Use the following information for the Exercises below. [The following information applies to the questions displayed below.]
Question:
Use the following information for the Exercises below. [The following information applies to the questions displayed below.] Turner, Roth, and Lowe are partners who share income and loss in a 1:4:5 ratio (in percents: Turner, 10%; Roth, 40%; and Lowe, 50%). The partners decide to liquidate the partnership. Immediately before liquidation, the partnership balance sheet shows total assets, $140,400; total liabilities, $90,000; Turner, Capital, $3,700; Roth, Capital, $14,600; and Lowe, Capital, $32,100. Cash received from selling the assets was sufficient to repay all but $34,000 to the creditors.
a. Calculate the loss from selling the assets.
Calculate the loss from selling the assets. ( I filled in these answers not sure if they are correct)
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b. Allocate the loss from part a to the partners.
- Required B
- Required C
Allocate the loss from part a to the partners. (Losses and deficits should be indicated with a minus sign.) ( I filled in these answers not sure they are correct)
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c. Determine how much each partner should contribute to the partnership to cover any remaining capital deficiency. remaining capital deficiency.
- Required C
Determine how much each partner should contribute to the partnership to cover any remaining capital deficiency.
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Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta