4 what is the largest possible loss resulting from

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4. What is the largest possible loss resulting from the realization of partnership assetsthat the accountant estimates when preparing a safe payment schedule?a.Book value of recorded assets.b.Book value of recorded non-cash assets.c.Fair value of recorded assets.d.Fair value of recorded non-cash assets,
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Chapter 12 / Exercise 12-5B
Accounting Using Excel for Success
Reeve/Warren
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PROBLEMS1. A balance sheet for the partnership of Sanjoe, Bea, and Piolo, who share profits andlosses in the ratio 50:25:25, respectively, shows the following balances beforeliquidation:CashP72,000Other Assets357,000Liabilities120,000Sanjoe Capital132,000Bea Capital93,000Piolo Capital84,000In the first month of liquidation, certain assets were sold for P192,000. Liquidationexpenses of P6,000 were paid, liabilities amounting to P32,400 were paid. The partnersdistributed the cash available after setting aside enough cash for future liquidationexpenses. Sanjoe received P37,500 in the first month.How much cash did the partners set aside for future liquidation expenses?
2. The statement of financial position of the firm of RJ, SJ, and TJ just before liquidationshows the following:AssetsP120,000Liabilities50,000RJ, loan10,000RJ, capital22,000SJ, capital30,000TJ, capital8,000
TotalP120,000RJ, SJ, and TJ share profits 5:3:2 respectively. Certain assets are sold for P80,000.Creditors are paid in full, partners are paid P20,000, and cash of P10,000 is withheldpending future developments. How much cash is to be distributed to the partners?RJSJTJ
3. A statement of financial position for the partnership of Dy, Sy and Lee, who shareprofits in the ration of 2:1:1, shows the following balances just before liquidation:CashP12,000Other Assets59,500Liabilities20,000Dy, Capital22,000Sy, Capital15,500Lee, Capital14,000On the first month of the liquidation, certain assets are sold for P32,000. Liquidationexpenses of P1,000 are paid, and additional liquidation expenses are anticipated.Liabilities are paid amounting to P5,400, and sufficient cash is retained to insure thepayment to creditors before making payments to partners. On the first payment topartners, Dy receives P6,250.The total cash distributed to the partners in the first installment is:
c.P25,000d.P10,000The amount of cash withheld for anticipated liquidation expenses and unpaid liabilities is:a.P14,600b.P2,000c.P16,600d.P17,600
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Term
Fall
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Tags
Balance Sheet, Ratio, Trigraph, partner
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The document you are viewing contains questions related to this textbook.
Accounting Using Excel for Success
The document you are viewing contains questions related to this textbook.
Chapter 12 / Exercise 12-5B
Accounting Using Excel for Success
Reeve/Warren
Expert Verified

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