Bracken, Louden, and Menser, who share profits and losses in a ratio of 5:3:3, respectively are...

Bracken, Louden, and Menser, who share profits and losses in a ratio of 5:3:3, respectively are partners in a home decorating business that has not been able to generate the income the partners had hoped for. They have decided to liquidate the business and have sold all assets except for their decorating equipment. All partnership liabilities have been settled and all the partners are personally insolvent. The decorating equipment has a book value of $51,100, and the partners have capital account balances as follows: Bracken, capital $ 35,700 Louden, capital 5,200 Menser, capital 10,200 Required: Determine the amount of cash each partner will receive as a liquidating distribution if the decorating equipment is sold for the amount stated in each of the following independent cases: (Do not round intermediate calculations.)

a. $39,000

	Capital Balances
	Bracken	Louden	Menser
Final distribution of cash

b. $29,100

	Capital Balances
	Bracken	Louden	Menser
Final distribution of cash

c. $18,100

	Capital Balances
	Bracken	Louden	Menser
Final distribution of cash

Expert Solution

ekkarill92 answered 4 months ago

Bracken, Louden, and Menser, who share profits and losses in a ratio of 4:3:3, respectively are...

Bracken, Louden, and Menser, who share profits and losses in a ratio of 4:3:3, respectively are partners in a home decorating business that has not been able to generate the income the partners had hoped for. They have decided to liquidate the business and have sold all assets except for their decorating equipment. All partnership liabilities have been settled and all the partners are personally insolvent. The decorating equipment has a book value of $58,000, and the partners have capital...

JK and MN are partners who share income and losses in the ratio of 3:2, respectively....

JK and MN are partners who share income and losses in the ratio of 3:2, respectively. On May 31, their capital balances were: JK $220,000 and MN $150,000. On that date, they agree to admit ST as a partner with a one quarter capital interest. ST invests $180,000 in the partnership under the bonus method: a. What is JK’s capital balance after ST’s admittance? b. What is MN’s capital balance after ST’s admittance c. What capital amount is recorded for ST

Nancy Conradt and Chris Russell are partners who share profits and losses in the ratio of...

Nancy Conradt and Chris Russell are partners who share profits and losses in the ratio of 60:40, respectively. On December 31, 2019, they decide that Russell will sell one-half of his interest to Pam Ortega. At that time, the balances of the capital accounts are $640,000 for Conradt and $840,000 for Russell. The partners agree that before the new partner is admitted, certain assets should be revalued. These assets include merchandise inventory carried at $425,200 revalued at $413,000, and a...

PHILIP, CALVIN, AND AARON ARE PARTNERS WHO SHARE PROFITS AND LOSSES 50%, 30%, AND 20%, RESPECTIVELY....

PHILIP, CALVIN, AND AARON ARE PARTNERS WHO SHARE PROFITS AND LOSSES 50%, 30%, AND 20%, RESPECTIVELY. THEIR CAPITAL BALANCES ARE $150 000, $90 000, AND $60 000 RESPECTIVELY. INSTRUCTIONS: ASSUME JAMES JOINS THE PARTNERSHIP BY INVESTING $120 000 FOR A 25% INTEREST. WHAT ARE THE CAPITAL BALANCES OF ALL PARTNERS AFTER THE ADMISSION OF JAMES? SHOW ALL SUPPORTING CALCULATIONS. ASSUME INSTEAD THAT AARON LEAVES THE PARTNERSHIP. AARON IS PAID $180 000. WHAT ARE THE CAPITAL BALANCES OF ALL PARTNERS AFTER...

Larry, Moe, and Curly who share in income and losses in the ratio of 2:3:5, decided...

Larry, Moe, and Curly who share in income and losses in the ratio of 2:3:5, decided to discontinue operations as of April 30, 2013, and liquidate their partnership. After the accounts were closed on April 30, 2013, the following trial balance was prepared: Larry, Moe, and Curly Post-Closing Trial Balance April 30, 2013 DEBIT Cash 8,000 Noncash Assets 107,800 CREDIT Liabilities 35,700 Larry, Capital 13,140 Moe, Capital 25,110 Curly, Capital 41,850 Totals: $115,800 $115,800 Between May 1 and May 18,...

Adams, Peters, and Blake share profits and losses for their APB Partnership in a ratio of...

Adams, Peters, and Blake share profits and losses for their APB Partnership in a ratio of 2:3:5. When they decide to liquidate, the balance sheet is as follows: Assets Liabilities and Equities Cash $ 44,000 Liabilities $ 48,000 Adams, Loan 10,800 Adams, Capital 59,400 Other Assets 208,000 Peters, Capital 81,000 Blake, Capital 74,400 Total Assets $ 262,800 Total Liabilities & Equities $ 262,800 Liquidation expenses are expected to be negligible. No interest accrues on loans with partners after termination of...

Anna and Bess share partnership profits and losses at 60% and 40%, respectively. The partners agree...

Anna and Bess share partnership profits and losses at 60% and 40%, respectively. The partners agree to admit Cal into the partnership for a 50% interest in capital and earnings. Capital accounts immediately before the admission of Cal are: Anna (60%) $ 300,000 Bess (40%) 300,000 Total $ 600,000 Part 1: Prepare the journal entry(s) for the admission of Cal to the partnership, assuming Cal invested $400,000 for the ownership interest and that this is a fair price for that...

Togbi and Mama were partners sharing profits and losses in the ratio 2:1 respectively. The following...

Togbi and Mama were partners sharing profits and losses in the ratio 2:1 respectively. The following trial balance was extracted from their books on 31st December, 2004 Details GH¢ GH¢ Capital Accounts: Togbi 14,000 Mama 7,000 Drawings Accounts: Togbi 3,400 Mama 2,200 Current Accounts: Togbi 700 Mama 500 Office equipment at cost 1,144 Stock in trade (1/1/2004) 10,000 Trade Debtors and creditors 8,100 6,175 Purchases and sales 76,000 102,000 Freehold property 9,250 Wages and salaries 12,727 Rates...

A, B are two partners sharing profits and losses in the ratio of 3:1

A, B are two partners sharing profits and losses in the ratio of 3:1. They admit K as a partner and he pays Rs. 30,000 as capital. The new ratio is to be 3:1:1. The goodwill of the firm is to be based on 3 years’ purchase of the average 4 years’ profits which are Rs. 15,000, 12,000, 18,000, 19,000.Required: Show the journal entries, if: (A) K pays for the goodwill in cash. (B) He is unable to bring the...

A B and C share profits in the ratio 2:3:5 in a partnership and have capital...

A B and C share profits in the ratio 2:3:5 in a partnership and have capital balance of $100000, 60000 and 40000 respectively prepare the journal entries necessary to admit D to the partnership under each of the following separete cases: A. D buy 40% of A for 50000 B. D invests sufficient cash to receive a 20% interest C. D invests $80000for a 1/4 interest. goodwill is to be rcorded D. D invests 40000 for a 1/4 interest. The...

Question