Prior to liquidating their partnership, Pepper and Haines had capital accounts of $18,000 and $65,000, respectively....

Question

Question

Prior to liquidating their partnership, Pepper and Haines had capital accounts of $18,000 and $65,000, respectively....

Prior to liquidating their partnership, Pepper and Haines had capital accounts of $18,000 and $65,000, respectively. The partnership assets were sold for $33,000. The partnership had no liabilities. Pepper and Haines share income and losses equally.

Required:

a. Determine the amount of Pepper's deficiency.
$

b. Determine the amount distributed to Haines, assuming Pepper is unable to satisfy the deficiency.
$

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Loss on liquidation = Cash received - carrying value of assets

= 33,000 - (18,000+65,000)

= 50,000

Pepper's deficiency = Capital balance - share in loss on liquidation

= 18,000 - (50,000*1/2)

= 18,000 - 25,000

= 7,000

Amount distributed to Haines assuming pepper is unable to satisfy the deficiency

= 65,000 - 7,000 - 25,000

= 33,000

Add a comment

Answer 2

Similar Homework Help Questions

Liquidating Partnerships-Deficiency Prior to liquidating their partnership, Pepper and Haines had capital accounts of $17,000 and...

Liquidating Partnerships-Deficiency Prior to liquidating their partnership, Pepper and Haines had capital accounts of $17,000 and $63,000, respectively. The partnership assets were sold for $30,000. The partnership had no liabilities. Pepper and Haines share income and losses equally. Required: a. Determine the amount of Pepper's deficiency. b. Determine the amount distributed to Haines, assuming Pepper is unable to satisfy the deficiency.
Lquidating Partnersh-Deficieney Prior to liquidating their partnership, Pepper and Haines had captal nunts of 20,000 and...

Lquidating Partnersh-Deficieney Prior to liquidating their partnership, Pepper and Haines had captal nunts of 20,000 and s.000, respectively. The partnership assets were sld for $42,000. The partnership had no labtes. Pepper and Haines share income and losses equally. Required: a. Determine the amount of Pepper's defcency b. Determine the amount distributed to ane, ming Pepper is unable te satily the defciency Liquidating Pertnenshps-Deficency Prior te liquidating their partnership, Peper and Hanes had cpital accounts of 20.000 and 0.000, repectively. The...
Prior to liquidating their partnership, Pepper and Morrison had capital accounts of $21,000 and $85,000, respectively....

Prior to liquidating their partnership, Pepper and Morrison had capital accounts of $21,000 and $85,000, respectively. The partnership assets were sold for $40,000. The partnership had no liabilities. Pepper and Morrison share income and losses equally. Required: a. Determine the amount of Pepper's deficiency. $ b. Determine the amount distributed to Morrison, assuming Pepper is unable to satisfy the deficiency.

Liquidating Partnerships—Deficiency Prior to liquidating their partnership, Pepper and Morrison had capital accounts of $28,000 and...

Liquidating Partnerships—Deficiency Prior to liquidating their partnership, Pepper and Morrison had capital accounts of $28,000 and $100,000, respectively. The partnership assets were sold for $46,000. The partnership had no liabilities. Pepper and Morrison share income and losses equally. Required: a. Determine the amount of Pepper's deficiency. $ b. Determine the amount distributed to Morrison, assuming Pepper is unable to satisfy the deficiency. $
Liquidating Partnerships-Deficiency Prior to liquidating their partnership, Pepper and Russo had capital accounts of $21,000 and...

Liquidating Partnerships-Deficiency Prior to liquidating their partnership, Pepper and Russo had capital accounts of $21,000 and $83,000, respectively. The partnership assets were sold for $38,000. The partnership had no liabilities. Pepper and Russo share income and losses equally. Required: a. Determine the amount of Pepper's deficiency. b. Determine the amount distributed to Russo, assuming Pepper is unable to satisfy the deficiency.
Liquidating Partnerships Prior to liquidating their partnership, Todd and Dunn had capital accounts of $66,000 and...

Liquidating Partnerships Prior to liquidating their partnership, Todd and Dunn had capital accounts of $66,000 and $101,000, respectively. Prior to liquidation, the partnership had no cash assets other than what was realized from the sale of assets. These partnership assets were sold for $149,000. The partnership had $8,000 of liabilities. Todd and Dunn share income and losses equally. Determine the amount received by Todd as a final distribution from liquidation of the partnership. $ Prior to liquidating their partnership, Pepper...

