nancial position is as follows: Valdez, Navarro and Pamittan Statement of Financial Position January 31, 2019 Assets
On Jan. 31, 2019, the partners Valdez, Navarro and Pamittan authorizedthe liquidation of their
Valdez, Navarro and Pamittan Statement of Financial Position January 31, 2019
Assets
Cash = 10,000
Loan Receivable-Navarro= 50,000
Other Assets (net) =240,000
Total assets = 300,000
Liabilities and Partners' Capital
Accounts Payable-Trade = 90,000
Loan Payable-Valdez = 60,000
Valdez, Capital =140,000
Navarro, Capital =(70,000)
Pamittan, Capital 80,000
Total Liabilities and Partners Capital = 300,000
Additional information for 2019:
a. The partners'
b. On Feb. 1, non-cash assets with a book value of P180,000 realized P140,000, and all available cash was paid to creditors and to partners.
c. On Feb. 4, non-cash assets with a boo.k value of P60,000 realized P50,000, and that amount was paid to partners.
d. On Feb. 5, Navarro, who was almost insolvent, paid P30,000 on the loan from the partnership. Valdez and Pamittan agreed that the partnership would receive no more cash from Navarro, and they instructed the accountant to close the partnership's accounting records.
Required:
1. Prepare the cash priority program.
2. Prepare the journal entries
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