Professional Documents
Culture Documents
Eugene Baroa Abelardo Bea Jr. Roe Ann Comendador Glenn Joseph Rillo
September 28, 2013
Case Personalities
Mr. and Mrs. Henry Antoine
Mrs. Sandra Landers
Case Summary
A Business partnership between Mr. and Mrs. Henry Antoine and Mrs. Sandra Landers Leased Lone Pine Caf for one year and bought out from previous operator The caf is located in a nearby recreational area Business financed through partnership funds and bank loan Opened shortly after November 1, 2009
Case Summary
Mr. Antoine took charge of the kitchen while the 2 ladies waited for the customers Mrs. Antoine ordered F&B, supplies, operated cash register, and maintained the checking account Unsuccessful operation all throughout winter 20092010 Disappearance of Mr. Henry Antoine and Mrs. Sandra Landers on the morning of March 31, 2010
Case Summary
Missing business/partnership assets Court affirmation on dissolution of partnership effective March 30, 2010 Mrs. Landers decided to continue operating the business Donald Simpson, an accountant to assist Mrs. Antoine create a balance sheet
Problem Identification
Given the dissolution of the business partnership, how should the owners of Lone Pine Caf distribute the total equity as of March 30?
STATEMENT OF FINANCIAL POSITION The Lone Pine Caf ao November 1, 2009 Assets Current Assets Cash, checking acct Prepaid Rent Prepaid License Inventory, F&B Total Current Assets Non Current Assets Equipments Cash Register Total Non Current Assets Total Assets Liabilities Current Liabilities Notes Payable Total Current Liabilities Owners' Equity Mr. Antoine Mrs. Antoine Mrs. Landers Total Owners' Equity 16,000.00 16,000.00 16,000.00 48,000.00
21,000.00 21,000.00
69,000.00
Scenario 1
STATEMENT OF FINANCIAL POSITION The Lone Pine Caf ao March 30, 2010 Assets Current Assets Cash, checking acct and receipts Prepaid License Inventory, F&B Total Current Assets Non Current Assets Equipments Less: Depreciation Total Non Current Assets Total Assets Liabilities Current Liabilities Notes Payable Accounts Payable Total Current Liabilities Owners' Equity 53,200.00 (2,445.00) 50,755.00 55,918.00 Mr. Antoine Mrs. Antoine Mrs. Landers Total Owners' Equity Total Liabilities and OE 11,811.67 11,811.67 11,811.67 35,435.00 55,918.00
Scenario 2
STATEMENT OF FINANCIAL POSITION The Lone Pine Caf ao March 30, 2010 Assets Current Assets Cash, checking acct and receipts Cash, cash register Prepaid License Inventory, F&B Total Current Assets Non Current Assets Cash reg Equipment Less: Depreciation Total Non Current Assets Total Assets Liabilities Current Liabilities Notes Payable Accounts Payable Total Current Liabilities Owners' Equity Mr. Antoine Withdrawal, Mr Antoine Mrs. Antoine Mrs. Landers Withdrawal, Mrs Landers Total Owners' Equity Total Liabilities and OE 12,382.00 (855.50) 12,382.00 12,382.00 (855.50) 35,435.00 55,918.00
Even without the marital complications, the partners are still entitled to receive a proportional share of their equity.
A dissolution of a partnership generally occurs when one of the partners ceases to be a partner in the firm
http://legal-dictionary.thefreedictionary.com/partnership
Thank you!