nstallment 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 5,000 Other 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 of available cash4. Journal entries to record the liquidation of the partnership
Installment Liquidation: Practice ProblemEspeleta and De Guia decided to dissolve and liquidate Espeleta and De Guia on Sept. 23, 2019. On that date, the
Espeleta and De GuiaStatement of Financial PositionSept. 23, 2019
Assets
Cash P 5,000
Other 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
Required:1. Partnership liquidation statement2. Schedule of safe payments3. Cash priority program including distribution of available cash4.
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