On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership. The following information was made available: Cash 20,000 Accounts receivable 60,000 Inventory 120,000 Equipment 300,000 Total 500,000 Accounts payable 30,000 Payable to B 20,000 A, Capital (20%) 100,000 B, Capital (30%) 150,000 C, Capital (50%) 200,000 Total 500,000 Case #1: Information on the conversion of non-cash assets is as follows: a. P50,000 was collected on accounts receivable; the balance is uncollectible. b. P70,000 was received for the entire inventory. c. The equipment was sold for P250,000 d. P2,000 liquidation expenses were paid. a. The net cash proceeds from assets excluding cash b. The carrying amount of non-cash assets c. The total loss on sale
On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership. The following information was made available: Cash 20,000 Accounts receivable 60,000 Inventory 120,000 Equipment 300,000 Total 500,000 Accounts payable 30,000 Payable to B 20,000 A, Capital (20%) 100,000 B, Capital (30%) 150,000 C, Capital (50%) 200,000 Total 500,000 Case #1: Information on the conversion of non-cash assets is as follows: a. P50,000 was collected on accounts receivable; the balance is uncollectible. b. P70,000 was received for the entire inventory. c. The equipment was sold for P250,000 d. P2,000 liquidation expenses were paid. a. The net cash proceeds from assets excluding cash b. The carrying amount of non-cash assets c. The total loss on sale
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership . The following information was made available:
Cash 20,000
Accounts receivable 60,000
Inventory 120,000
Equipment 300,000
Total 500,000
Accounts payable 30,000
Payable to B 20,000
A, Capital (20%) 100,000
B, Capital (30%) 150,000
C, Capital (50%) 200,000
Total 500,000
Case #1:
Information on the conversion of non-cash assets is as follows:
a. P50,000 was collected on accounts receivable; the balance is uncollectible.
b. P70,000 was received for the entire inventory.
c. The equipment was sold for P250,000
d. P2,000 liquidation expenses were paid.
a. The net cash proceeds from assets excluding cash
b. The carrying amount of non-cash assets
c. The total loss on sale
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