ch13 Partnerships and Limited Liability Corporations 财务会计英文版教材.pptVIP

Liquidating Partnerships The remaining cash, $74,000, is paid to each partner in accordance with the partner’s capital balance. Gain on Realization Liquidating Partnerships Left side of statement Noncash Cash Assets Liabilities Balance before realization $11,000 $64,000 $9,000 Sale of assets and division of gain +72,000 –64,000 — Balance after realization $83,000 $ 0 $9,000 Payment of liabilities –9,000 — –9,000 Balance after payment $74,000 $ 0 $ 0 Partners’ cash distributed –74,000 — — Final balances $ 0 $ 0 $ 0 Dividing Income Services of Partners Dec. 31 Income Summary 75 000 00 Jennifer Stone, Capital 40 500 00 Crystal Mills, Capital 34 500 00 Dividing Income LLC Alternative Dec. 31 Income Summary 75 000 00 Jennifer Stone, Member Equity 40 500 00 Crystal Mills, Member Equity 34 500 00 Dividing Income Services of Partners and Investments The partnership agreement of Jennifer Stone and Crystal Mills provides for Stone to have an annual salary allowance of $30,000 and Mills is to receive $24,000. Interest of 12% is provided on each partner’s capital balance on January 1. Any net income is to be divided equally. The firm had a net income of $75,000. Dividing Income Services of Partners and Investments J. Stone C. Mills Total Salary allowance $30,000 $24,000 $54,000 Interest allowance 9,600 7,200 16,800 Division of net income $41,700 $33,300 $75,000 $80,000 x 12% $60,000 x 12% Remaining income 2,100 2,100 4,200 Dividing Income Services of Partners Dec. 31 Income Summary 75 000 00 Jennifer Stone, Capital 41 700 00 Crystal Mills, Capital 33 300 00 Dividing Income LLC Alternative Dec. 31 Income Summary 75 000 00 Jennifer Stone, Member Equity 41 700 00 Crystal Mills, Member Equity 33 300 00 Dividing Income Allowances Exceed Net Income Assume the same facts as before except that the net income is only $50,000. J.