Please solve this problem completely Account Titles and ExplanationDebitCredita.b.C.d.> Blossom Company at December 31 has cash $23,800, noncash assets $ 106,000, liabilities $ 51,600, and the following capitalbalances: Floyd $ 45,000 and DeWitt $ 33,200. The firm is liquidated, and $ 112,000 in cash is received for the noncash assets. Floydand DeWitt income ratios are 70% and 30%, respectively. Blossom 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.С.Payment of creditors.d.Distribution of cash to the partners.

Liquidation means where the company decide to close out the operations , sell all the assets and…

Answered: Blossom Company at December 31 has cash…

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter11: Partnerships: Distributions, Transfer Of Interests, And Terminations

Section: Chapter Questions

Problem 18CE

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The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after Tatum receives a 10,000 salary and Brook receives a 15,000 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $40,000 B. $25,000 C. ($5,000) In addition, show the resulting entries to each partners capital account. Tatums capital account balance is $50,000 and Brooks is $60,000.
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…
Stewardship Enterprises, a partnership, is about to begin liquidation. The process for selling the company’s assets will occur over time, but the partners would like to receive cash distributions as asset sales occur. The company’s books show total assets of $1 million, which includes a Note Receivable of $32,000 from partner Jones. Income allocations are 4:1:5 and existing partnership capital balances are: Jones $200,000; Smith $100,000; and Holt $90,000. Required: Prepare a cash distribution plan.
A partnership has gone through liquidation and now reports the following account balances: Cash Loan from Molina Ashman, capital Molina, capital Pinckney, capital Diaz, capital $ 16,000 3,000 (2,000) (deficit) (5,000) (deficit) 13,000 7,000 Profits and losses are allocated on the following basis: Ashman, 30 percent; Molina, 20 percent; Pinckney, 30 percent; and Diaz, 20 percent. Required: Calculate the safe payments that can be made to individual partners. Adjusted balances (safe payments) Answer is complete but not entirely correct. Molina $3,200 Ashman $ 4,800 Pinckney $ 4,800 x $ Diaz 3,200 x
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 .
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. Instructions 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.2. Assume that the partner with the capital deficiency in part (b) declares bankruptcy and is unable to pay the deficiency. Journalize the entries to (a)…
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…

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