advanced accounting 450 see attached problem and excel worksheet

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dhrrabs72

Business Finance

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Due by Friday February 23rd @ 6pm est. Please make sure you understand assignment completely and are capable of doing it on time and correctly.

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2. The following balance sheet is for a local partnership in which the partners have become very unhappy with each other. Cash Land Building 40,000 130,000 120,000 1 Total Assets 290,000 Liabilities Adams, Capital Baker, Capital Carvil, Capital Dobbs, Capital Total Liab & Cap 30,000 80,000 30,000 60,000 90,000 290,000 To avoid more conflict, the partners have decided to cease operations and sell all assets. Using this information, answer the following questions. Each question should be viewed as an independent situation related to the partnerships liquidation. a. The $ 10,000 cash that exceeds the partnership liabilities is to be disbursed immediately. If profits and losses are allocated to Adams, Baker, Carvil, and Dobbs on a 2: 3: 3: 2 basis, respectively, how will the $ 10,000 be divided? b. The $ 10,000 cash that exceeds the partnership liabilities is to be disbursed immediately. If profits and losses are allocated on a 2: 2: 3: 3 basis, respectively, how will the $ 10,000 be divided? Show your work. Extra Problem 2 Distribution of $10,000 excess cash Allocation of potential loss if the assets of 130,000 and 120,000 are worth zero. 20% Adams 80,000 30% Baker 30,000 30% Carvil 60,000 20% Dobbs 90,000 80,000 30,000 60,000 -10,000 80,000 You need to do a worst case computation as follows 40,000 130,000 120,000 30,000 80,000 -50,000 30,000 '-75,000 60,000 -75,000 90,000 -50,000 30,000 -30,000 -45,000 45,000 -15,000 15000 40,000 -30,000 0 0 0 10,000 Cash 40,000 Land 130,000 -10,000 30,000 130,000 Building Liabilities 120,000 30,000 120,000 30,000 • Distribute Baker deficit after extrapolating 20/20 to 50/50 for 100% Computation of $10,000 cash going to Dobbs UNIT 7 POST PROBLEM 2 TEMPLATE Requirerri'Since the partnership currently has total capita! of $260,000, the $10,000 that is available would indicate maximum potential losses of $250,000. Adams, Capital Baker, Capital Carvil, Capital Dobbs, Capital Baker, Capital Carvil, Capital Dobbs, Capital Reported Balances Assumed $250,000 loss ( 2 : 3 : 3 : 2 ) Potential balances Potential loss from deficits (1:1) Current cash distribution RequiremSame cash to distribute, different allocations: Adams, Capital Reported Balances Assumed $250,000 loss ( 2 : 2 : 3 : 3 ) Potential balances. Step 1 Potential loss from deficits (4:6) Potential balances, Step 2 Potential loss from deficit (100%) Current cash distribution
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Hello :)Please find the solution atatched. If you have any questions, please do not hesitate to ask; if all is clear please review and rate the solutionThanks a million

Cash
Land
Building

$40.000
$130.000
$120.000

Total Assets

$290.000

Maximum Potential Loss on noncash assets

$250.000

Liabilities
Adams, Capital
Baker, Capital
Carvil, Capital
Dobbs, Capital
Total Liabilities & Capital

a)
$10.000
2
20%

Reported Balances
Assumed $250,000 Loss (2:3:3:2)
Potential Balances
Potential Loss from Deficits (1:1)
Current Cash Distribution

3
30%

3
30%

Adams, Capital
$80.000
$50.000
$30.000
$30.000
$0

Baker, Capital
$30.000
$75.000
-$45.000

2
20%

3
30%

Adams, Capital
$80.000
...


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