NAME: SECTION: Problem #12 Final Cash Distribution to Partners SCORE: PROFESSOR: The partnership of Sarabia, Selisana...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
NAME: SECTION: Problem #12 Final Cash Distribution to Partners SCORE: PROFESSOR: The partnership of Sarabia, Selisana and Gevera is about to be liquidated. All the assets have been sold for cash and the creditors have been fully paid. The capital accounts of the partners have the following balances at the date of liquidation: Sarabia Selisana Gevera P600,000 credit 240,000 debit 360,000 credit The three partners share profits and losses equally. There remains P720,000 cash for distribution to the partners. Required: Determine the manner of distribution of the remaining P720,000 under the following independent assumptions: 1. Selisana is personally insolvent. He has no personal assets. 2. Selisana is personally solvent and is willing to contribute additional funds into the partnership to cover his deficit. 3. Selisana is willing to make additional contributions but his personal assets are not sufficient to accommodate the deficit in his capital account. Only 60% of the deficiency can be covered. NAME: SECTION: Problem #12 Final Cash Distribution to Partners SCORE: PROFESSOR: The partnership of Sarabia, Selisana and Gevera is about to be liquidated. All the assets have been sold for cash and the creditors have been fully paid. The capital accounts of the partners have the following balances at the date of liquidation: Sarabia Selisana Gevera P600,000 credit 240,000 debit 360,000 credit The three partners share profits and losses equally. There remains P720,000 cash for distribution to the partners. Required: Determine the manner of distribution of the remaining P720,000 under the following independent assumptions: 1. Selisana is personally insolvent. He has no personal assets. 2. Selisana is personally solvent and is willing to contribute additional funds into the partnership to cover his deficit. 3. Selisana is willing to make additional contributions but his personal assets are not sufficient to accommodate the deficit in his capital account. Only 60% of the deficiency can be covered.
Expert Answer:
Answer rating: 100% (QA)
1 Selisana is personally insolvent He has no personal assets Computation Selisanas deficit P240000 R... View the full answer
Related Book For
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
Posted Date:
Students also viewed these accounting questions
-
Select the correct answer for each of the following questions. The balance sheet for the partnership of Joan, Charles, and Thomas, whose shares of profits and losses are 40, 50, and 10 percent,...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Pettit Printing Company has a total market value of $100 million, consisting of 1 million shares selling for $50 per share and $50 million of 10 percent perpetual bonds now selling at par. The...
-
Explain how the seven differences between goods and services would be applied to a major airline service. Provide airline examples that illustrate each difference?
-
Stetson Corporation uses the equity method to account for its ownership of 30% of the common stock of Pike Packing. During 2022, Pike reported a net income of $80,000 and declares and pays cash...
-
Barry Hannah, CPA, plans to use attributes estimation to help assess control risk for the Oxford Company's control procedures over credit sales transactions. Hannah has begun to outline main steps in...
-
Aamodt Music sold CDs to retailers and recorded sales revenue of $700,000. During 2010, retailers returned CDs to Aamodt and were granted credit of $78,000. Past experience indicates that the normal...
-
Create a class Rectangle with double attributes length and width. The default constructor should set these attributes to 1. Provide methods that calculate the rectangle's perimeter and area, as well...
-
Sarah was an aspiring entrepreneur who had just started her own online clothing store. She had spent months developing her brand and sourcing the perfect products for her target market. However,...
-
Newspapers and magazines cost more to create than they cost to purchase. How is this production model sustainable? How do publishers make up the financial difference? When and where was Tin Pan...
-
The Government of Canada recently signed new preferential trade agreement, and has agreed to pay subsidies to turkey farmers to compensate for increased competition they may face from imports. You...
-
This game is based on the Hangman's Paradox. Suppose that a judge, Player 1, sen- tences a prisoner, Player 2, to be hanged in one the next 7 days (T is an integer). Moreover, the judge tells the...
-
Q4: 444 Suppose a town only has two (2) petrol stations, United and BP. Each could choose to charge a high price or low price, as shown in the matrix below. United United charges a low price: United...
-
2. In a multi-period chain store game with 20 markets, the payoffs of all players are just like described in class with a = 2 and b= 1. All entrants originally believe that the chain store is crazy...
-
Your task is to analyze the decision made by a criminal, given the following information: Annual legal earnings = $ 16,000 Value of property stolen = $5,000 Probability of arrest (see below)...
-
Consider a bond which pays 8% coupon semi-annually which has a face value of $10 , 000 and Has 7 years to maturity. The market requires an annual interest rate of 12% on bonds of this risk What this...
-
If a process has a six-sigma capability, what is the process capability index? a. 1 b. 2 c. 6 d. 12
-
Farflung Corporation has in excess of 60 subsidiaries worldwide. It owns 65 percent of the voting common stock of Micro Company and 80 percent of the shares of Eagle Corporation. Micro sold $400,000...
-
Why not simply add a fourth part to the three-part consolidation worksheet to permit preparation of a consolidated cash flow statement?
-
The trial balance data presented in Problem P6-34 can be converted to reflect use of the cost method by inserting the following amounts in place of those presented for Randall Corporation: Investment...
-
Discuss why it is important to report significant changes in a patients condition to the treating physician.
-
Describe the various errors that can occur in the administration of medications.
-
Discuss under what circumstances a nurse has a duty to question a patients care.
Study smarter with the SolutionInn App