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EXERCISE 8-6. Journal Entries and Statement Preparation 2: With capital deficiency; solvent partner/s. The partners in the law firm of Mega, Nega, and Pipa had stro opinion concerning client acceptance policies that made them decide to liquidate the business on February 14, 2019. As of December 31, 2018, their capital balances 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 expe 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 journal entries to record liquidation under each of the following cases: 1. The non-cash assets were sold for P200,000. The deficient partner/s was/were solvent partner/s. 2. The non-cash assets were sold at a loss of P515,000. The deficient partner/s was/were solvent partner/s. 2. Prepare statement of liguidation for Item 1b

EXERCISE 8-6. Journal Entries and Statement Preparation 2: With capital deficiency; solvent partner/s. The partners in the law firm of Mega, Nega, and Pipa had stro opinion concerning client acceptance policies that made them decide to liquidate the business on February 14, 2019. As of December 31, 2018, their capital balances 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 expe 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 journal entries to record liquidation under each of the following cases: 1. The non-cash assets were sold for P200,000. The deficient partner/s was/were solvent partner/s. 2. The non-cash assets were sold at a loss of P515,000. The deficient partner/s was/were solvent partner/s. 2. Prepare statement of liguidation for Item 1b

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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need help with exercise 8-7

EXERCISE 8-6. Journal Entries and Statement Preparation 2: With capital deficiency; solvent 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, 2019. As of December 31, 2018, 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 P660,00O, respectively. Cash revenues and expenses for 2019 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 journal entries to record liquidation under each of the following cases: 1. The non-cash assets were sold for P200,000. The deficient partner/s was/were solvent partner/s. 2. The non-cash assets were sold at a loss of P515,000. The deficient partner/s was/were solvent partner/s. 2. Prepare statement of liquidation for Item 1b.
Transcribed Image Text:EXERCISE 8-6. Journal Entries and Statement Preparation 2: With capital deficiency; solvent 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, 2019. As of December 31, 2018, 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 P660,00O, respectively. Cash revenues and expenses for 2019 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 journal entries to record liquidation under each of the following cases: 1. The non-cash assets were sold for P200,000. The deficient partner/s was/were solvent partner/s. 2. The non-cash assets were sold at a loss of P515,000. The deficient partner/s was/were solvent partner/s. 2. Prepare statement of liquidation for Item 1b.
EXERCISE 8-7. Journal Entries and Statement Preparation 3: With capital deficiency; insolvent partner/s. Refer to Exercise 8-6. REQUIRED: 1. Prepare journal entries to record liquidation under each of the following cases: 1. The non-cash assets were sold for P200,000. The deficient partner/s was/were insolvent partner/s. 2. The non-cash assets were sold at a loss of P515,000. The deficient partner/s was/were insolvent partner/s. 2. Prepare statement of liquidation for Item 1b.
Transcribed Image Text:EXERCISE 8-7. Journal Entries and Statement Preparation 3: With capital deficiency; insolvent partner/s. Refer to Exercise 8-6. REQUIRED: 1. Prepare journal entries to record liquidation under each of the following cases: 1. The non-cash assets were sold for P200,000. The deficient partner/s was/were insolvent partner/s. 2. The non-cash assets were sold at a loss of P515,000. The deficient partner/s was/were insolvent partner/s. 2. Prepare statement of liquidation for Item 1b.
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