1. On January 1, 20X2, partners A, B and C, who share profits and losses in the ratio of 5:3:2,respectively, decided to liquidate their partnership. The partnership trial balance at this date is asfollows:CreditCashAccounts ReceivableInventoryMachinery and Equipment, netA, Loan●Accounts PayableB, LoanA, CapitalB, CapitalC, CapitalTotalsDebit18,00066,00052,000189,00030,00053,00020,000118,00090,00074,000355,000355,000The partners plan a program of piecemeal conversion of assets in order to minimize liquidation losses.All available cash, less an amount retained to provide for future expenses, is to be distributed to thepartners at the end of each month. The following liquidation transactions occurred in January 20X2.P51,000 was collected on accounts receivable; the balance in uncollectible.● $48,000 was received for the entire inventory.$2,000 liquidation expenses were paid.P50,000 was paid to outside creditors, after offset of a P3,000 credit memorandum received onJanuary 11, 20X2.P10,000 cash was retained in the business at the end of the month for potential unrecordedliabilities and anticipated expenses.All partners are insolvent. How much did C receive on the January 31, 20X2 cash distribution to thepartners?

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All partners are insolvent. How much did C receive on the January 31, 20X2 cash distribution to the partners?

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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On January 1, 20X2, the partners of Allen, Brown, and Cox, who share profits and losses in the ratio of 5:3:2, respectively, decide to liquidate their partnership. The partnership trial balance at this date is as follows: Debit CreditCash P 18,000Accounts receivable 66,000Inventory 52,000Machinery and equipment, net 189,000Allen, loan 30,000Accounts payable P 53,000Brown, loan 20,000Allen, capital 118,000Brown, capital…
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D1. Account
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