Mr. Cauzone decided to wind-up his Company on 12/31/21. After selling all assets and settling all liabilities, there's $122,000 of Cash left in the Company. Mr. Cauzone owns all the shares of the Company with ACB of $7,000. He has come to you for advice and provided the following balances: PUC CSOH CDA GRIP $2,000 $5,000 $48,000 $24,000 Assuming Mr. Cauzone has no other income, calculate his Federal taxes
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- Mr. Cauzone decided to wind-up his Company on 12/31/21. After selling all assets and settling all liabilities, there’s $122,000 of Cash left in the Company. Mr. Cauzone owns all the shares of the Company with ACB of $7,000. He has come to you for advice and provided the following balances: PUC CSOH CDA GRIP $2,000 $5,000 $48,000 $24,000 Assuming Mr. Cauzone has no other income, calculate his Federal taxes payable / refundable for 2021, based on above.Partners Ong, Rodriguez, Pamittan and Reyes who share profits andlosses at 30%, 30%, 20% and 20%, respectively, decided to liquidate. Allpartnership assets are to be converted into cash. Before liquidation, thecondensed statement of financial position follows:Cash P100, 000 Liabilities P750, 000Other Assets 1, 800, 000 Rodriguez, Loan 60, 000Reyes, Loan 50, 000Ong, Capital 420, 000Rodriguez, Capital 315, 000Pamittan, Capital 205, 000Reyes, Capital 100, 000Total P1, 900,000P1, 900,000The non-cash assets realized P800, 000, resulting to a loss of P1, 000,000. All the partners are solvent, and can contribute any additional cash tocover any deficiency. In the process of liquidation, deficiencies will occur andwill require additional investment as follows:a. Pamittan at P7, 500b. Reyes at P50, 000c. Reyes and Pamittan for P50, 000 and P7, 500, respectivelyd. Nonemcdonalds. is shutting down business and liquidating. The balances below will be used for the liquidation. john and brad share profits and losses equally. Cash $3,000 Notes Payable $7,500 vehicle 30,000 Less: Accumulated Depreciation 15,000 Bert, Capital 9,000 Ernie, Capital 1,500 Total Assets $18,000 Total Liabilities and Partner's equity $18,000 Sesame Street Co. Balance Sheet December 31, 2020 Assets Liabilities Partners' Equity The vehicle has been sold for $10,500 cash and neither partner has sufficient assets to pay any capital deficits. REQUIRED: Prepare the journal entries for the sale of the vehicle and the distribution of the cash to the proper parties on January 1, 2021 below.
- You have been recently appointed the junior accountant of Peachy Limited. The following trial balance has been extracted from the records of Peachy Limited as at 31 December 2020. €’000 €'000 Ordinary shares of €1 each 150,000 50,000 50,000 80,000 129,010 Share Premium 5% preference shares 7% loan notes Retained earnings Premises 290,000 87,000 40,000 Motor vehicles at cost Equipment at cost Accumulated depreciation – motor vehicles Accumulated depreciation - Equipment Inventory at 1.1.20 Payables Receivables 17,000 8,000 48,000 12,750 24,400 Bank 11,740 Revenue 327,000 Purchases 188,000 34,000 Wages Administrative expenses Selling & distribution costs 15,320 12,470 70,230 2,600 Directors Salaries Loan note interest paid 823,760 823,760 Additional Information: 1. The company uses the revaluation model for valuing its premises. The premises is included in the trial balance at its fair value as at 31 December 2019. Both motor vehicles and equipment are included in the trial balance at…The partners in Crawford Company decide to liquidate the firm when the balance sheet shows the following. Crawford Company Balance Sheet May 31, 2020Assets Liabilities and Owners' EquityCash $ 27,500 Notes payable $ 13,500Accounts receivable 25,000 Accounts payable 27,000Allowance for doubtful accounts (1,000) Salaries and wages payable 4,000Inventory 34,500 A. Jamison, capital 30,000Equipment 21,000 S. Moyer,…(c) Sedgwick Company at December 31 has cash Tk. 20.000, noncash assets Tk. 100,000, liabilities Tk. 55,00, and the following capital balences: Floyd Tk. 45.000 and DeWitt Tk. 20.000. The firm is liquidated, and Tk. 105,000 in cash is received for the noncash assets. Floyd and DeWitt income ratios are 60% and 40%, respectively. Instructions Prepare a schedule of cash payments.
