Solution to Chapter 16 Sample Quiz

Solution to Chapter 16 Sample Quiz - Indiana University of...

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Indiana University of Pennsylvania Department of Accounting ACCT 401/501: Advanced Accounting Solution to Sample Quiz for Chapter on Partnership Liquidation Part I. SOLUTIONS Multiple Choice Questions 1. b ($70,000 Ritz capital + $50,000 Sally capital + $30,000 Tracy capital + $25,000 Loan from Sally - $30,000 Loan to Ritz) 2. a ($20,000 beginning balance + $15,000 cash collected + $20,000 for inventory sold - $35,000 of accounts payable - $10,000 for expenses) 3. d Ritz Sally Tracy Total Equities,Jun 30 $ 40,000 $ 75,000 $ 30,000 $ 145,000 Inventory loss ( 10,000 ) ( 15,000 ) ( 25,000 ) ( 50,000 ) Contingency fund ( 2,000 ) ( 3,000 ) ( 5,000 ) ( 10,000 ) Subtotals 28,000 57,000 0 85,000 Possible losses on remaining assets ( 15,000 ) ( 22,500 ) ( 37,500 ) ( 75,000 ) Subtotals $ 13,000 $ 34,500 $( 37,500 ) $ 10,000 Eliminate Tracy’s Deficit ( 15,000 ) ( 22,500 ) 37,500 Subtotals ( 2,000 ) 12,000 0 10,000 Eliminate Ritz’s Deficit 2,000 ( 2,000 ) Cash distribution $ 0 $ 10,000 $ 0 $ 10,000 4. c
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5. c
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Solution to Chapter 16 Sample Quiz - Indiana University of...

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