he balance sheet of Adel, Basel, and Yousef partnership on January 1, 2021 (the date ofpartnership liquidation) was as follows:AssetsCashOther assetsTotal assetsa. $5,800b. $4,200C. $0 xd. $2,500Liabilities & Equity$4,00026,000LiabilitiesAdel, Capital (20%)Basel, Capital (40%)Yousef, Capital (40%)$30,000 Total liabilities & equityIn January 2021 other assets with a book value of $16,000 were sold for $10,000 in cash. Usingthe safe payment schedule, how much cash did Basel receive?to$8,0003,0009,00010,000$30,000K

Partnership Liquidation ScheduleCashOther AssetsDebtAdel CapitalBesel CapitalYousef CapitalJan-1-…

Answered: he balance sheet of Adel, Basel, and…

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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Required: Prepare a statement of Partnership Liquidation
On September 23, 2021 – Pepsi and Coke have both decided to dissolve and liquidate their partnership. The balance sheet/statement of financial position on that date is as follows in the given picture. Required: 1. Prepare the cash priority program. 2. Prepare the liquidation journal entries and the statement of liquidation.
The balance sheet of the Maude, Ned, and Oscar partnership on November 1, 2014 (before commencement of partnership liquidation) was as follows: Cash $ 12,000 Georgia, capital (40%) $ 36,000 Holly, capital (30%) 6,000 Festus, capital (50%) 31,000Total assets $ 90,000 Total liab./equity $ 90,000 Cash $ 70,000 Accounts payable $ 42,000Inventory 60,000 Notes payable 68,000Loan to Maude 10,000 Maude, capital (20%) 30,000Loan to Oscar 18,000 Ned, capital (20%) 32,000Plant assets-net…
On October 1, 2020, Geri, Elma and Philip who share earnings 5:3:2, respectively, decided to liquidate their partnership at which time their condensed balance sheet was as follows:Cash- 50,000 Other assets- 250,000Liabilities- 60,000Geri, Capital- 80,000Elma, Capital- 90,000Philip, Capital- 70,000The first cash sale of assets booked at P150,000 resulted in net realization of P120,000. At this time Elma received P48,000.What is the amount of the expected liquidation expenses?
On September 15, 2021, LCM Partnership entered into liquidation. The partners' profit and loss ratios and capital balances on this date were as follows: L 25% 2,500,000.00 C 35% 5,400,000.00 M 40% 3,700,000.00 Total 11,600,000.00 The partnership has liabilities amounting to P 4,400,000, including a loan from C in the amount of P600,000. Cash on hand before starting the liquidation process is P 800,000. Non-cash assets amounting to P 7,400,000 were sold at book value and the remainder of the non-cash assets were sold at a loss of P 4,200,000. How much cash will be distributed to the partners?
On January 1, 2020, ACJ Partnership entered into liquidation. The partners capital balances on this date were as follows: A (25%) P2,500,000 ; C (35%) P5,400,000 ; J (40%) P3,700,000. The partnership has liabilities amounting to P4,400,000, including a loan from C P600,000. Cash on hand before the start of liquidation is P800,000. With the information given, answer the following independent situations: Noncash assets amounting to P7,400,000 were sold at book value and the rest of the noncash assets were sold at a loss of P4,200,000. How much cash will be distributed to the partners?A. 8,000,000B. 4,400,000C. 7,400,000D. 11,800,000 After exhausting the noncash assets of the partnership, assuming all partners has personal assets more than their personal liabilities. How much cash must be invested by the partners to satisfy the claims of the outside creditors and to pay the amount due to the partner/s? A.3,680,000B. 4,480,000C. 4,360,000D. 3,800,000 If C received P2,255,000, How much was…
Shadow, Ego and Self have decided to liquidate their partnership on December 1,2021. The statement of financial position is shown below: (Pls see picture)
Items 18 to 20 are based on the following data. The partnership business of John Estrada and Peter Arroyo was formed on January 2, 2020. At that date, the following assets were invested as derived from their respective sole proprietor's books. Book of Estrada Book of Arroyo 160,000 Cash. .P145,000 Accounts receivable. 80,000 50,000 Allowance for doubtful accounts. (5,000) (3,000) Merchandise inventory. 200,000 190,000 Partner's agreement as follows: 1. Estrada and Arroyo's adjusted capital contributions must be equal. In the event that one's contribution will exceed the other, any one of them shall withdraw "Cash" from their respective investment. 2. Their respective Accounts receivable should have a probability of collections. 80% for Estrada and 90% for Arroyo. 3. Merchandise inventory will be caried in the partnership book "as is". 4. Prepaid expense of P20,000 should be recognized for Estrada and P5,000 Accrued expenses for Arroyo. 18. How much is the adjusted capital contribution…
The following are the account balances as of June 30, 2022 of JPP Partnership just before liquidation:Cash - 100000Inventory - 600000Furniture - 200000Equipment - 400000Accounts Payable - 200000Loans from Pedro - 200000Juan, capital - 20% - 300000Pedro, capital -35% - 310000Pablo, capital - 45% - 280000The following events occurred thereafter:Jul 1 - Equipment was sold for P380,000Jul 15 - Furniture was sold for P 210,000Jul 30 - Inventory with book value of P500,000 was sold for P200,000Aug 15 - Remaining inventory was sold for P 80,000a. Prepare a liquidation report.b. Prepare a cash distribution report/computation for safe payment for each time the partnership will be paying off the partners.c. Prepare a cash priority program and show how it can be used to settle the partner’s equity balances.d. Indicate on the space provided the total cash each partner would receive.
On February 28, 2023, the partners Anna, Juan. Berto authorized the liquidation of their partnership. The statement of financial position is as follows: AAA Statement of Financial Position February 28, 2023 Cash Non-cash assets Total Assets P10,000 Accounts Payable 290,000 Ana, Capital Required: a. Prepare the Cash Priority Program b. Prepare the journal entries for March 1, and March 4, 2023 P300,000 Juau, Capital Berto, Capital Total Liabilities and Capital P100,000 100,000 20,000 80,000 P300,000 Additional Informatic 1. The partner's profit and loss ratio were Amma, 40%; Juan, 40% and Berto 20% 2. On March 1, 2023, non-cash assets with a book value of P200,000 realized P150,000, and all available cash was paid to creditors and to partners. 3. On March 4, 2023. non-cash assets with a book value of P90,000 realized P70,000, and that amount was paid to partners.
On October 1, 2020, Geri, Elma and Philip who share earnings 5:3:2, respectively, decided to liquidate their partnership at which time their condensed balance sheet was as follows:Cash- 50,000 Other assets- 250,000Liabilities- 60,000Geri, Capital- 80,000Elma, Capital- 90,000Philip, Capital- 70,000The first cash sale of assets booked at P150,000 resulted in net realization of P120,000. At this time Elma received P48,000.What is the amount of the expected liquidation expenses?
On October 1, 2020, Geri, Elma and Philip who share earnings 5:3:2, respectively, decided to liquidate their partnership at which time their condensed balance sheet was as follows:Cash- 50,000 Other assets- 250,000Liabilities- 60,000Geri, Capital- 80,000Elma, Capital- 90,000Philip, Capital- 70,000The first cash sale of assets booked at P150,000 resulted in net realization of P120,000. At this time Elma received P48,000.What was the amount received by Philip?

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