Liquidating Partnerships-Deficiency Prior to liquidating their partnership, Underwood and Haines had capital accounts of $25,000 and...

Liquidating Partnerships-Deficiency Prior to liquidating their partnership, Underwood and Haines had capital accounts of $25,000 and $105,000, respectively. The partnership assets were sold for $53,000. The partnership had no liabilities. Underwood and Haines share income and losses equally, Required: a. mine the amount of Underwood's deficiency. b. Determine the amount distributed to Haines, assuming Underwood is unable to satisfy the deficiency. Feedback 7 Check My Work 1. Begin with Underwood's equity prior to liquidation 2. Sell the assets and recognize...
Prior to liquidating their partnership, Underwood and Russo had capital accounts of $24,000 and $88,000, respectively....

Prior to liquidating their partnership, Underwood and Russo had capital accounts of $24,000 and $88,000, respectively. The partnership assets were sold for $40,000. The partnership had no liabilities. Underwood and Russo share income and losses equally. Required: a. Determine the amount of Underwood's deficiency. $ b. Determine the amount distributed to Russo, assuming Underwood is unable to satisfy the deficiency. $ Prior to liquidating their partnership, Underwood and Russo had capital accounts of $24,000 and $88,000, respectively. The partnership assets...
Prior to liquidating their partnership, Jolly and Bain had capital accounts of $27,000 and $105,000, respectively....

Prior to liquidating their partnership, Jolly and Bain had capital accounts of $27,000 and $105,000, respectively. The partnership assets were sold for $48,000. The partnership had no liabilities. Jolly and Bain share income and losses equally. Determine the amount of Jolly's deficiency. Determine the amount distributed to Bain, assuming Jolly is unable to satisfy the deficiency.

Liquidating Partnership-Deficiency Prior to liquidating their partnership, Jolly and Reynell had capital accounts of $19,000 and...

Liquidating Partnership-Deficiency Prior to liquidating their partnership, Jolly and Reynell had capital accounts of $19,000 and $79,000, respectively. The partnership assets were sold for $30,000. The partnership had no liabilities. Jolly and Reynell share income and losses equally. Required: a. Determine the amount of Jolly's deficiency. 1. Determine the amount distributed to Reynell, assuming Jolly is unable to satisfy the deficiency.

Prior to liquidating their partnership, Pepper and Haines had capital accounts of $18,000 and $65,000, respectively....

Homework Answers

Add Answer to:
Prior to liquidating their partnership, Pepper and Haines had capital accounts of $18,000 and $65,000, respectively....

Post as a guest

Earn Coins

Liquidating Partnerships-Deficiency Prior to liquidating their partnership, Pepper and Haines had capital accounts of $17,000 and...

Lquidating Partnersh-Deficieney Prior to liquidating their partnership, Pepper and Haines had captal nunts of 20,000 and...

Prior to liquidating their partnership, Pepper and Morrison had capital accounts of $21,000 and $85,000, respectively....

Liquidating Partnerships—Deficiency Prior to liquidating their partnership, Pepper and Morrison had capital accounts of $28,000 and...

Liquidating Partnerships-Deficiency Prior to liquidating their partnership, Pepper and Russo had capital accounts of $21,000 and...

Liquidating Partnerships Prior to liquidating their partnership, Todd and Dunn had capital accounts of $66,000 and...

Liquidating Partnerships-Deficiency Prior to liquidating their partnership, Underwood and Haines had capital accounts of $25,000 and...

Prior to liquidating their partnership, Underwood and Russo had capital accounts of $24,000 and $88,000, respectively....

Prior to liquidating their partnership, Jolly and Bain had capital accounts of $27,000 and $105,000, respectively....

Liquidating Partnership-Deficiency Prior to liquidating their partnership, Jolly and Reynell had capital accounts of $19,000 and...

Prior to liquidating their partnership, Pepper and Haines had capital accounts of $18,000 and $65,000, respectively....

Homework Answers

Add Answer to: Prior to liquidating their partnership, Pepper and Haines had capital accounts of $18,000 and $65,000, respectively....

Post as a guest

Earn Coins

Add Answer to:
Prior to liquidating their partnership, Pepper and Haines had capital accounts of $18,000 and $65,000, respectively....