Question
In: Accounting
A local dental partnership has been liquidated and the final capital balances are as follows:
A local dental partnership has been liquidated and the final capital balances are as follows:
Atkinson, capital (40% of all profits and losses) $ 73,000
Kaporale, capital (30%) 33,080
Dennsmore, capital (20%) (48,000)
Rasputin, capital (10%) (58,000)
If Rasputin contributes additional cash of $22,000 to the partnership, what should happen to it?
Solutions
Expert Solution
Answer:
| Atkinson | Kaporale | Dennsmore | Rasputin | |
| Cash Distribution | $22,000 | $0 | $0 | $0 |
Explanation:
| Atkinson | Kaporale | Dennsmore | Rasputin | |
|---|---|---|---|---|
| Reported balances | $73,000 | $33,000 | $(48,000) | $(58,000) |
| Capital Contribution | + $22,000 | |||
| Adjusted Balances | $73,000 | $33,000 | $(48,000) | $(36,000) |
| Potential loss from Dennsmore and Rasputin ($84,000) split on 4:3 basis | $(48,000) | $(36,000) | $48,000 | $36,000 |
| Adjusted Balances | $25,000 | $(3,000) | 0 | 0 |
| Potential loss from Kaporale ($3,000) | $(3,000) | $3,000 | ||
| Cash distribution | $22,0000 | $0 | $0 | $0 |
i.e., The whole amount of $22,000 should go to Atkinson.
ekkarill92 answered 2 years agoRelated Solutions
A local dental partnership has been liquidated and the final capital balances are as follows: Atkinson,...
A local dental partnership has been liquidated and the final capital balances are as follows:
Atkinson, capital (40% of all profits and losses) $ 68,000
Kaporale, capital (30%) 28,000
Dennsmore, capital (20%) (50,000 )
Rasputin, capital (10%) (46,000 )
If Rasputin contributes additional cash of $26,000 to the partnership, what should happen to it? (Do not round intermediate calculations.)
ATKINSON
KAPORALE
DENNSMORE
RASPUTIN
CASH DISTRIBUTION
A local dental partnership has been liquidated and the final capital balances are as follows:Atkinson, capital...
A local dental partnership has been liquidated and the final capital balances are as follows:Atkinson, capital (40% of all profits and losses) . . . . . . . . . . . . . . . . $ 70,000Kaporale, capital (30%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000Dennsmore, capital (20%) ....
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...
KKG Partnership established by Kris, Ken and Gres has been agreed to be liquidated as of...
KKG Partnership established by Kris, Ken and Gres has
been agreed to be liquidated as of January 1, 2017. Financial
position shortly before liquidation as follows (in thousands of
rupiah):
Cash
160.000
Liabilities
200.000
Inventory
440.000
Loan from Gres
100.000
Plant Assets
1.000.000
Kris's Capital (40%)
500.000
Other Assets
400.000
Ken's Capital (30%)
600.000
Gres's Capital (30%)
600.000
Total
2.000.000
Total
2.000.000
The liquidation process is carried out gradually for three months,
namely:
January : Plant assets with a book...
A local partnership is to be liquidated. Commissions and other liquidation expenses are expected to total...
A local partnership is to be liquidated. Commissions and other
liquidation expenses are expected to total $19,000. The business’s
balance sheet prior to the commencement of liquidation is as
follows:
Cash
$
27,000
Liabilities
$
40,000
Noncash assets
254,000
Simpson, capital (20%)
18,000
Hart, capital (40%)
40,000
Bobb, capital (20%)
48,000
Reidl, capital (20%)
135,000
Total assets
$
281,000
Total liabilities and capital
$
281,000
Prepare a predistribution plan for this partnership.
2. The capital balances of the DEF Partnership are as follows: Danielson $180,000 Eklund 95,000 Forsberg...
2. The capital balances of the DEF Partnership are as
follows:
Danielson $180,000
Eklund 95,000
Forsberg 150,000
Total $425,000
The partners' income sharing ratio is: Danielson, 25%; Eklund,
45%; Forsberg, 30%. Assume the partnership’s identifiable net
assets are carried at amounts approximating fair value.
Case A:
Assume Gustafson joins the partnership by contributing $125,000
to the partnership for
a 20% interest in partnership capital.
Case B:
Now assume Gustafson paid $90,000 for a 20% interest in
partnership capital.
Instruction: For...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- 1) Alternative compiled code sequence using instructions in classes A, B, C. What is the average...
- An asset is purchased on January 1 for $48,700. It is expected to have a useful...
- Do we have any online or offline tool to convert c and cpp programs into MIPS...
- -what is the pH of HCl 0,1M and NaCl 0,1M mixed together solution? -What is the...
- function X=extractDWT(x_train,startS,endS,wStep,wRange) % x_train = input signal % startS = from second % endS = end...
- Do you agree that Social Loafing is similar to Theory X. Give an example to support...
- Computing Cost of Goods Sold and Ending Inventory. Bartov Corporation reports the following beginning inventory and...
ADVERTISEMENT