EXERCISE 10. Journal Entries and Statement Preparation: With capital deficiency; solvent/insolvent partner/s. The partners in the law firm of Mega, Nega, and Pipa had strong differences of opinion concerning client acceptance policies that made them decide to liquidate the business on February 14, 2022. As of December 31, 2021, their capital balances were: Mega, P350,000; Nega, P100,000; and Pipa, P105,000. Liabilities, cash, and non-cash assets were P145,000, P40,000, and P660,000, respectively. Cash revenues and expenses for 2020 amounted to P77,000 and P115,000, respectively. Profits and losses are shared by Mega, Nega, and Pipa in the ratio of 5:3:2, respectively. REQUIRED: 1. Prepare and upload journal entries to record liquidation under each of the following cases: 1. Non-cash assets were sold for P200,000. Assume any deficient partner is solvent. 2. Non-cash assets were sold at a loss of P515,000. Assume any deficient partner is solvent. 3. Non-cash assets were sold for P200,000. Assume any deficient partner is insolvent. 4. Nnon-cash assets were sold at a loss of P515,000. Assume any deficient partner is insolvent. 2. Prepare and upload statement of liquidation for Item 1d.

EXERCISE 10. Journal Entries and Statement Preparation: With capital deficiency; solvent/insolvent partner/s. The partners in the law firm of Mega, Nega, and Pipa had strong differences of opinion concerning client acceptance policies that made them decide to liquidate the business on February 14, 2022. As of December 31, 2021, their capital balances were: Mega, P350,000; Nega, P100,000; and Pipa, P105,000. Liabilities, cash, and non-cash assets were P145,000, P40,000, and P660,000, respectively. Cash revenues and expenses for 2020 amounted to P77,000 and P115,000, respectively. Profits and losses are shared by Mega, Nega, and Pipa in the ratio of 5:3:2, respectively. REQUIRED: 1. Prepare and upload journal entries to record liquidation under each of the following cases: 1. Non-cash assets were sold for P200,000. Assume any deficient partner is solvent. 2. Non-cash assets were sold at a loss of P515,000. Assume any deficient partner is solvent. 3. Non-cash assets were sold for P200,000. Assume any deficient partner is insolvent. 4. Nnon-cash assets were sold at a loss of P515,000. Assume any deficient partner is insolvent. 2. Prepare and upload statement of liquidation for Item 1d.

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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Problem 1 At the end of the its first year of operations on December 31, 2020, HEART ATTACK Company's accounts show the following: Capital P 48,000 P 30,000 P 25,000 Partner Drawings Mr. Chicharon P 23,000 P 14,000 P 10,000 Mr. Bulalo Mr. L. Kawali The capital balances represents each partner's initial capital investment. Therefore, net income or net loss for 2020 has not been closed to the partners' capital accounts. Instructions: a. Journalize the entry to record the division of net income for the year 2020 under each of the following independent assumptions. 1. Net income is P 30,000. Income is shared 6:3:1 2. Net income is P 40,000, Mr. Chicharon and Mr. Bulalo are given salary allowances of P 15,000 and P 10,000, respectively. The remainder is shared equally. 3. Net income is P 19,000. Each partner is allowed interest of 10% on beginning capital balances. Mr. Chicharon is given a P 15,0000 salary allowance. The remainder is shared equally b. Prepare a schedule showing the division…
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answer no. 17 only, pleasee, I only need the schedule of safe payments
Problem Solving : a. Gulane, Tormis and Sailadin decided to Liquidate their partnership in June 30, 2018. The partners shared profits and losses in the ratio 2:2:1 respectively. The firms post closing trial balance follows: Gulane, Tormis and Sailadin Post Closing Trial Balance June 30, 2018 Account Name Debit Credit P 419,170 Cash Merchandise Inventory Other Assets Accounts Payable Gulane Capital Tormis Capital Sailadin, Capital 612,300 472,680 P 131,350 561,600 436.800 374,400 1.504,150 1.504.150 The merchandise inventory and the other assets were sold for P 582,800 and P 550,900 respectively. Required : Prepare the Liquidation journal entries.
EXERCISE 8-10. Problem Solving 2: Gain or loss on realization of non-cash assets; capital deficiency absorption. Joshua, Daniel, and Martha were partners sharing profit and losses in the ratio of 1:2:1, respectively. On March 15, 2019, they decided to liquidate. Capital balances of Joshua, Daniel, and Martha were P215,000, P75,000, and P85,000, respectively. Liabilities amounting to P100,000 had yet to be settled. Total assets, inclusive of P35,000 cash, totaled P475,000. All non-cash assets were sold for only 30% of their book values. Liquidating expenses of P5,000 were also incurred. It was also determined that all partners, except Daniel, were solvent. REQUIRED: 1. How much was the gain or loss on non-cash asset realization? 2. How much cash should Martha infuse to satisfy the liquidation process of the partnership?
Problem 1 At the end of the its first year of operations on December 31, 2020, HEART ATTACK Company's accounts show the following: Partner Mr. Chicharon Mr. Bulalo Mr. L. Kawali Drawings P 23,000 P 14,000 P 10,000 Capital P 48,000 P 30,000 P 25,000 The capital balances represents each partner's initial capital investment. Therefore, net income or net loss for 2020 has not been closed to the partners' capital accounts. Instructions: a. Journalize the entry to record the division of net income for the year 2020 under each of the following independent assumptions. 1. Net income is P 30,000. Income is shared 6:3:1 2. Net income is P 40,000, Mr. Chicharon and Mr. Bulalo are given salary allowances of P 15,000 and P 10,000, respectively. The remainder is shared equally. 3. Net income is P 19,000. Each partner is allowed interest of 10% on beginning capital balances. Mr. Chicharon is given a P 15,0000 salary…
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EXERCISE 8-9. Problem Solving 1: Selling price of non-cash assets; cash distribution. As of December 31, 2019, the books of May, Mae, and Mei showed capital balances of P300,000, P250,000, and P100,000, respectively, and cash balance of P25,000. They shared profits and losses equally. On that date, the partners decided to liquidate due to personal reasons. They sold all non-cash assets to Mia at a loss of P90,000. After settling the liabilities to external creditors amounting to P100,000, the partnership had enough cash to distribute to the partners that included a loan from May in the amount of P12,000. REQUIRED: 1. How much were the non-cash assets sold for? 2. How much cash was distributed to each partner?
Instruction: Prepare the answers in written form using a clean paper (e.g. Yellow pad, bond paper, notebook etc.) and submit a snapshot in CANVAS. Assume A, B, C and D are partners sharing profits 40%, 20%, 20%, 20%, respectively. On January 1, 2020, they agree to liquidate. A balance sheet prepared on this date is shown as follows: Assets Liabilities and Capital Non- Cash assets P 181,800 Liabilities P 84,000 A, Loan 6,000 D, Loan 3,000 A, Capital 26,400 В, Сapital C, Capital D, Capital 25,800 20,400 16,200 Total P 181,800 P 181,800 Results of liquidation are summarized below: Month Proceeds Book Value Liquidation exp. Cash withheld January P72,000 P90,000 P1,200 P4,800 February 21,600 30,000 1,320 1,800 March 19,200 24,000 1,440 1,200 April 6,000 19,800 4,800 600 May 2,400 18,000 960 Required: Prepare the statement of liquidation and related schedule of safe payment for the month of January to May 2020 and determine payment to partners for every month.
The total effects of the errors in the capital of the firm (ignore income tax effect) a. Understated by P1,000 b. Understated by P1,000 c. Overstated by P9,000 d. Overstated by P4,000
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