Homework Help is Here – Start Your Trial Now!
Business
Accounting
January 2019, the events took place during the process of liquidating the partnershi Accounts receivable of P151,500 are collected, and the allowance for uncollectible 2 accounts is written off the books. Merchandise inventory is sold for P160,500. 32,600-5 A refund on the prepaid insurance is expected totaling P3,000. 4obo Jan. 6 11 uoro sold lump sum to Sibug Company for P111,000, The

January 2019, the events took place during the process of liquidating the partnershi Accounts receivable of P151,500 are collected, and the allowance for uncollectible 2 accounts is written off the books. Merchandise inventory is sold for P160,500. 32,600-5 A refund on the prepaid insurance is expected totaling P3,000. 4obo Jan. 6 11 uoro sold lump sum to Sibug Company for P111,000, The

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
Solution to this problem
Problem #13 Preparation of Journal Entries for Partnership Liquidation veade Masinsin and Biore are all famous athletes who have been operating a sports memorabilia store for many years. The partnership decided to liquidate its operation ther than sell the business because they are each about to retire and want to go their separate ways. They have been sharing profits in the ratio of 40% to Tugade, 40% to Masinsin, and 20% to Biore. The trial balance for their business on Jan. 1, 2019 follows: Trial Balance January 1, 2019 Cash Accounts Receivable Allowance for Uncollectible Accounts Merchandise Inventory P 42,000 189,600 (P 11,100/ 293,100 9,000 120,000 31,500 Prepaid Insurance Land Office Equipment Accu. Depreciation-Office Equipment Machinery Accu. Depreciation-Machinery Building Accu. Depreciation-Building Notes Payable Accounts Payable 10,500 81,600 32,100 375,000 112,500 120,000 Mortgage Payable Tugade, Capital Masinsin, Capital Biore, Capital Totals 220,500 240,000 135,000 60,000 200,100 P1,141,800 P1,141,800 January 2019, the events took place during the process of liquidating the partnership: Jan. 6 Accounts receivable of P151,500 are collected, and the allowance for uncollectible 3800 accounts is written off the books. Merchandise inventory is sold for P160,500. 32,600-055 A refund on the prepaid insurance is expected totaling P3,000. 4obo Property and equipment were sold lump sum to Sibug Company for P111,000. The mortgage on the building was also transferred to Sibug. The remaining creditors were paid in full. The deficit in Masinsin's capital account was absorbed by Tugade and Biore. The deficit in Tugade's capital account was absorbed by Biore. The remaining partnership cash is distributed to Biore. 9. 11 14 20 20 20 24
Transcribed Image Text:Problem #13 Preparation of Journal Entries for Partnership Liquidation veade Masinsin and Biore are all famous athletes who have been operating a sports memorabilia store for many years. The partnership decided to liquidate its operation ther than sell the business because they are each about to retire and want to go their separate ways. They have been sharing profits in the ratio of 40% to Tugade, 40% to Masinsin, and 20% to Biore. The trial balance for their business on Jan. 1, 2019 follows: Trial Balance January 1, 2019 Cash Accounts Receivable Allowance for Uncollectible Accounts Merchandise Inventory P 42,000 189,600 (P 11,100/ 293,100 9,000 120,000 31,500 Prepaid Insurance Land Office Equipment Accu. Depreciation-Office Equipment Machinery Accu. Depreciation-Machinery Building Accu. Depreciation-Building Notes Payable Accounts Payable 10,500 81,600 32,100 375,000 112,500 120,000 Mortgage Payable Tugade, Capital Masinsin, Capital Biore, Capital Totals 220,500 240,000 135,000 60,000 200,100 P1,141,800 P1,141,800 January 2019, the events took place during the process of liquidating the partnership: Jan. 6 Accounts receivable of P151,500 are collected, and the allowance for uncollectible 3800 accounts is written off the books. Merchandise inventory is sold for P160,500. 32,600-055 A refund on the prepaid insurance is expected totaling P3,000. 4obo Property and equipment were sold lump sum to Sibug Company for P111,000. The mortgage on the building was also transferred to Sibug. The remaining creditors were paid in full. The deficit in Masinsin's capital account was absorbed by Tugade and Biore. The deficit in Tugade's capital account was absorbed by Biore. The remaining partnership cash is distributed to Biore. 9. 11 14 20 20 20 24
Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Industry Specific Activities
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS