Question: Fred, Ethel, and Lucy have decided to liquidate their partnership. Account balances on January 1, 2011, are as follows: The partners agree to keep a

Fred, Ethel, and Lucy have decided to liquidate their partnership. Account balances on January 1, 2011, are as follows:

Cash Other assets Accounts payable Fred capital (30%) Ethel capital (30%) Lucy

The partners agree to keep a $10,000 contingency fund and to distribute available cashimmediately.

Cash Other assets Accounts payable Fred capital (30%) Ethel capital (30%) Lucy capital (40%) $ 40,000 $120,000 85,000 $240,000 90.000 $240,000

Step by Step Solution

★★★★★

3.30 Rating (182 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

30 Fred 30 Ethel 40 Lucy January 1 balances 85000 25000 9... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

55-B-A-P (116).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

Q:

Partners Maness and Joiner have decided to liquidate their business. The ledger shows the following account balances: Maness and Joiner share profits and losses in an 8:2 ratio. During the first...

Q:

Partners Maness and Joiner have decided to liquidate their business. The ledger shows the following account balances: Maness and Joiner share profits and losses in an 8:2 ratio. During the first...

Q:

The partners of LR Company have decided to liquidate their business. Noncash assets were sold for $125,000. The income ratios of the partners Cisneros, Gunselman, and Forren are 3:2:3, respectively....

Q:

Problem 1 ( Recommended: review slides 6 - 2 3 ) The partnership of Folly and Frill is in the process of liquidation. On January 1 , 2 0 2 5 , the books show account balances as follows: Assets...

Q:

Fred, Ethel, and Lucy have decided to liquidate their partnership. Account balances on January 1, 2021 are as follows: Cash 120,000 Accounts Payable 40,000 Other assets 120,000 Fred Capital (30%)...

Q:

Fred, Ethel, and Lucy have decided to liquidate their partnership. Account balances on January 1, 2021 are as follows: Cash 120,000 Accounts Payable 40,000 Other assets 120,000 Fred Capital (30%)...

Q:

Problem 2 ( Recommended: review slides 2 4 - 3 2 ) Fred, Ethel, and Lucy have decided to liquidate their partnership. Account balances on January 1 , 2 0 2 5 are as follows: Assets Liabilities and...

Q:

Problem 2 ( Recommended: review slides 2 4 - 3 2 ) Fred, Ethel, and Lucy have decided to liquidate their partnership. Account balances on January 1 , 2 0 2 5 are as follows: Assets Liabilities and...

Q:

Question Attached! Fred, Ethel, and Lucy have decided to liquidate their partnership. Account balances on January 1, 2021 are as follows: Cash 120,000 Accounts Payable 40,000 Other assets 120,000...

Q:

Fed, Ela, and Luc have decided to liquidate their partnership. Account balances on January 1, 2011, are as follows: The partners agree to keep a $10,000 contingency fund and to distribute available...

Q:

Each workstation in the final assembly area of a large manufacturing facility has a backlog area to hold units that are to be processed. A production engineer believes there could be a relationship...

Q:

The Georgia Ceramic Company has an automatic glaze sprayer that has been used for the past 10 years. The sprayer can be used for another 10 years and will have a zero salvage value at that time. The...

Q:

Which of the following is most likely to decrease market efficiency? A q , B Enforcing fair markets c Permilting foreign investment i Search

Q:

What are the main challenges facing the conservation of peatlands in Ireland? With reference to the value of peatlands within the biosphere and to society, suggest a strategy for their conservation...

Q:

What are advantages and disadvantages of microalgae and cyanobacteria as biofactories?

Q:

Explain the principle causes of biodiversity loss, with a focus on the impact of agriculture. Your answer should also discuss possible ways of mitigating biodiversity loss and how these options may...

Q:

In the context of a selective breeding programme, what are the main advantages and disadvantages between terrestrial and aquatic organisms?

Q:

Discuss the effects of UV radiation on marine algae. Distinguish in your answer between algae living in different latitudes and different depths within the water column. What defense strategies have...

Q:

(a) Draw the structure of the product that is formed when the following compound is heated with one equivalent of sodium methoxide in methanol. Explain your reasoning. (b) What would the product be...

Q:

1. Fay had a realized foreign exchange loss of $15,000 for the year ended December 31, 2011, and must also determine whether the following items will require year-end adjustment: Fay had an $8,000...

Q:

What is an operating segment?

Q:

What is a reportable segment according to FASB ASC Topic 280? What criteria are used in determining what operating segments are also reportable segments?

Q:

Among 20 golden hamster litters recorded, there was a sample mean of x = 7.72 baby hamsters, with a sample standard deviation of s = 2.5 hamsters per liter. Create a 98% confidence interval for the...

Q:

Find solutions 4. Consider a discrete-time Markov chain with the following probability transition matrix 0 0 0 0 7 1-3-y P = 1-I-VVO T 0 0 1 0 Is it possible to choose values for a and y so that the...

Q:

In 1880 , five aboriginal trackers were each promised the equivalent of 100 Australian dollars for helping to capture the notorious outlaw Ned Kelley. In 1996, the granddaughters of two of the...