate the limited liability company. The members' equity prior to liquidation and asset realization on August 1 are as follows: Lester $27,900 Torres 64,500 Hearst 40,100 Total $132,500 In winding up operations during the month of August, noncash assets with a book value of $174,200 are sold for $216,000, and liabilities of...
Following is a series of independent cases. In each situation, indicate the cash distribution to be...
Following is a series of independent cases. In each situation, indicate the cash distribution to be made to partners at the end of the liquidation process. Unless otherwise stated, assume that all solvent partners will reimburse the partnership for their deficit capital balances. Part A The Buarque, Monte, and Vinicius partnership reports the following accounts. Vinicius is personally insolvent and can contribute only an additional $22,000 to the partnership. Cash $ 143,000 Liabilities 48,000 Monte, loan 46,000 Buarque, capital (50%...
After discontinuing the ordinary business operations and closing the accounts on May 7, the ledger of...
After discontinuing the ordinary business operations and closing the accounts on May 7, the ledger of the partnership of Anna, Brian, and Cole indicated the following: Cash $    7,500 Noncash Assets 105,000   Liabilities $  27,500   Anna, Capital 45,000   Brian, Capital 15,000   Cole, Capital                    25,000 $112,500 $112,500 The partners share net income and losses in the ratio of 3:2:1. Between May 7-30, the noncash assets were sold for $150,000, the liabilities were paid, and the remaining cash was distributed to the partners....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT