Scribd Logo
Upload

Welcome to Scribd!

  • 156 views

    Lone Pine Cafe

    Uploaded by

    Cynthia Anggi Maulina
    The document provides financial information about the Lone Pine Café partnership. It lists the initial contributions and purchases made by the 3 partners in November 2009 when they started the business. These included $16,000 cash contributions from each partner, a $21,000 bank loan, purchases of equipment and supplies totaling $56,000, and other startup costs. By March 2010, the business was not successful and 2 of the partners disappeared. The balance sheet from November 2009 and March 2010 are provided, showing the assets, liabilities, and equity of the partners. Based on estimating liquidation values of the assets, it is unlikely the partners would have received their proportional equity shares if the partnership dissolved on March 30, 2010, due to

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Lone Pine Cafe

    Uploaded by

    Cynthia Anggi Maulina
    156 views13 pages
    The document provides financial information about the Lone Pine Café partnership. It lists the initial contributions and purchases made by the 3 partners in November 2009 when they started the business. These included $16,000 cash contributions from each partner, a $21,000 bank loan, purchases of equipment and supplies totaling $56,000, and other startup costs. By March 2010, the business was not successful and 2 of the partners disappeared. The balance sheet from November 2009 and March 2010 are provided, showing the assets, liabilities, and equity of the partners. Based on estimating liquidation values of the assets, it is unlikely the partners would have received their proportional equity shares if the partnership dissolved on March 30, 2010, due to

    Original Description:

    Accounting and tax

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document provides financial information about the Lone Pine Café partnership. It lists the initial contributions and purchases made by the 3 partners in November 2009 when they started the business. These included $16,000 cash contributions from each partner, a $21,000 bank loan, purchases of equipment and supplies totaling $56,000, and other startup costs. By March 2010, the business was not successful and 2 of the partners disappeared. The balance sheet from November 2009 and March 2010 are provided, showing the assets, liabilities, and equity of the partners. Based on estimating liquidation values of the assets, it is unlikely the partners would have received their proportional equity shares if the partnership dissolved on March 30, 2010, due to

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    156 views13 pages

    Lone Pine Cafe

    Uploaded by

    Cynthia Anggi Maulina
    The document provides financial information about the Lone Pine Café partnership. It lists the initial contributions and purchases made by the 3 partners in November 2009 when they started the business. These included $16,000 cash contributions from each partner, a $21,000 bank loan, purchases of equipment and supplies totaling $56,000, and other startup costs. By March 2010, the business was not successful and 2 of the partners disappeared. The balance sheet from November 2009 and March 2010 are provided, showing the assets, liabilities, and equity of the partners. Based on estimating liquidation values of the assets, it is unlikely the partners would have received their proportional equity shares if the partnership dissolved on March 30, 2010, due to

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 13

    Case 2-3

    Lone Pine Caf (A)*

    Group 1
    Andi Hakim
    Cynthia Anggi
    Maulina
    Devina Gabriela
    Edsa Nathasya
    Valentina

    Informations
    Transaction on November 1, 2009:
    The partnership was formed by Mr. and Mrs. Henry Antoine and Mrs. Sandra
    Landers.
    Each of 3 partners contributed $ 16,000 cash to the partnership.
    Signed a one-year lease to he Lone Pine Caf, the monthly rent was $1.500
    Bank Loan: $ 21,000 & used this plus $35,000 of partnership funds to buy out
    the previous operator of the caf.
    - Equipment: $ 53,200
    - Food & Beverages: $ 2,800
    Local Operating Licences (for one year) : $ 1,428
    New Cash Register: $ 1,400
    The remainder of the $ 69,000 was deposited in a checking account.
    The restaurant was not very successful.
    On March 31, 2010, Mr. Antoine and Mrs. Landers had disappeared.
    The court subsequently affirmed that the partnership was dissolved as of

    Questions 1
    Prepare a balance sheet for the Lone Pine Caf as of November
    2, 2009.

