prepare the statement of liquidationand computation losses equally. Their financial position prior to liquidation follows:Lump-sum LiquidationPartnership is insolvent and partner/s are personally insolvent.Exercise 3.. Victor and Vincent are partners in Valentine partnership. They share profits andValentine PartnershipStatement of Financial PositionAs at August 31, 20xxAssetsLiabilities and CapitalCashP 80,000LiabilitiesP 480,000Vic, CapitalVictor, CapitalVincent, CapitalTotal Liabilities and Capital P 880,000Non-cash Assets800,00040,000120,000240,000Total AssetsP 880,000The personal assets and liabilities of the partners, beside their equities in thepartnership, are as follows:Personal AssetsPersonal LiabilitiesPartnersP300,000P800,000P500,000VicP500,000VictorP140,000VincentP 40,000Solvent partners are going to invest when cash is needed. Non-cash assets are soldfor P425,000, Liabilities in the amount of P480,000 are paid.Required: Prepare the statement of liquidation.

Workings Computation of personal assets realized value Vic PHP Victor PHP Vincent PHP…

Answered: Lump-sum Liquidation Partnership is…

Lump-sum Liquidation Partnership is insolvent and partner/s are personally insolve- nd Vincent are partners in Valentine partnershin ThouI

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 the statement of liquidation.. Vic, Victor and Vincent are partners in Valentine partnership. They share profits and losses equally. Their financial position prior to liquidation follows: Lump-sum Liquidation Partnership is insolvent and partner/s are personally insolvent. Exercise 3. Valentine Partnership Statement of Financial Position As at August 31, 20xx Assets Liabilities and Capital P 80,000 800,000 Liabilities Cash Non-cash Assets P 480,000 40,000 Vic, Capital Victor, Capital Vincent, Capital Total Liabilities and Capital P 880.000 120,000 240.000 Total Assets P 880,000 The personal assets and liabilities of the partners, beside their equities in the partnership, are as follows: Personal Assets Personal Liabilities Partners P800,000 P500,000 : P 40,000 P300,000 P500,000 Vic Victor P140,000 Vincent Solvent partners are going to invest when cash is needed. Non-cash assets are sold for P425,000. Liabilities in the amount of P480,000 are paid.
5.1 Al and Tantay are partners sharing profits equally. The condensedbalance sheet of their partnership prior to liquidation is shownbelow: Assets Liabilities and EquityCash P1,900 Accounts Payable P 27,200Accounts Receivable 7,200 Al Capital 15,000Merchandise Inventory 16,400 Tantay Capital 5,000Equipment 21,700 P 47,200 P 47,200They decided to liquidate and the assets realized the followingamounts in cash:Accounts Receivable P 4,200Merchandise 11,200Equipment 16,000REQUIRED: Prepare working paper for the Statement of Liquidation using the lump sum liquidation method and give all the corresponding journal entries…
A partnership has decided to liquidate its operations. Prior to beginning the liquidation process, the partnership had cash balances of $12,000 and noncash assets of $210,000. At that time liabilities were $125,000 of which $25,000 represented a note payable to Partner B. The capital information for the current partners is as follows: Partner A Partner B Partner CProfit and loss percentages . . . . . . . . . . . 50% 30% 20%Capital balances . . . . . . . . . . . . . . . . . . . .$75,000 $42,000 $(20,000)The following events occurred over the four-month liquidation period, and it was decided that all available cash would be distributed at the end of each month.Month 1—Payments of $35,000 were received on accounts receivable with a book value of $43,000, and the balance of those accounts were written off. A $12,000 allowance for uncollectible accounts was established against…
D1. Account
