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.
(A) Prepare a statement of partnership liquidation.
(B) Assume the facts as in (A) except that noncash assets were sold for 45,000 and any partner with a capital deficiency pays the amount of the deficiency to the partnership, prepare a statement of partner liquidation

Answers

Answer 1

Answer:

The Partnership of Anna, Brian, and Cole

A) Statement of Partnership Liquidation:

Available cash for distribution = $157,500

Payment of liabilities =                   27,500

Cash available for distribution  $130,000

Distribution to partners:

Anna                                              67,500

Brian                                              30,000

Cole                                              32,500

Total distributed                      $130,000

B) Statement of Partnership Liquidation:

Available cash for distribution = $52,500

Payment of liabilities =                  27,500

Cash available for distribution  $25,000

Capital accounts balances =       85,000

Deficiency =                               $60,000

Distribution of deficiency to partners:

Anna 3/6                                      30,000

Brian                                            20,000

Cole                                              10,000

Total distributed                       $60,000

Explanation:

a) Data and Calculations:

Cash                       7,500

Noncash assets 105,000

Total assets        112,500

Liabilities            27,500

Anna capital       45,000

Brian capital       15,000

Cole capital       25,000

                         112,500

Profit sharing ratio = 3:2:1

Sales proceeds from noncash assets = $150,000

Total cash available = $157,500 ($150,000 + 7,500)

Total capital repaid                                     $85,000

Balance to be redistributed:     $45,000

Partners                                      Excess    Capital        Total

Anna 3/6                                    22,500    45,000     $67,500

Brian 2/6                                     15,000    15,000       30,000

Cole 1/6                                        7,500   25,000       32,500


Related Questions

Nick and Beth run a catering business in which they have two major tasks: getting new clients and preparing food for events and parties. It takes Nick 8 hours to prepare food for an event and 4 hours of effort to get each new client. For Beth, it takes 12 hours to prepare food for an event and 3 hours to get a new client.
1. Who has an absolute advantage in food preparation?
2. Who has a comparative advantage in food preparation?
Suppose that initially, Nick and Beth are both splitting both tasks for a large number of events. Then they decide to start shifting some work according to the principle of comparative advantage. In particular, the person with the comparative advantage in food preparation will take over preparing food for one more event, and the other person will use the freed-up time to get more clients. As a result, the total number of events for which food is prepared will remain unchanged, but the number of new clients will increase by __?__.
The second part threw me off and I got confused. I put up the entire problem just to see if i answered it correctly or not to see whether that was what threw me off or not. Thanks in advance! :)

Answers

Answer:

NICK

NICK

2

Explanation:

A company has absolute advantage in the production of a good or service if it produces more quantity of a good when compared to other countries

Nick prepares food in 8 hours while Beth produces the food in 12 hours. ick thus has an absolute advantage in food preparation because he produces food in less time

A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries.

Opportunity cost of Nick in food preparation = 4/8 = 0.5 hours

Opportunity cost of Beth in food preparation = 3 / 12 = 0.25 hours

Nick has a comparative advantage in food preparation

Item9 Time Remaining 34 minutes 55 seconds00:34:55 Item 9 Time Remaining 34 minutes 55 seconds00:34:55 Babuca Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product. Production volume 13,900 units 15,000 units Direct materials $ 813,150 $ 877,500 Direct labor $ 215,450 $ 232,500 Manufacturing overhead $ 1,011,500 $ 1,024,150 The best estimate of the total variable manufacturing cost per unit is: (Round your intermediate calculations to 2 decimal places.) Multiple Choice

Answers

Answer:

$85.50

Explanation:

Particulars              Amount       Amount     Difference

Direct materials      $813,150      $877,500     $74,350

Direct labor             $215,450     $232,500     $17,050

Manufacturing OH  $1,011,500   $1,024,150    $12,650

T.V. Overheads       2040100     2134150        $94,050

Production Volume   13,900         15,000         1,100      

Variable Cost per unit                                      $85.50

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