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1. Prepare a statement of liquidation with supporting schedules.

1. Prepare a statement of liquidation with supporting schedules.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. Prepare a statement of liquidation with supporting schedules.
2. Journalize all entries related with the liquidation.
3. Prepare a cash priority program.

The trial balance of the JMN Partnership on January 31, 2022, is presented below. The profit and loss percentages are shown in the trial balance. Debit Credit Cash 15,000 Accounts Receivable,net 85,000 Inventory Furniture and Fixtures,net Accounts Payable Melai, Loan Jay, Capital (60%) Melai, Capital (20%) Nyoy, Capital (20%) 82,000 120,000 90,000 15,000 80,000 57,000 60,000 TOTAL 302,000 302,000 The partnership is being liquidated. Liquidation activities are as follows: February P40,000 March April Accounts Receivable collected P28,000 P13,000 Noncash assets sold Book value 44,000 35,000 123,000 Selling price Accounts Payable paid Liquidation expenses Paid during the month Cash Payments to partners 45,000 30,000 80,000 65,000 25,000 3,500 3,000 2,500 5,000 30,000 remainder
Transcribed Image Text:The trial balance of the JMN Partnership on January 31, 2022, is presented below. The profit and loss percentages are shown in the trial balance. Debit Credit Cash 15,000 Accounts Receivable,net 85,000 Inventory Furniture and Fixtures,net Accounts Payable Melai, Loan Jay, Capital (60%) Melai, Capital (20%) Nyoy, Capital (20%) 82,000 120,000 90,000 15,000 80,000 57,000 60,000 TOTAL 302,000 302,000 The partnership is being liquidated. Liquidation activities are as follows: February P40,000 March April Accounts Receivable collected P28,000 P13,000 Noncash assets sold Book value 44,000 35,000 123,000 Selling price Accounts Payable paid Liquidation expenses Paid during the month Cash Payments to partners 45,000 30,000 80,000 65,000 25,000 3,500 3,000 2,500 5,000 30,000 remainder
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