The CDG Carlos, Dan, and Gall Partnership has decided to liquidate as of December 1, 20X6. A balance sheet on the date follows: Assets Cash Accounts Receivable (net) Inventories Property, Plant and Equipment (net) Total Assets Liabilities and Capital Liabilities: Accounts Payable Capital: CDG PARTNERSHIP Balance Sheet At December 1, 20x6 Carlos, Capital Dan, Capital Gail, Capital Total Capital Total Liabilities and Capital $138,000 68,000 78,000 Personal assets Personal liabilities Personal net worth $ 34,000 93,000 118,000 336,000 $581,000 $297,000 284,000 $581,000 Additional Information 1. Each partner's personal assets (excluding partnership capital interests) and personal liabilities as of December 1, 20X6, follow: Carlos Dan Gail $ 268,000 $310,000 $368,000 (239,000) (231,000) (340,000) $ 87,000 $ 28,000 $ 29,000 2. Carlos, Dan, and Gall share profits and losses in the ratio 15:45:40, 3. CDG sold all noncash assets on December 10, 20X6, for $276,000.
k The Pen, Evan, and Torves Partnership has asked you to assist in winding-up its business affairs. You compile the following information: 1. The partnership's trial balance on June 30, 20X1, is Cash Accounts Receivable (net) Inventory Plant and Equipment (net) Accounts Payable Pen, Capital Evan, Capital Torves, Capital Total Profit and loss percentages Preliquidation capital balances Loss absorption potential (capital balances/loss percent) Decrease highest LAP to next highest Debit $ 7,808 34,000 24,808 99,908 Decrease LAPs to next highest: $ 164,908 2. The partners share profits and losses as follows: Pen, 50 percent; Evan, 25 percent; and Torves, 25 percent. 3. The partners are considering an offer of $110,000 for the firm's accounts receivable, inventory, and plant and equipment as of June 30. The $110,000 will be paid to creditors and the partners in installments, the number and amounts of which are to be negotiated. Required: Prepare a cash distribution plan as of June 30, 20X1,…
2) After the realization of non-cash assets, the following account balances appeared in the genera ledger of the partnership of See, Chap, and Pooh. Cash P 10,000 Liabilities 30,000 Pooh,Loan 5,000 See,Capital 15,000 Chap,Capital 10,000 Pooh,Capital 10,000 Profits are shared 2:4:4 for See, Chapand Pooh, respectively. Pooh is insolvent. Q3. How much additional investment did Chap make? a. 10,000 b. 14,000 c. 15,000 d. 20,000
2) After the realization of non-cash assets, the following account balances appeared in the genera ledger of the partnership of See, Chap, and Pooh. Cash P 10,000 Liabilities 30,000 Pooh,Loan 5,000 See,Capital 15,000 Chap,Capital 10,000 Pooh,Capital 10,000 Profits are shared 2:4:4 for See, Chapand Pooh, respectively. Pooh is insolvent. Q2. How much did See receive in the liquidation? a. 0 b. 3,000 c. 5,000 d. 15,000
2) After the realization of non-cash assets, the following account balances appeared in the genera ledger of the partnership of See, Chap, and Pooh. Cash P 10,000 Liabilities 30,000 Pooh,Loan 5,000 See,Capital 15,000 Chap,Capital 10,000 Pooh,Capital 10,000 Profits are shared 2:4:4 for See, Chapand Pooh, respectively. Pooh is insolvent. 1. How much was the loss on realization? a. 50,000 b. 60,000 c. 70,000 d. 80,000
Subject : Accounting
Chen, Korhonen, Lebuca, and Swid are partners who share profits and losses on a 4:3:2:1 basis, respectively. They are beginning to liquidate the business. At the start of this process, capital balances are Chen, capital Korhonen, capital Lebuca, capital Swid, capital Required: $ 62,000 27.600 45,000 20,600 Prepare a predistribution plan to determine which partner will be the first to receive cash from the liquidation and what amount that partner will receive before other partners receive any cash. Note: Amounts to be deducted should be entered with a minus sign. Beginning balances Assumed loss Balances Assumed loss Balances Assumed loss Balances * Answer is not complete. Chen Korhonen Lebuca Swid 62,000 $ $ 92,000 (36.800) 27,600 $ (27,600) 45,000 $ (18,400) 20,600 (9,200) $ 25,200 $ 0 $ 26,600 $ 11,400 (25.200)
Problem-solving Admissionby Purchase of Interest or Investment of AssetsAngeles. Bondoc and Campos have equities in a partnership as follows: Angeles 300,000 Bondoc 750,000 Campos 700.000 and share of profits and losses in a ration of 5.3.2, respectively. The partners have agreed to admit Dantes to the partnership REQUIRED Prepare the journal entries to record the admission of Dantes to the partnership under each of the following assumptions.1. Dantes paid Angeles P450.000 for his full interest 2. Dantes invested P500,000 for a 25% interest, and bonus is recorded for Dantes 3 Dantes invested P600,000 for a 20% interest, and bonus is recorded for the old partners.