Accounting 401 Final Exam (Answered)
Complete Verified Solution 2023 100%
1. The capital balances, prior to the liquidation of the XYZ partnership, were as
follows:
X, Capital $130,000
Y, Capital $130,000
Z, Capital $100,000
X, Y, and Z share profits and losses in the ratio of 5:3:2. As a result of a loan, the
partnership owes Y $80,000. Using the information above, which partner has the
highest Loss Absorption Power (LAP) prior to liquidation?
A. X
B. Y
C. Z
D. Both X and Y
C. Z
2. The balance sheet given below is presented for the partnership of Janet, Anton,
and Millet:
Cash $60,000
Other Assets 150,000
Total $210,000
Liabilities $80,000
Janet, Cap $80,000
Anton, Cap $30,000
Millet, Cap $20,000
Total $210,000
The partners share profits and losses in the ratio of 5:3:2, respectively. The
partners agreed to dissolve the partnership after selling the other assets for
$50,000. On dissolution of the partnership, Janet should receive:
A. $0.
B. $80,000.
C. $10,000.
D. $30,000.
D. 30,000
3. On December 1, 2009, the partners of Tim, Williams, and Levin, who share
profits and losses in the ratio of 4:4:2, decided to liquidate their partnership. On
this date the partnership condensed balance sheet was as follows:
On December 11, 2009, the first cash sale of other assets with a carrying amount
of $200,000 realized $140,000. Safe installment payments to the partners were
made on the same date. How much cash should be distributed to each partner?
,A. Option A
B. Option B
C. Option C
D. Option D
C. Option C
Tom, Dick, and Harry are partners in an equipment leasing business that has not
been able to generate the type of revenue expected by the partners. They share
profits and losses in a ratio of 5:3:2. They have decided to liquidate the business
and have sold all the assets except for one piece of heavy machinery. All
partnership liabilities have been settled and all the partners are personally
insolvent. The machinery has a book value of $85,000, and the partners have
capital account balances as follows:
Each of the following are independent cases.
4. Refer to the information given above. What amount of cash will each partner
receive as a liquidating distribution if the machinery is sold for 65,000 dollars?
A. Option A
B. Option B
C. Option C
D. Option D
B. Option B
Tom, Dick, and Harry are partners in an equipment leasing business that has not
been able to generate the type of revenue expected by the partners. They share
profits and losses in a ratio of 5:3:2. They have decided to liquidate the business
and have sold all the assets except for one piece of heavy machinery. All
partnership liabilities have been settled and all the partners are personally
insolvent. The machinery has a book value of $85,000, and the partners have
capital account balances as follows:
Each of the following are independent cases.
5. Refer to the information given above. What amount of cash will each partner
receive as a liquidating distribution if the machinery is sold for 33,000 dollars?
A. Option A
B. Option B
C. Option C
D. Option D
C. Option C
Tom, Dick, and Harry are partners in an equipment leasing business that has not
been able to generate the type of revenue expected by the partners. They share
profits and losses in a ratio of 5:3:2. They have decided to liquidate the business
and have sold all the assets except for one piece of heavy machinery. All
, partnership liabilities have been settled and all the partners are personally
insolvent. The machinery has a book value of $85,000, and the partners have
capital account balances as follows:
Each of the following are independent cases.
6. Refer to the information given above. What amount of cash will each partner
receive as a liquidating distribution if the machinery is sold for 21,100 dollars?
A. Option A
B. Option B
C. Option C
D. Option D
A. Option A
Partners Dennis and Lilly have decided to liquidate their business. The following
information is available:
Dennis and Lilly share profits and losses in a 3:2 ratio. During the first month of
liquidation, half the inventory is sold for $60,000, and $60,000 of the accounts
payable is paid. During the second month, the rest of the inventory is sold for
$45,000, and the remaining accounts payable are paid. Cash is distributed at the
end of each month, and the liquidation is completed at the end of the second
month.
7. Refer to the information provided above. Using a safe payments schedule, how
much cash will be distributed to Dennis at the end of the first month?
A. $64,000
B. $60,000
C. $24,000
D. $36,000
D. $36,000
Partners Dennis and Lilly have decided to liquidate their business. The following
information is available:
Dennis and Lilly share profits and losses in a 3:2 ratio. During the first month of
liquidation, half the inventory is sold for $60,000, and $60,000 of the accounts
payable is paid. During the second month, the rest of the inventory is sold for
$45,000, and the remaining accounts payable are paid. Cash is distributed at the
end of each month, and the liquidation is completed at the end of the second
month.
8. Refer to the information provided above. Using a safe payments schedule, how
much cash will be distributed to Lilly at the end of the first month?
