Shrek, Donkey, and Fiona are partners in SDF and share profits and losses in the ratio of
Fantastic news! We've Found the answer you've been seeking!
Question:
Shrek, Donkey, and Fiona are partners in SDF and share profits and losses in the ratio of 5:3:2, respectively. The partnership has cash of $10,000 and noncash assets of $90,000 when they decide to liquidate. Liabilities at the time of liquidation are $40,000, including a note payable to Fiona of $5,000. The partner capital accounts are Shrek $40,000, Donkey $ 15,000, and Fiona $5,000. The non-cash assets of the partnership were sold for $26,000. The liabilities other than the note payable to Fiona are paid. Fiona is personally insolvent. Shrek and Donkey are not insolvent. Under the circumstances
Shrek will receive a distribution in liquidation of $6,250. |
Fiona will be required to contribute $2,800 to the partnership. |
Donkey will be required to contribute $4,200 to the partnership. |
Shrek will receive a distribution in liquidation of $8,000. |
Related Book For
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
Posted Date: