Norris, Madson, and Howell have income ratios of 5:3:2 and capital balances of $34,000, $31,000, and $28,000 respectively. Noncash assets are sold at a gain. After creditors are paid, $103,000 of cash is available for distribution to the partners. How much cash should be paid to Madson?
Answer to relevant QuestionsBefore the final distribution of cash, account balances are: Cash $27,000; S. Shea, Capital $19,000 (Cr.); L. Seastrom, Capital $12,000 (Cr.); and M. Luthi, Capital $4,000 (Dr.). Luthi is unable to pay any of the capital ...Jaime Keller has a $41,000 capital balance in a partnership. She sells her interest to Sam Parmenter for $45,000 cash. What entry is made by the partnership for this transaction?Nabb & Fry Co. reports net income of $31,000. Interest allowances are Nabb $7,000 and Fry $5,000; salary allowances are Nabb $15,000 and Fry $10,000; the remainder is shared equally. Show the distribution of income on the ...Parsons Company wishes to liquidate the firm by distributing the company’s cash to the three partners. Prior to the distribution of cash, the company’s balances are: Cash $73,000; Oakley, Capital (Cr.) $47,000; Quaney, ...Data for Sedgwick Company are presented in E12-8.In E12-8, Sedgwick Company at December 31 has cash $20,000, noncash assets $100,000, liabilities $55,000, and the following capital balances: Floyd $45,000 and DeWitt $20,000. ...
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