(Solved) AAF3L Project Accounting

pain

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7 years ago

Part A
1. After several years of business, Abel, Barney, and Cole are liquidating. The
following are post-closing account balances.
Cash 18,000
Inventory 73,000
Other assets 157,000
Accounts Payable 61,000
Abel, Capital 50,000
Barney, Capital 50,000
Cole, Capital 87,000

Noncash assets are sold for $275,000. Profits and losses are shared
equally.

After all liabilities are paid, divide the remaining cash amongst the
partners.

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bolbol

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7 years ago

Abel and Barney will both receive $65,000.00 ($50,000.00 return on capital and $15,000.00 of the remaining cash).

Cole will receive $102,000.00 ($87,000.00 return on capital and $15,000.00 of the remaining cash)

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dbouyahya

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5 years ago

The partnership of Brandon and Ryan is being liquidated. All gains and losses are shared in a 3:1 ratio, respectively. Before liquidation, their balance sheet balances are as follows:
1.
Simon Brothers pays $47,000 into a bond sinking fund each year to redeem the future maturity of its bonds. During the first year, the fund earned $3,825. At the time of bond redemption, the fund has a balance of $417,000. Of this, $400,000 was used to redeem the bonds. Journalize the following entries.
a. Initial deposit
b. The first year’s interest
c. The redemption of the bonds
On January 1, Auctions Online issued $300,000, 9%, 10-year bonds to lenders at the contract rate. Interest is to be paid semiannually on July 1 and January 1. Journalize the following entries.
2.
Cash
Other Assets Liabilities Brandon, Capital Ryan, Capital
$10,000 8,000 4,000 7,000 7,000
a. If the Other Assets are sold for $10,000, how much will each partner receive before paying liabilities and distributing the remaining assets?
b. If the Other Assets are sold for $8,000, how much will each partner receive before paying liabilities and distributing remaining assets?

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bolbol

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AAF3L Project Accounting

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