After several years of business, Abel, Barney, and Cole are liquidating
Question # 00032473
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Updated on: 11/20/2014 05:30 AM Due on: 03/31/2015
(1) After several years of business, Abel, Barney, and Cole are liquidating. The following are post-closing account balances.Cash 18,000Inventory 73,000Other assets 157,000 Accounts Payable 61,000 Abel, Capital 50,000 Barney, Capital 50,000 Cole, Capital 87,000Non-cash assets are sold for $275,000. Profits and losses are shared equally.After all liabilities are paid, divide the remaining cash amongst the partners.
(2) The partnership of Brandon and Ryan is being liquidated. All gains and losses are shared in a 3:1 ratio, respectively. Before liquidation, their balance sheet balances are as follows:Cash $10,000Other Assets 8,000Liabilities 4,000Brandon, Capital 7,000Ryan, Capital 7,000a. If the Other Assets are sold for $10,000, how much will each partner receive before paying liabilities and distributing the remaining assets?
b. If the Other Assets are sold for $8,000, how much will each partner receive before paying liabilities and distributing remaining assets?
(2) The partnership of Brandon and Ryan is being liquidated. All gains and losses are shared in a 3:1 ratio, respectively. Before liquidation, their balance sheet balances are as follows:Cash $10,000Other Assets 8,000Liabilities 4,000Brandon, Capital 7,000Ryan, Capital 7,000a. If the Other Assets are sold for $10,000, how much will each partner receive before paying liabilities and distributing the remaining assets?
b. If the Other Assets are sold for $8,000, how much will each partner receive before paying liabilities and distributing remaining assets?
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Rating:
/5
Solution: After several years of business, Abel, Barney, and Cole are liquidating