Assume that snider is unable to pay the capital deficiency

Assignment Help Accounting Basics
Reference no: EM131131925

The partners in New Yorker Company decide to liquidate the firm when the balance sheet shows the following.

 

The partners share income and loss 5 : 3 : 2. During the process of liquidation, the following transactions were completed in the following sequence.

1. A total of $55,000 was received from converting noncash assets into cash.

2. Gain or loss on realization was allocated to partners.

3. Liabilities were paid in full.

4. D. Snider paid his capital deficiency.

5. Cash was paid to the partners with credit balances.

Instructions

(a) Prepare the entries to record the transactions.

(b) Post to the cash and capital accounts.

(c) Assume that Snider is unable to pay the capital deficiency.

(1) Prepare the entry to allocate Snider's debit balance to Mantle and Mays.

(2) Prepare the entry to record the final distribution ofcash.  

Reference no: EM131131925

Questions Cloud

Journalize the additional cash investment by each partner : Prepare separate journal entries to record the transfer of each proprietorship's assets and liabilities to the partnership.
The cash paid by the partnership to durham : Each of the continuing partners agrees to pay $18,000 in cash from personal funds to purchase Durham's ownership equity. Each receives 50% of Durham's equity.
Journalize the admission of atchley under each : Kensington's capital balance is $32,000 after admitting Atchley to the partnership by investment. If Kensington's ownership interest is 20% of total partnership capital, what were?
What are some factors to consider when prioritizing : What are some factors to consider when prioritizing and budgeting environmental compliance initiatives? It doesn’t matter whether you manufacture specialty chemicals or household cleansers, operate a paint shop, sell turf products, or dispose of comp..
Assume that snider is unable to pay the capital deficiency : The partners share income and loss 5 : 3 : 2. During the process of liquidation, the following transactions were completed in the following sequence.
Assuming that the two plans have the same risk as the firm : Assuming that the two plans have the same risk as the firm, use the following capital budgeting techniques and the firm's cost of capital to evaluate their acceptability and relative ranking. (1) Net present value (NPV).
The capital balance represents each partner : Net income is $19,000. Each partner is allowed interest of 10% on beginning capital balances. Caplin is given a $12,000 salary allowance. The remainder is shared equally.
The post-closing trial balances of two proprietorships : Prepare separate journal entries to record the transfer of each proprietorship's assets and liabilities to the partnership.
What is its goal in selecting projects : Once the firm has determined its projects’ relevant cash flows, what must it do next? What is its goal in selecting projects?

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  What contribution margin per unit will be needed on the

write company has a maximum capacity of 200000 units per year. variable manufacturing costs are 12 per unit. fixed

  Joe works 40 hours per week and earns 13 per hour he has125

joe works 40 hours per week and earns 13 per hour. he has125 take out for federal income taxes fit and the fica rate

  What is the after-tax cash flow on the sale

Suppose the Quick Towing Company purchases a new tow truck. The old truck had a book value of $1,000 and was sold for $1,420. If Quick Towing is in the 34 percent marginal tax bracket, what is the tax liability on the sale of the truck?

  Assume that percy co paid the balance due to lyman company

e5-1 this infromation relates to precy co.1.on april 5 purchased merchandise from lyman company for 28000 terms 210

  Net investment in the truck project

What is the net investment in the truck project? (That is, what is the Year 0 net cash flow?) What is the operating cash flows in Year 1 & 2? c) What is the NPV of this project?

  Breezes curacao has 200 rooms each room rents at 130 per

breezes curacao has 200 rooms. each room rents at 130 per night and variable costs total 42 per room per night of

  What is the total cost of the building

Calculate the amount of interest that Mason should capitalize in 2013 and 2014 using the weighted-average method. (Do not round your intermediate calculations. Enter your answers in whole dollars.)

  Develop idea and support main claim with sources

Discussion: Develop the idea and support the main claim with sources. Subsection headings might be added (if appropriate); bulleted or numbered lists can be added (if they convey information effectively)

  On july 1 2016 apache company a real estate developer sold

on july 1 2016 apache company a real estate developer sold a parcel of land to a construction company for 3000000. the

  Rooks corp is a medium-sized corporation specializing in

rooks corp. is a medium-sized corporation specializing in quarrying stone for building construction. the company has

  Solex company manufactures three products from a common

solex company manufactures three products from a common input in a joint processing operation. joint processing costs

  What is the relationship between current assets

What is the relationship between current assets and current liabilities?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd