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Blizzard [7]
3 years ago
15

Bill, Page, Larry, and Scott have decided to terminate their partnership. The partnership's balance sheet at the time they decid

e to wind up is as follows: Cash $ 100,000 Accounts payable $ 100,000 Noncash Assets 300,000 Bill, Capital 25,000 Page, Capital 110,000 Larry, Capital 100,000 Scott, Capital 65,000 $ 400,000 Total $ 400,000 During the winding up of the partnership, the other assets are sold for $150,000 and the accounts payable are paid. Page and Larry are personally solvent, but Bill and Scott are personally insolvent. The partners share profits and losses in the ratio of 3:2:1:4. Based on the preceding information, what amounts will be distributed to Page and Larry upon liquidation of the partnership? Page Larry
A) $ 0 $ 0
B) $ 80,000 $ 85,000
C) $ 74,286 $ 82,143
D) $ 70,000 $ 80,000
Business
1 answer:
WARRIOR [948]3 years ago
7 0

Answer:The answer is $0 $0

Explanation:

The entry in the Balance sheet

Dr : capital Bill $25,000, page $110,000,Larry $100,000, Scot $65,000, Account payable $100,000 , Total Dr $400,000 Cr : Non cash asset $300,000, cash $ 100,000, Total Cr $400,000

The entry in the Realisation Account will be

Dr: sundry Asset $400,000, Cr : proceed from sale of asset $150,000, Balance c/d $250,000 , Share of the loss Bill 3/10 × 250,000 = $75,000, Page 2/10 × 250,000 = $50,000, Larry 1/10 × 250,000 = $25,000, Scot 4/10 × 250,000 = $100,000Total Dr : $400,000, Total Cr :$400,000

The entry in the capital Account of the partners will be

Bill Dr: share of loss $75,000, Total Dr:$75,000 Cr : Balance b/d $25,000,Balance c/d $50,000, Total Cr: $75,000

Page Dr: share of loss $50,000, Balance c/d $60,000, Total Dr:$110,000Cr: Balance b/d $110,000, Total Cr : $110,000

Larry Dr : share of loss $25,000, Balance c /d $75,000, Total Dr:$100,000, Cr : Balance b /d $100,000 Total Cr $100,000

Scot Dr: share of loss $100,000, Total Dr : $100,000Cr: Balance b /d $65,000, Balance c /d $35,000, Total Cr :$100,000

Note : if realisation of the asset result in a loss and a partners capital account is already or is thereby placed in debt, the partner must pay in enough cash to clear the balance. Otherwise, the remaining partners cannot be paid the sums shown to their credit. Since Page and Larry capital account both showed a debit balance, The amount to be distributed to page and Larry upon liquidation of the partnership is $0 $0

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geniusboy [140]

Answer:

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Explanation:

The computation of the total cost is shown below:

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7 0
3 years ago
You are holding a stock that has a beta of 1.85 and is currently in equilibrium. The required return on the stock is 28.95%, and
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Explanation:

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28.95% = rf + 1.85 * (18% - rf)

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3 0
3 years ago
Bain corp. owned 20,000 common shares of tell corp., purchased in year 1 for $180,000. on december 15, year 5, bain declared a p
amid [387]

Answer:

$300,000

Explanation:

Although the property dividend was distributed on January 15, year 6. the <u>amount that will be used is the value of the shares as at the declaration date and not the distribution date </u>

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Answer:

True.

Explanation:

The statement is “True” because the Philip curve is the curve that exhibits the relationship between the inflation or price level and unemployment. If inflation rises, then unemployment falls. If inflation falls, then unemployment rises. This happens because there is a negative relationship between inflation and unemployment. However in the long run the Philip curve is a verticle line parallel to the inflation axis and that shows there is no trade-off. Thus the option A is correct.

8 0
3 years ago
A company had 6,950,000 net income for the year. Is net sales were 14,700,000 for the same period. Calculate its profit margin.
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0.46 or 46% hope this helps
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