Question
In: Accounting
The partnership of Winn, Xie, Yang, and Zed has the following balance sheet: Cash $ 55,000...
The partnership of Winn, Xie, Yang, and Zed has the following balance sheet:
| Cash | $ | 55,000 | Liabilities | $ | 63,000 |
| Other assets | 318,000 | Winn, capital (50% of profits and losses) | 85,000 | ||
| Xie, capital (30%) | 105,000 | ||||
| Yang, capital (10%) | 65,000 | ||||
| Zed, capital (10%) | 55,000 | ||||
Zed is personally insolvent, and one of his creditors is considering suing the partnership for the $3,000 that is currently owed. The creditor realizes that this litigation could result in partnership liquidation and does not wish to force such an extreme action unless Zed is reasonably sure of obtaining at least $3,000 from the liquidation.
Determine the amount for which the partnership must sell the other assets to ensure that Zed receives $3,000 from the liquidation. Liquidation expenses are expected to be $40,000.
Solutions
ekkarill92 answered 7 months agoRelated Solutions
The partnership of Winn, Xie, Yang, and Zed has the following balance sheet: Cash $ 39,000...
The partnership of Winn, Xie, Yang, and Zed has the following
balance sheet:
Cash
$
39,000
Liabilities
$
51,000
Other assets
256,000
Winn, capital (50% of profits
and losses)
69,000
Xie, capital (30%)
87,000
Yang, capital (10%)
49,000
Zed, capital (10%)
39,000
Zed is personally insolvent, and one of his creditors is
considering suing the partnership for the $14,000 that is currently
owed. The creditor realizes that this litigation could result in
partnership liquidation and does not wish to force...
The partnership of Winn, Xie, Yang, and Zed has the following balance sheet: Cash $ 39,000...
The partnership of Winn, Xie, Yang, and Zed has the following
balance sheet:
Cash
$
39,000
Liabilities
$
51,000
Other assets
256,000
Winn, capital (50% of profits
and losses)
69,000
Xie, capital (30%)
87,000
Yang, capital (10%)
49,000
Zed, capital (10%)
39,000
Zed is personally insolvent, and one of his creditors is
considering suing the partnership for the $14,000 that is currently
owed. The creditor realizes that this litigation could result in
partnership liquidation and does not wish to force...
The partnership of Winn, Xie, Yang, and Zed has the following balance sheet: Cash $ 34,000...
The partnership of Winn, Xie, Yang, and Zed has the following
balance sheet:
Cash
$
34,000
Liabilities
$
45,000
Other assets
240,000
Winn, capital (50% of profits and losses)
64,000
Xie, capital (30%)
87,000
Yang, capital (10%)
44,000
Zed, capital (10%)
34,000
Zed is personally insolvent, and one of his creditors is
considering suing the partnership for the $9,000 that is currently
owed. The creditor realizes that this litigation could result in
partnership liquidation and does not wish to force...
The partnership of Winn, Xie, Yang, and Zed has the following balance sheet: Cash $ 34,000...
The partnership of Winn, Xie, Yang, and Zed has the following
balance sheet:
Cash
$
34,000
Liabilities
$
45,000
Other assets
240,000
Winn, capital (50% of profits and losses)
64,000
Xie, capital (30%)
87,000
Yang, capital (10%)
44,000
Zed, capital (10%)
34,000
Zed is personally insolvent, and one of his creditors is
considering suing the partnership for the $3,000 that is currently
owed. The creditor realizes that this litigation could result in
partnership liquidation and does not wish to force...
The partnership of Winn, Xie, Yang, and Zed has the following balance sheet: Cash $ 33,000...
The partnership of Winn, Xie, Yang, and Zed has the following
balance sheet:
Cash
$
33,000
Liabilities
$
36,000
Other assets
223,000
Winn, capital (50% of profits and losses)
63,000
Xie, capital (30%)
81,000
Yang, capital (10%)
43,000
Zed, capital (10%)
33,000
Zed is personally insolvent, and one of his creditors is
considering suing the partnership for the $5,000 that is currently
owed. The creditor realizes that this litigation could result in
partnership liquidation and does not wish to force...
he partnership of Winn, Xie, Yang, and Zed has the following balance sheet: Cash $ 35,000...
he partnership of Winn, Xie, Yang, and Zed has the following
balance sheet:
Cash
$
35,000
Liabilities
$
47,000
Other assets
241,000
Winn, capital (50% of profits and losses)
65,000
Xie, capital (30%)
84,000
Yang, capital (10%)
45,000
Zed, capital (10%)
35,000
Zed is personally insolvent, and one of his creditors is
considering suing the partnership for the $4,000 that is currently
owed. The creditor realizes that this litigation could result in
partnership liquidation and does not wish to force...
Squash Delight Inc. has the following balance sheet: Assets Cash $ 55,000 Accounts receivable 275,000 Fixed...
Squash Delight Inc. has the following balance sheet:
Assets
Cash
$
55,000
Accounts
receivable
275,000
Fixed assets
870,000
Total
assets
$
1,200,000
Liabilities
Accounts payable
$
250,000
Notes payable
58,000
Common stock (100,000
shares @ $2 par)
200,000
Capital in excess of
par
100,000
Retained earnings
592,000
Total
liabilities & owners' equity
$
1,200,000
The firm’s stock sells for $12 a share.
a. Show the effect on the capital accounts of a
two-for-one stock split. (Do not round intermediate
calculations...
The following is the current balance sheet for a local partnership of doctors: Cash and current...
The following is the current balance sheet for a local
partnership of doctors:
Cash and current assets
$
37,000
Liabilities
$
44,000
Land
152,000
A, capital
24,000
Building and equipment (net)
141,000
B, capital
44,000
C, capital
94,000
D, capital
124,000
Totals
$
330,000
Totals
$
330,000
The following questions represent independent
situations:
E is going to invest enough money in this partnership to receive
a 20 percent interest. No goodwill or bonus is to be recorded. How
much should...
The following is the current balance sheet for a local partnership of doctors: Cash and current...
The following is the current balance sheet for a local
partnership of doctors:
Cash and current
assets
$
67,000
Liabilities
$
74,000
Land
232,000
A, capital
54,000
Building and
equipment (net)
181,000
B, capital
74,000
C, capital
124,000
D, capital
154,000
Totals
$
480,000
Totals
$
480,000
The following questions represent independent
situations:
E is going to invest enough money in this partnership to receive
a 20 percent interest. No goodwill or bonus is to be recorded. How
much should...
The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: Cash...
The Drysdale, Koufax, and Marichal partnership has the following
balance sheet immediately prior to liquidation:
Cash
$
44,000
Liabilities
$
44,500
Noncash assets
244,000
Drysdale, loan
27,500
Drysdale, capital (50%)
82,000
Koufax, capital (30%)
72,000
Marichal, capital (20%)
62,000
a. Liquidation expenses are estimated to be $23,000. Prepare a
predistribution schedule to guide the distribution of cash.
b. Assume that assets costing $82,000 are sold for $64,000. How
is the available cash to be divided?
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