    Lone Pine Caf


    Statement of Financial Position
    As of November 2, 2009
    Assets

    Liabilities

    Current Asets

    Bank Loan

    $ 21,000

    Total liabilities

    $ 21,000

    Cash

    10,172

    Foods and Beverages On Hand

    2,800

    Prepaid expense

    1,428

    Total Current Assets

    $ 14,400
    Owners' equity

    Non Current Assets

    Mr. Antoine

    16,000

    Caf Equipment

    53,200

    Mrs. Antoine

    16,000

    New Cash Register

    1,400

    Mrs. Landers

    16,000

    Total Non Current Assets

    $ 54,600

    Total equity

    $ 48,000

    Checking Account Balance


    calculation:
    = Total Incoming Cash - Total Outgoing Cash
    = (Partner's Capital + Bank Loan) - (Equipment + New Cash Register + Foods and Beverages + Licenses)
    ($ 48,000 + $ 21,000) - ($ 53,200 + $ 1,400 + $ 2,800 + $
    = 1,428)
    = ($ 69,000) - ($ 58,828)
    = $10,172

    Equipment
    = Caf Equipment + New Cash Register
    = $ 53,200 + $ 1,400
    = $54,600

    Questions 2
    Prepare a balance sheet as of March 30, 2010

    Total Cash :
    = Cash in Cash Register + Checking Account
    = $ 311 + $ 1030
    Prepaid Expense :
    = $ 1428 * 7/12
    = $ 833
    Total Capital untuk Bertiga
    = Total Asset (Total Liabilities)
    = (Cash + A/R + Foods & Bevg + Prepaid Expense + Equipment) (Account Payable +
    Bank Loan)
    = ( $ 1341 + $870 + $ 2430 + $833 + ( $54600 - $ 2445) ( $ 1583 + ( $ 21000 + $
    2100)
    = ($ 57629) ($ 20483)

    Lone Pine Caf


    Statement of Financial Position
    As of March 30, 2010
    Assets
    Current Asset
    Cash
    $ 1341
    Account Receivable
    Food & Beverages
    Prepaid Expense
    Total Current Asset

    $ 870
    $ 2430
    $ 833
    $ 5474

    Liabilities
    Current Liabilities
    Account Payable
    $ 1583
    Non Current Liabilllities
    Bank Loan
    $ 18900
    Total Liabilities
    $ 20483
    Owners Equity

    Non Current Asset


    Equipment
    $ 54600
    Less : Accum Depreciation

    $ (2445)

    Mr. Antoines Capital


    $ 12382
    Mrs. Antoines Capital
    $ 12382
    Mrs. Landers Capital$ 12382

    Total Non Current Asset

    $52155

    Total Equity

    Total Asset

    $ 57629

    $ 37146

    Total Liabilities & Equity

    $57629

    Questions 3
    Disregarding the marital complications, do you suppose that
    the partners would have been able to receive their
    proportional share of the equity determided in Question 2 if
    the partnership was disolved on March 30, 2010? Why?

    Assets
    Cash
    Account
    Receivable
    Inventory
    Prepaid Expense
    Caf equipment
    TOTAL

    Liquidation Value Estimation


    Current Statement of
    Assumed Recovery
    Financial Position
    $ 1,341
    100%
    $ 870
    100%
    $2,430
    $833
    $52,155
    $57,629

    0%
    0%
    30%

    Liquidation Value
    $ 1,341
    $ 870
    $0
    $0
    $15,646
    $17,857

    Based on Liquidation value estimation, their asset will not bring enough cash to pay the
    liabilities and partners. On caf equipment, we assume that caf equipment worth 30% for
    cash value.
    The Partners would not been able to receive their proportional share of the equity.

    The Lone Pine Caf has obligation to precede payment to secured creditor (in line
    case in Bank), then payment to unsecured creditor (in this case is Supplier).
    Payment to Partners/Shareholders will be placed in the final sequence therefore
    we suppose that it is very unlikely the Partners would have been able to receive
    their proportional share of the equisty ($ 12,382 each) as determined in Statement
    of Financial Position as of March 30, 2010.
    Anggi ini g masukin sini ya.. Soalnya ini slide untuk Q3.

    Thanks!
    Any questions?

    You might also like