Answer case 7 use the data in case 1 as reference. Case 7: Cash priority programHalf of the accounts receivable was collected.will be liquidated on installment basis. In the first month ofDoouidation process, the non-cash assets were realized asfollows:a.Seventy-five percent of the inventory was sold at 80% of cost.Fquipment with carrying amount of P200,000 was sold forC.P185,000.P12,000 liquidation expenses were paid. Additional P5,000liquidationsubsequent periods.expenses are expected to be incurred inRequirement: Compute for the cash distributions to the partnersusing a cash priority program. Fact1. Done Partnership is undergoing liquidation. Information onDone is as follows:CashAccounts receivableReceivable from AInventoryEquipment, netTotal20,000 Accounts payable60,000 Payable to B10,000 A, Capital (60%)120,000 B, Capital (40%)290,000500,000 Total Liab. & Equity30,00020,000250,000200,000500,000Case 1: Lump-sum liquidationThe non-cash assets were realized as follows:. Only 70% of the accounts receivable was collected; the balanceis uncollectible.b. P20,000 was received for the entire inventory.c. The equipment was sold for P310,000.d. P12,000 liquidation expenses were paid.Requirement: Compute for the cash distributions to the partners.

Cash Priority Program: In a partnership liquidation, the distribution of funds to the partners is…

Case 7: Cash priority program Done will be liquidated on installment basis. In the first month of b. Seventy-five percent of the inventory was sold at 80% of cost. Half of the accounts receivable was collected. Doneidation process, the non-cash assets were realized as follows: a. * Seventy-five percent of the inventory was sold at 80% of cost. Equipment with carrying amount of P200,000 was sold for C. P185,000. P12,000 liquidation expenses were paid. Additional P5,000 liquidation expenses subsequent periods. are expected to be incurred in

Case 7: Cash priority program Done will be liquidated on installment basis. In the first month of b. Seventy-five percent of the inventory was sold at 80% of cost. Half of the accounts receivable was collected. Doneidation process, the non-cash assets were realized as follows: a. * Seventy-five percent of the inventory was sold at 80% of cost. Equipment with carrying amount of P200,000 was sold for C. P185,000. P12,000 liquidation expenses were paid. Additional P5,000 liquidation expenses subsequent periods. are expected to be incurred in

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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