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The Lone Pine Caf

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?

Relevant Case Facts


As of November 1, 2009: A total of $48,000 capital was infused to start the business with equal contribution from each One year lease contract to Lone Pine Caf Monthly rental cost of $1,500 Bought out caf from previous owner through Bank Loan of $21,000 Utilization of $35,000 from partnership funds $53,200 worth of equipment financed through loan and partnership funds $2,800 worth of F&B inventory also financed the same way $1,428 paid for local licenses good for 1 year beginning November 1, 2009 $1,400 spent on new cash register $8,672 deposited on current account

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

8,672.00 1,500.00 1,428.00 2,800.00 14,400.00

21,000.00 21,000.00

53,200.00 1,400.00 54,600.00 69,000.00

Total Liabilities and OE

69,000.00

Relevant Case Facts


As of March 30, 2010:
Cash register contained $311 Checking account balance is at $1,030 Meals charged and paid by Ski instructors amounting to $870 Due amount to suppliers totaling to $1,583 Asset depreciation value of $2,445 F&B inventory amounting to 2,430 Loan repayment of $2,100

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

1,900.00 833.00 2,430.00 5,163.00

18,900.00 1,583.00 20,483.00

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

1,900.00 833.00 2,430.00 5,163.00

18,900.00 1,583.00 20,483.00

53,200.00 (2,445.00) 50,755.00 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!