A. $24,000
Complete Verified Solution 2023 100%
1. The capital balances, prior to the liquidation of the XYZ partnership, were as
follows:
X, Capital $130,000
Y, Capital $130,000
Z, Capital $100,000
X, Y, and Z share profits and losses in the ratio of 5:3:2. As a result of a loan, the
partnership owes Y $80,000. Using the information above, which partner has the
highest Loss Absorption Power (LAP) prior to liquidation?
A. X
B. Y
C. Z
D. Both X and Y
C. Z
2. The balance sheet given below is presented for the partnership of Janet, Anton,
and Millet:
Cash $60,000
Other Assets 150,000
Total $210,000
Liabilities $80,000
Janet, Cap $80,000
Anton, Cap $30,000
Millet, Cap $20,000
Total $210,000
The partners share profits and losses in the ratio of 5:3:2, respectively. The
partners agreed to dissolve the partnership after selling the other assets for
$50,000. On dissolution of the partnership, Janet should receive:
A. $0.
B. $80,000.
C. $10,000.
D. $30,000.
D. 30,000
3. On December 1, 2009, the partners of Tim, Williams, and Levin, who share
profits and losses in the ratio of 4:4:2, decided to liquidate their partnership. On
this date the partnership condensed balance sheet was as follows:
On December 11, 2009, the first cash sale of other assets with a carrying amount
of $200,000 realized $140,000. Safe installment payments to the partners were
made on the same date. How much cash should be distributed to each partner?
,A. Option A
B. Option B
C. Option C
D. Option D
C. Option C
Tom, Dick, and Harry are partners in an equipment leasing business that has not
been able to generate the type of revenue expected by the partners. They share
profits and losses in a ratio of 5:3:2. They have decided to liquidate the business
and have sold all the assets except for one piece of heavy machinery. All
partnership liabilities have been settled and all the partners are personally
insolvent. The machinery has a book value of $85,000, and the partners have
capital account balances as follows:
Each of the following are independent cases.
4. Refer to the information given above. What amount of cash will each partner
receive as a liquidating distribution if the machinery is sold for 65,000 dollars?
A. Option A
B. Option B
C. Option C
D. Option D
B. Option B
Tom, Dick, and Harry are partners in an equipment leasing business that has not
been able to generate the type of revenue expected by the partners. They share
profits and losses in a ratio of 5:3:2. They have decided to liquidate the business
and have sold all the assets except for one piece of heavy machinery. All
partnership liabilities have been settled and all the partners are personally
insolvent. The machinery has a book value of $85,000, and the partners have
capital account balances as follows:
Each of the following are independent cases.
5. Refer to the information given above. What amount of cash will each partner
receive as a liquidating distribution if the machinery is sold for 33,000 dollars?
A. Option A
B. Option B
C. Option C
D. Option D
C. Option C
Tom, Dick, and Harry are partners in an equipment leasing business that has not
been able to generate the type of revenue expected by the partners. They share
profits and losses in a ratio of 5:3:2. They have decided to liquidate the business
and have sold all the assets except for one piece of heavy machinery. All
, partnership liabilities have been settled and all the partners are personally
insolvent. The machinery has a book value of $85,000, and the partners have
capital account balances as follows:
Each of the following are independent cases.
6. Refer to the information given above. What amount of cash will each partner
receive as a liquidating distribution if the machinery is sold for 21,100 dollars?
A. Option A
B. Option B
C. Option C
D. Option D
A. Option A
Partners Dennis and Lilly have decided to liquidate their business. The following
information is available:
Dennis and Lilly share profits and losses in a 3:2 ratio. During the first month of
liquidation, half the inventory is sold for $60,000, and $60,000 of the accounts
payable is paid. During the second month, the rest of the inventory is sold for
$45,000, and the remaining accounts payable are paid. Cash is distributed at the
end of each month, and the liquidation is completed at the end of the second
month.
7. Refer to the information provided above. Using a safe payments schedule, how
much cash will be distributed to Dennis at the end of the first month?
A. $64,000
B. $60,000
C. $24,000
D. $36,000
D. $36,000
Partners Dennis and Lilly have decided to liquidate their business. The following
information is available:
Dennis and Lilly share profits and losses in a 3:2 ratio. During the first month of
liquidation, half the inventory is sold for $60,000, and $60,000 of the accounts
payable is paid. During the second month, the rest of the inventory is sold for
$45,000, and the remaining accounts payable are paid. Cash is distributed at the
end of each month, and the liquidation is completed at the end of the second
month.
8. Refer to the information provided above. Using a safe payments schedule, how
much cash will be distributed to Lilly at the end of the first month?
A. $24,000
