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In: Accounting
Sameer , Daoud and Narmen owned partnership has total assets of $480,000 ( cash 100000, account...
Sameer , Daoud and Narmen owned partnership has total assets of $480,000 ( cash 100000, account receivables 100000, inventory 60000, and equipment 220000). Capital balances for partners Sameer , Daoud and Narmen are $130,000, $50,000, and $120,000, respectively. The profit/loss percentages for partners Sameer , Daoud and Narmen are 50%,20%, and 30%, respectively. Included in the liabilities is a $20,000 loan payable to Sameer and in receivables loan from Daoud 10,000. The partnership has elected to liquidate over the next several months and expect to pay $20,000 as liquidation expenses. Required: 1) Prepare vulnerability ranking, losses absorption and cash distribution plane 2) Prepare cash distribution schedule 3) Assuming total account receivables was sold for 80,000 in the first month, in second month equipment with a book value of $120,000 was sold for $90,000 and in the third month all inventory sold for 50,000; prepare statement of realization and liquidations with necessary entries.
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Expert Solution
The answer to the above question has been solved through highest relative capital method.
ekkarill92 answered 1 year agoRelated Solutions
Sameer , Daoud and Narmen owned partnership has total assets of $480,000 ( cash 100000, account...
Sameer , Daoud and Narmen owned partnership has total assets of
$480,000 ( cash 100000, account receivables 100000, inventory
60000, and equipment 220000). Capital balances for partners Sameer
, Daoud and Narmen are $130,000, $50,000, and $120,000,
respectively. The profit/loss percentages for partners Sameer ,
Daoud and Narmen are 50%,20%, and 30%, respectively. Included in
the liabilities is a $20,000 loan payable to Sameer and in
receivables loan from Daoud 10,000. The partnership has elected to
liquidate over the next...
A partnership has the following account balances at the date of termination: Cash, $96,000; Noncash Assets,...
A partnership has the following account balances at the date of
termination: Cash, $96,000; Noncash Assets, $740,000; Liabilities,
$494,000; Bell, capital (50 percent of profits and losses),
$160,000; Mann, capital (30 percent), $110,000; Scott, capital (20
percent), $72,000. The following transactions occur during
liquidation:
Noncash assets with a book value of $580,000 are sold for
$480,000 in cash.
A creditor reduces his claim against the partnership from
$160,000 to $130,000, and this amount is paid in cash.
The remaining noncash...
A partnership has the following account balances: Cash, $95,000; Other Assets, $665,000; Liabilities, $305,000; Nixon (50...
A partnership has the following account balances: Cash, $95,000;
Other Assets, $665,000; Liabilities, $305,000; Nixon (50 percent of
profits and losses), $215,000; Cleveland (30 percent), $150,000;
Pierce (20 percent), $90,000. The company liquidates, and $20,500
becomes available to the partners. Who gets the $20,500? Determine
how much of this amount should be distributed to each
partner.(Do not round intermediate
calculations.)
A partnership has the following account balances: Cash, $76,000; Other Assets, $570,000; Liabilities, $258,000; Nixon (50...
A partnership has the following account balances: Cash, $76,000;
Other Assets, $570,000; Liabilities, $258,000; Nixon (50 percent of
profits and losses), $180,000; Cleveland (30 percent), $130,000;
Pierce (20 percent), $78,000. The company liquidates, and $16,500
becomes available to the partners. Who gets the $16,500? Determine
how much of this amount should be distributed to each partner. (Do
not round intermediate calculations.)
Nixon Cleveland Pierce
Safe payments:
A partnership has liquidated all assets but still reports the following account balances: Beck, loan $...
A partnership has liquidated all assets but still reports the
following account balances:
Beck, loan
$
9,000
Cisneros, capital (40%)
4,800
Beck, capital (20%)
(9,600
)
(deficit)
Sadak, capital (10%)
(10,400
)
(deficit)
Emerson, capital (20%)
15,600
Page, capital (10%)
(15,000
)
(deficit)
The partners split profits and losses as follows: Cisneros, 40
percent; Beck, 20 percent; Sadak, 10 percent; Emerson, 20 percent;
and Page 10 percent.
Assuming that all partners are personally insolvent except for
Sadak and Emerson, how...
A partnership has liquidated all assets but still reports the following account balances: The partners split...
A partnership has liquidated all assets but still reports the following account balances:
The partners split profits and losses as follows: Cisneros, 40 percent; Beck, 20 percent; Sadak, 10 percent; Emerson, 20 percent; and Page 10 percent.
Assuming that all partners are personally insolvent except for Sadak and Emerson, how much cash must Sadak now contribute to this partnership?
A partnership has liquidated all assets but still reports the following account balances: Beck, loan $...
A partnership has liquidated all assets but still reports the
following account balances:
Beck, loan
$
5,500
Cisneros, capital (40%)
3,600
Beck, capital (20%)
(12,200
)
(deficit)
Sadak, capital (10%)
(8,200
)
(deficit)
Emerson, capital (20%)
15,500
Page, capital (10%)
(6,200
)
(deficit)
The partners split profits and losses as follows: Cisneros, 40
percent; Beck, 20 percent; Sadak, 10 percent; Emerson, 20 percent;
and Page 10 percent.
Assuming that all partners are personally insolvent except for
Sadak and Emerson, how...
A partnership has liquidated all assets but still reports the following account balances: Beck, loan $...
A partnership has liquidated all assets but still reports the
following account balances:
Beck, loan
$
6,000
Cisneros, capital (40%)
3,900
Beck, capital (20%)
(12,300
)
(deficit)
Sadak, capital (10%)
(8,300
)
(deficit)
Emerson, capital (20%)
15,000
Page, capital (10%)
(6,300
)
(deficit)
The partners split profits and losses as follows: Cisneros, 40
percent; Beck, 20 percent; Sadak, 10 percent; Emerson, 20 percent;
and Page 10 percent.
Assuming that all partners are personally insolvent except for
Sadak and Emerson, how...
A partnership has liquidated all assets but still reports the following account balances: Beck, loan $...
A partnership has
liquidated all assets but still reports the following account
balances:
Beck, loan
$
6,000
Cisneros,
capital (40%)
3,600
Beck, capital
(20%)
(13,200
)
(deficit)
Sadak, capital
(10%)
(9,200
)
(deficit)
Emerson, capital
(20%)
18,000
Page, capital
(10%)
(7,200
)
(deficit)
The partners split
profits and losses as follows: Cisneros, 40 percent; Beck, 20
percent; Sadak, 10 percent; Emerson, 20 percent; and Page 10
percent.
Assuming that all
partners are personally insolvent except for Sadak and Emerson, how...
Oriole Company is owned by Rachel Oriole. The company had total assets of $885,000 and total...
Oriole Company is owned by Rachel Oriole. The company had total
assets of $885,000 and total liabilities of $500,000 at the
beginning of the year. Answer each of the following independent
questions:
(a) During the year, total assets increased by
$121,000 and total liabilities decreased by $77,000. What is the
amount of owner's equity at the end of the year?
Owner's equity
$
(b) Total liabilities decreased by $87,000 during
the year. The company incurred a loss of $60,000. R....
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