Problem 15-6 (Algo) (LO 15-4) A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are Bell, capital Hardy, capital Dennard, capital Suddath, capital Bell's creditors have filed a $40,000 claim against the partnership's assets. The partnership currently holds assets of $490,000 and liabilities of $193,500. An independent appraiser indicates that the assets can be sold for $285,000. Required: Prepare a statement of partnership liquidation to determine the amount of cash that Bell would receive from the sale of partnership assets. Note: Amounts to be deducted should be entered with a minus sign. Balances Sale of assets Subtotal Pay liabilities Subtotal Allocate deficit Subtotal Distribute cash Ending balances $ $ $ 98,500 84,000 15,000 99,000 EA Cash BELL, HARDY, DENNARD, AND SUDDATH PARTNERSHIP Statement of Partnership Liquidation (Hypothetical) Assets 0 0 $ 0 $ FA 0 6A 0 Liabilities 0 $ 0 0 $ FA CHA 0 0 $ 0 Bell, Capital Hardy, Capital 40% 30% 0 $ 6A EA 0 0 $ 0 $ 6A 0 0 0 0 Dennard, Capital 20% $ FA $ CHA 0 0 Suddath, Capital 10% 0 $ 0 $ EA EA 0

Problem 15-6 (Algo) (LO 15-4) A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are Bell, capital Hardy, capital Dennard, capital Suddath, capital Bell's creditors have filed a $40,000 claim against the partnership's assets. The partnership currently holds assets of $490,000 and liabilities of $193,500. An independent appraiser indicates that the assets can be sold for $285,000. Required: Prepare a statement of partnership liquidation to determine the amount of cash that Bell would receive from the sale of partnership assets. Note: Amounts to be deducted should be entered with a minus sign. Balances Sale of assets Subtotal Pay liabilities Subtotal Allocate deficit Subtotal Distribute cash Ending balances $ $ $ 98,500 84,000 15,000 99,000 EA Cash BELL, HARDY, DENNARD, AND SUDDATH PARTNERSHIP Statement of Partnership Liquidation (Hypothetical) Assets 0 0 $ 0 $ FA 0 6A 0 Liabilities 0 $ 0 0 $ FA CHA 0 0 $ 0 Bell, Capital Hardy, Capital 40% 30% 0 $ 6A EA 0 0 $ 0 $ 6A 0 0 0 0 Dennard, Capital 20% $ FA $ CHA 0 0 Suddath, Capital 10% 0 $ 0 $ EA EA 0

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter21: Partnerships

Section: Chapter Questions

Problem 65P

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A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are Bell, capital Hardy, capital Dennard, capital Suddath, capital $72, 500 65.000 11,000 89,000 Bell's creditors have filed a $30,000 claim against the partnership's assets. The partnership currently holds assets of $390,000 and liabilities of $152,500. If the assets can be sold for $235,000, what is the minimum amount that Bell's creditors would receive? Multiple Choice $10.500 $500 $0 $2,500
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A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are Bell, capital Hardy, capital Dennard, capital Suddath, capital Bell's creditors have filed a $31,000 claim against the partnership's assets. The partnership currently holds assets of $400,000 and liabilities of $158,000. An independent appraiser indicates that the assets can be sold for $240,000. $ 76,000 66,000 10,000 90,000 Required: Prepare a statement of partnership liquidation to determine the amount of cash that Bell would receive from the sale of partnership assets. Note: Amounts to be deducted should be entered with a minus sign. Balances Sale of assets Subtotal Pay liabilities Subtotal Allocate deficit Subtotal Distribute cash Ending balances Cash BELL, HARDY, DENNARD, AND SUDDATH PARTNERSHIP Statement of Partnership Liquidation (Hypothetical) Assets Liabilities…
A partnership is considering possible liquidation because one of the partners (Bell) is personally insolvent. Profits and losses are divided on a 4:3:2:1 basis, respectively. Capital balances at the current time are Bell, capital $ 108,500 Hardy, capital 92,000 Dennard, capital 11,000 Suddath, capital 103,000 Bell’s creditors have filed a $44,000 claim against the partnership’s assets. The partnership currently holds assets of $530,000 and liabilities of $215,500. If the assets can be sold for $305,000, what is the minimum amount that Bell’s creditors would receive?
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