please answer in text form with all working and steps EX 12-23 Statement of partnership liquidationOBJ. 4,5After closing the accounts on July 1, prior to liquidating the partnership, the capi-tal account balances of Silver, Carillo, and Tingley are $77,700, $51,800, and $25,900,respectively. Cash, noncash assets, and liabilities total $72,500, $124,200, and $41,300,respectively. Between July 1 and July 29, the noncash assets are sold for $116,400, theliabilities are paid, and the remaining cash is distributed to the partners. The partnersshare net income and loss in the ratio of 3:2:1. Prepare a statement of partnership liqui-dation for the period July 1-29.

Statement of Partnership Liquidation records and shows the the transactions of liquidation and…

Answered: cash assets, and liabilities total…

cash assets, and liabilities total $72,5 Between July 1 and July 29, the noncash asset paid, and the remaining cash is distributed to ome and loss in the ratio of 3:2:1. Prepare a sta e period Jul 1

Accounting (Text Only)

26th Edition

ISBN:9781285743615

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter12: Accounting For Partnerships And Limited Liability Companies

Section: Chapter Questions

Problem 12.3APR

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Statement of partnership liquidationAfter the accounts are closed on April 10, prior to liquidating the partnership, the capital accounts of Zach Fairchild, Austin Lowes, and Amber Howard are $42,000, $7,500, and $36,500, respectively. Cash and noncash assets total 525,500 and $84,500, respectively. Amounts owed to creditors total $22,000. The partners share income and losses in theratio of 1:1:2. Between April 10 and April 30, the noncash assets are sold for $48,500, the partner with the capital deficiency pays the deficiency to the partnership, and the liabilities are paid.Instructions1. Prepare a statement of partnership liquidation, indicating (a) the sale of assets and division of loss, (b) the payment of liabilities, (c) the receipt of the deficiency (from the appropriate partner), and (d) the distribution of cash.2. Assume that the partner with the capital deficiency declares bankruptcy and is unable to pay the deficiency. Journalize the entries to (a) allocate the partner’s…
Statement of Partnership Liquidation 14 After closing the accounts on July 1, prior to liquidating the partnership, the capital account balances of Silver, Carillo, and Tingley are $25,800, $36,600, and $16,200, respectively. Cash, noncash assets, and liabilities total $41,700, $67,500, and $30,600, respectively. Bétween July 1 and July 29, the noncash assets are sold for $53,700, 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. Prepare a statement of partnership liquidation for the period July 1-29. Enter any subtractions (balance deficiencies, payments, cash distributions, divisions of loss, sale of assets) as negative numbers using a minus sign. If an amount is zero, enter in "0". Silver, Carillo, and Tingley Statement of Partnership Liquidation For the Period Ending July 1-29 Cash + Noncash Assets = Liabilities + Silver (3/6) + Carillo (2/6) + Tingley (1/6) Balances before realization Sale…
EX 12-5 Dividing partnership net loss OBJ.2 Lynn Carpenter and Matthew Fredrick formed a partnership in which the partnership agreement provided for salary allowances of $58.000 and $41,000, respectively. Determine the division of a $33,000 net loss for the current year, assuming that remaining income of losses are shared equally by the two partners.
Exercise 12-7 (Algo) Journalizing partnership transactions LO P2 On March 1, Eckert and Kelley formed a partnership. Eckert contributed $89,000 cash, and Kelley contributed land valued at $71,200 and a building valued at $101,200. The partnership also took Kelley's $79.000 long-term note payable associated with the land and building. The partners agreed to share income as follows: Eckert gets an annual salary allowance of $29,500, both get an annual interest allowance of 11% of their initial capital investment, and any remaining income or loss is shared equally. On October 20, Eckert withdrew $31,000 cash and Kelley withdrew $24,000 cash. First year income was $77,000. Required: 1o. & 1b. Prepare journal entries to record the partners' initial capital investments and their subsequent cash withdrawals. 1c. Determine the partners' shares of income, and then prepare journal entries to close Income Summary and the partners withdrawals accounts. 2. Determine the balances of the partners'…
Problem 11-5B Partnership entries, profit allocation, admission of a partnerLO2, 3, 4 CHECK FIGURES: c. Cr. Amrick: $259,860; Cr. Balas: $150,140; d. Dr Balas: $50,520 On July 1, 2022, Alleya Amrick and Breanne Balas formed a partnership to make crafts and sell them online. Contribution (at formation on July 1 a $43,000 note payable was taken by the partners to purchase added equipment) Profit sharing Amrick $100,000 cash $183,000 equipment Required 1. Prepare journal entries for the following dates: a. July 1, 2022 b. June 20, 2023 $153,000 salary allowance 10% of original capital investments Balance 40% Balas $183,000 cash $140,000 equipment 10% of original capital investments Balance 60% $103,000 Cash withdrawal June 20, 2023 Net Income during the year was $410,000 and was in the Income Summary account. On July 1, 2023 Calla Cameron invested $123,000 and was admitted to the partnership for a 20% interest in equity
Homework Activity 2 A B and C are in partnership sharing profits and losses in the ratio of 3:2:1. On 1st Jan 2019, their capital balances are: A 30,000 B 20,000 C 10,000 The terms of partnership provides that All partners are eligible for interest on capital @6% All partners are liable to pay interest on drawings @ 4% All Partners are eligible for salary @ RO 200 per month The net profit for the year ended 31st Dec 2019 before making the above terms was 18,000. The drawings of the partners were: A 3,000 B 2,000 C 1,000 You are requested to prepare Profit and Loss Appropriations Account Capital accounts of three partners under fluctuating capital method
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Exercise 12-3 (Algo) Journalizing partnership formation LO P1 Moss and Barber organize a partnership on January 1. Moss's initial net investment is $83,000, consisting of cash ($24,000), equipment ($76,000), and a note payable reflecting a bank loan for the new business ($17,000). Barber's initial investment is cash of $34,000. Prepare journal entries to record (1) Moss's investment and (2) Barber's investment. View transaction list Journal entry worksheet < A B Record the initial investment of Moss. Note: Enter debits before credits. Transaction (1) Record entry General Journal Clear entry Debit Credit View general journal