Requirement: Prepare schedule of safe payments Installment LiquidationEspeleta and De Guia decided to dissolve and liquidate Espeleta and De Guia on Sept.23, 2019. On that date, the statement of financial position of the partnership is asfollows:Espeleta and De GuiaStatement of Financial PositionSept. 23, 2019AssetsLiabilities and Partners' CapitalCashP 5,000P 15,000Accounts Payable-TradeLoan Payable-De GuiaEspeleta, CapitalDe Guia, CapitalOther Assets100,00010,00060,00020,000P105,000TotalP105,000TotalOn Sept. 23, 2019, non-cash assets with a carrying amount of P70,000 realized P60.000.and P64.000 was paid to creditors and partners, P1,000 being retained to cover possibleliquidation costs. On Oct. 1, 2019, the remaining non-cash assets realized P18.000 (netof liquidation costs), and all available cash was distributed to partners. Espeleta and DeGuia share profits and losses 40% and 60%, respectively.

Installment Liquidation Espeleta and De Guia decided to dissolve and liquidate Espeleta and De Guia on Sept 23, 2019. On that date, the statement of financial position of the partnership is as follows: Espeleta and De Guia Statement of Financial Position Sept. 23, 2019 Assets Liabilities and Partners' Capital Accounts Payable-Trade Loan Payable-De Guia Espeleta, Capital De Guia, Capital P 5,000 100,000 Cash P 15,000 Other Assets 10,000 60,000 20,000 P105,000 Total P105,000 Total On Sept. 23, 2019, non-cash assets with a carrying amount of P70,000 realized P60,000. and P64,000 was paid to creditors and partners, P1,000 being retained to cover possible liquidation costs. On Oct. 1, 2019, the remaining non-cash assets realized P18,000 (net of liquidation costs), and all available cash was distributed to partners. Espeleta and De Guia share profits and losses 40% and 60%, respectively.

Installment Liquidation Espeleta and De Guia decided to dissolve and liquidate Espeleta and De Guia on Sept 23, 2019. On that date, the statement of financial position of the partnership is as follows: Espeleta and De Guia Statement of Financial Position Sept. 23, 2019 Assets Liabilities and Partners' Capital Accounts Payable-Trade Loan Payable-De Guia Espeleta, Capital De Guia, Capital P 5,000 100,000 Cash P 15,000 Other Assets 10,000 60,000 20,000 P105,000 Total P105,000 Total On Sept. 23, 2019, non-cash assets with a carrying amount of P70,000 realized P60,000. and P64,000 was paid to creditors and partners, P1,000 being retained to cover possible liquidation costs. On Oct. 1, 2019, the remaining non-cash assets realized P18,000 (net of liquidation costs), and all available cash was distributed to partners. Espeleta and De Guia share profits and losses 40% and 60%, respectively.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter19: Accounting For Partnerships

Section: Chapter Questions

Problem 5SEB

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Installment Liquidation: Practice ProblemEspeleta and De Guia decided to dissolve and liquidate Espeleta and De Guia on Sept. 23, 2019. On that date, the statement of financial position of the partnership is as follows: Espeleta and De GuiaStatement of Financial PositionSept. 23, 2019 Assets Cash P 5,000Other Assets 100,000 Liabilities and Partners’ Capital Accounts Payable-TradeP 15,000 Loan Payable-De Guia 10,000 Espeleta, Capital 60,000 De Guia, Capital 20,000 On Sept. 23, 2019, non-cash assets with a carrying amount of P70,000 realized P60,000, and P64,000 was paid to creditors and partners, P1,000 being retained to cover possible liquidation costs. On Oct. 1, 2019, the remaining non-cash assets realized P18,000 (net of liquidation costs), and all available cash was distributed to partners. Espeleta and De Guia share profits and losses 40% and 60%, respectively. Required:1. Partnership liquidation statement2. Schedule of safe payments3. Cash priority program including distribution…
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