Following is a series of independent cases. In each situation, indicate the cash

Question

Following is a series of independent cases. In each situation, indicate the cash distribution to be made to partners at the end of the liquidation process. Unless otherwise stated, assume that all solvent partners will reimburse the partnership for their deficit capital balances Part A The Buarque, Monte, and Vinicius partnership reports the following accounts. Vinicius is personally insolvent and can contribute only an additional $32,000 to the partnership. Liabilities Monte, loan Buarque, capital (50% of Monte, capital (25%) Vinícius, capital (25%) $153, 000 58,000 66,000 26,000 41,000 profits and losses) (38,000 (deficit) Part B Drawdy, Langston, and Pearl operate a local accounting firm as a partnership. After working together for several years, they have decided to liquidate the partnership's property. The partners have prepared the following balance sheet s 49,500 33,000 88,000 73,000 23, 500 s 43,000 Liabilities Cash Drawdy, loan 28,000 Langston, loan 196,000 Drawdy, capital (40%) Langston, capital (30%) Pearl, capital (30%) Total assets $267,000 Total 11abilities and capital$267,00o The firm sells the noncash assets for $143,000, It will use $38,000 of this amount to pay liquidation expenses. All three of these partners are personally insolvent. Part C Drawdy, Langston, and Pearl operate a local accounting firm as a partnership. After working to

Explanation / Answer

Note: The deficit in Vinicus's capital account is borne by Buarque and Monte in their profit sharing ratio of 50 : 25.

Per Chegg guidelines, please post independent questions separately. Thank you.

Buarque, Capital Monte, Loan and Capital Vinicus, Capital Beginning balances 26000 107000 -38000 Contribution by Vinicus 0 0 32000 Capital balances 26000 107000 -6000 Elimination of Vinicus's deficit -4000 -2000 6000 Final distribution 22000 105000 0

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