I. EXERCISES A. Karen, Kim, Kristine who share profits and losses in the ratio of 4:4:2, respectively, decide to liquidate their partnership on September 30, 2020. The condensed statement of financial position is presented below just prior to liquidation. BGC Partnership Statement of Financial Position December 31, 2019 ASSETS LIABILITIES AND EQUITY Cash P 8,000 Liabilities P 44,800 Other Assets 136, 000 Kim, Loan 2,000 Kristin, Loan 3,200 Karren, Capital 38,000 Kim, Capital 24,000 Kristin, Capital 32,000 Total Assets P 144,000 Total Liabilities and Equity P 144,000 Instruction: Prepare a statement of Liquidation and the required journal entries for each of the following cases and supporting schedule of cash distribution, if necessary assuming cash is immediately distributed to the proper parties. Assume also that the deficient partner/s will invest cash which is then distributed as second payment to the proper parties. Case 1 P 140,000 Case 2 100,000 Case 3 P 74,000 Case 4 68,000 Deficient Partner is Solvent Case 5 P 68,000 Deficient Partner is insolvent
I. EXERCISES A. Karen, Kim, Kristine who share profits and losses in the ratio of 4:4:2, respectively, decide to liquidate their partnership on September 30, 2020. The condensed statement of financial position is presented below just prior to liquidation. BGC Partnership Statement of Financial Position December 31, 2019 ASSETS LIABILITIES AND EQUITY Cash P 8,000 Liabilities P 44,800 Other Assets 136, 000 Kim, Loan 2,000 Kristin, Loan 3,200 Karren, Capital 38,000 Kim, Capital 24,000 Kristin, Capital 32,000 Total Assets P 144,000 Total Liabilities and Equity P 144,000 Instruction: Prepare a statement of Liquidation and the required journal entries for each of the following cases and supporting schedule of cash distribution, if necessary assuming cash is immediately distributed to the proper parties. Assume also that the deficient partner/s will invest cash which is then distributed as second payment to the proper parties. Case 1 P 140,000 Case 2 100,000 Case 3 P 74,000 Case 4 68,000 Deficient Partner is Solvent Case 5 P 68,000 Deficient Partner is insolvent
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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