- liquidate their business on September 30, 20xx. The following is the condensed profits and losses at a rate of 50%, 30% and 20% respectively. They decided to Terrence, Theodore and Thomas are partners in Toys4U Company: They sbare in Exercise 4. Installment Liquidation statement of financial position prior to liquidation: Toys4U Company Statement of Financial Position As at September 30, 20xx Liabilities and Capital Assets P 103,000 64,000 Cash P 43,450 Liabilities Terrence, Loan Terrence, Capital Theodore, Capital Thomas, Capital Total Liabilities and Capital P 538.400 Non-cash Assets 494,950 131,250 43,800 196,350 Total Assets P 538,400 The following data relate to the realization of non-cash assets: Вook Cash Liquidation Expenses Paid Liabilities Withheld P 9,600 Unrecorded Cash Value Realized October P197,600 P160,950 168,000 29,600 P12,400 P24,000 6,400 November 265,350 11,200 1,600 December 32,000 1,600 Required: 1. Statement of Liquidation from October to December 20xx. 2.…On January 1.2019 an investor bought 400 shares of Absaroka, inc for 4 per nhare On Jrry 1 2000 the inveter sold the stk e 7 per shaie The sock pada terly dvidend of 031 per shore Hw mh de he stt ean on s linvestment and, ansuming the invest pays a ta a of 15% on dividends and cpal gains, how muh w the pay income tas dn this aaction? The amount before taxes) the investor earmed un westments Round to the neart dl) Rund to the et Assuning a tx rate of 15 he amount she wil pay in incame taxes on this tranacdon isI into t the y CO stin costs Alexander Company insured an mber the life of its president for on P2,000,000. A total of 0,00 0,000 0,000 0,000 P500,000 in premiums was paid before the president died. The company collected the total proceeds. Compute the em 4 return on capital. * 2020 e BIR d that Emate P650 O a. P0 O b. P1,500,000 с. Р500,000 O d. P 2,000,000 e 202 and a mount r 31, 2 lous pointe
- Prablam ABC Patnershp was formed in year 2021 aunt setore datrouton of prott and loss. the followng accounts appeared in the books of the panmership the end eof year 2021 A capital 31 5,000 1 75,000 TO1 1 115.000 B. capital 20 000 V1 30 90,000 60,000 C, capital V T 25 |01 100,000 Revenue and epense summary 240.00 X If profits ore divided os follous, whaot is the share of A?" a. An 8% interest is given to each partners' average capital. b. Partners A and 6 will receive P2,500 monthly salary while partners C will receive P3,000 monthly c. 10% bonus based on income after salaries, interest and bonus is given to partner A d. Residual income is divided equally.ABC Co. is undergoing liquidation. The following are the account balances after all the non-cash assets were sold: 50,000 Liabilities A, Capital (30%) B, Capital (30%) C, Capital (40%) Cash 120,000 90,000 (60,000) (100,000) The personal assets and liabilities of the partners are as follows: Personal assets 80,000 100,000 192,000 Personal liabilities 90,000 61,000 80,000 A B C wants to make an additional contribution of only P70,000, which A is refuting. If the doctrine of marshaling of assets is followed, how much of A's P90,000 equity would appear to be recoverable? a. 90,000 b. 79,000 c. 81,000 d. 0P15-25 Accounting for debt and equity investments This problem continues the Canyon Canoe Company situation from Chapter 14. Amber Wilson is pleased with the growth of the business and has decided to invest its temporary excess cash in a brokerage account. The company had the following securi-ties transactions in 2019. Jul. 1 Purchased 8,000 shares in Adobe Outdoor Adventure Company for $3 per share. Canyon Canoe does not have significant influence over Adobe. Jul 7 Purchased 35% of the stock of Bison Backpacks consisting of 43,750 shares of stock (out of a total of 125,000 shares) for $5 per share. Canyon Canoe does have significant influence over Bison. Jul 10 Purchased a bond from Camelot Canoes with a face value of $80,000. Canyon Canoe intends to hold the bond to maturity. The bond pays interest semiannually on June 30 and December 31. Sep. 30 Received dividends of $0.15 per share from Adobe. Nov. 1 Received dividends of $0.30 per share from Bison. Dec. 31 Received…