Partners A,B and C decided to liquidate their business on January 31, 2021 and showed the following financial position: ASSETS LIABILITIES & STOCKHOLDER'S EQUITY Cash28,000 Accounts Payable14,400Non-Cash Assets36,000 Loan Payable to A4,000 A, Capital8,000 B, Capital16,000 C, Capital21,600Totals64,000 Totals64,000 It was also agreed that cash distribution be made at the end of each monthprovided there was sufficient cash for this purpose. Profit and loss ratio was 2:1:2 respectively. The liquidation transactions for the months of February, March and April wereas Follows: Cash ProceedsBV of Assets SoldLiabilities paidLiquidation ExpenseRestricted Cash for future expensesFebruary8,00012,00012,0002,4001,600March12,80016,0002,4001,600800April6,4008,000 800 Note: The statement of liquidation is supported by schedule of safe payments.Required: Prepare a liquidation Table and schedule of safe payments Please help me. I need solutions with explanations. This is due tomorrow :((

Given in the question: Non Cash assets are sold during different months Computation of Loss on sale…

Answered: Prepare a liquidation Table and…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Hawkeye Corporation starts business on April 2, 2023. The corporation reports startup expenditures of $64,000 all incurred in the prior year. Determine the total amount that Hawkeye Corporation can elect to deduct in 2023. O a. $0 O b. $3,200 O c. $4,267 O d. $7,950
During 2018, the following events occurred: 1. Addilional inventory was acquired during he year at a cost of P 354,000 and recprded using the perpetual inventory system. As of December 31, 2018, the partnership owedn70,800 to its suppliers. 2 In order to facilitate startup operations, the partnership borTowed P 500,000 from a bank on May 1, 2018. The borowing was evidenced by a 9% interest bearing note and interest is payable semi-annually. Interest payments due for 2018 are accordingly paid by the partnership. 3. Sales on account amounted to P1,829,000 with related cost of goods sold of P1,058,000. At December 31, 2018, customers owed the partnership P247,300. 4. Selling and general expenses, exduding depreciation and interest, amounted to P401 200. On December 31, 2018, P 73,160 of these expenses are unpaid. 5. The partnership pays a weekly salary of P 12,800 which is payable every Friday. December 31, 2018 falls on a Thursday and this accrual is not yet recorded in the partnership…
Assume that on January 1 of the current year, with the netrealizable value of accounts receivable equal to 470,000, thecompany decided to factor 400,000 of accounts receivable toGustav Factors, Ltd. Gustav retains 6% of the amount factored as a reserve or hold back. Gustav Factors also charged Council a 4%financing fee (4% of the total factored amount). As a result, only90% of the proceeds are remitted.Instruction: Prepare the journal entry to record the factoring of400,000 of account receivable assuming that Council sold thereceivable with recourse.
Edible Chemicals Corporation owns a $4 million whole life insurance policy on the life of its CEO, naming EdibleChemicals as beneficiary. The annual premiums are $70,000 and are payable at the beginning of each year. Thecash surrender value of the policy was $21,000 at the beginning of 2018.Required:1. Prepare the appropriate 2018 journal entry to record insurance expense and the increase in the investmentassuming the cash surrender value of the policy increased according to the contract to $27,000.2. The CEO died at the end of 2018. Prepare the appropriate journal entry
Emilio Co. insured the life of its president for P8,000,000, the entity being the beneficiary of an ordinary life insurance policy. The annual premium is P500,000 and the policy is dated January 1, 2021. The cash surrender values are: December 31, 2023 December 31, 2024 P450,000 570,000 The entity follows the calendar year as its fiscal period. The president died on October 1, 2024 and the policy is settled on December 31, 2024. 1. What amount should Emilio Co. report as gain on life insurance settlement in its 2024 profit or loss? 2. What amount should Emilio Co. report as life insurance expense for 2024?
Balintawak Inc. insured the life of its president for P4,000,000, the corporation being the beneficiary of an ordinary life policy. The monthly premium is P22,500 payable every first day of the month. The policy is dated January 1, 2019 and carries the following cash surrender values: End of policy year 2019 2020 2021 2022 2023 2024 Cash surrender value 94,500 112,500 148,500 189,000 The corporation follows the calendar year as its fiscal period. The president died on October 1, 2024. What is the gain on life insurance policy?
In 2015, Maine Corporation bought a $5,000,000 life insurance policy on its president, of which Maine Corporation is the beneficiary. Information regarding the policy for the year ended December 31,2020 follows: Cash surrender value, 1/1/2020 : $435,000 Cash surrender value, 12/31/2020 : $540,000 Annual advance premium paid 1/1/2020 : $200,000 During 2020, dividends of $30,000 were applied to increase the cash surrender value of the policy. How much should be the life insurance expense for 2020?
Tandang Sora Corp. purchased a P5,000,000 ordinary life insurance policy on its president. Tandang Sora is the beneficiary under the policy. The policy year and Tandang Sora's accounting year coincide. Additional data available for the year ended December 31, 2024 are as follows: Cash surrender value, January 1 Cash surrender value, December 31 Annual advance premium paid January 1 Dividend received on July 1 What amount should be reported as life insurance expense for 2024? 348,000 432,000 160,000 24,000
Nakasiguro Company insured its president for P 5,000,000 with an annual premium, paid initially at the beginning of 2021, for P 80,000. Nakasiguro is the beneficiary. The following transactions aside from the regular premium payment, took place. Cash Surrender Value Dividends Received (at year end) 2023 P 60,000 P 5,000 2024 72,000 3,000 2025 84,000 - 2026 92,000 4,000 The President died April 1, 2026. How much is the Cash Surrender Value be reported, before any claim, when the President died? a. 66,000 b. 86,000 c. 64,000 d. 84,000
Question: The trial balance below relates to the Consolidated Fund for the year ended 31st December, 2019. GHc'000 GHc'000 Indirect Taxes 120,300 Direct Taxes 85,000 Non taxe revenues 60,000 Compensation for employees 76,000 Goods and services 45,000 Consumption of fixed consumption 24,000 Loans and advances 30,000 Bank and cash balances 12,000 Equity investment 40,000 Domestic debt 90,500 External debt 110,000 Trust fund 50,000 Sundry creditors 24,500 Other expenditures 20,000 Public debt interest 33,000 Social benefit 12,000 Grants 20,000 Subsidies 12,000 Accumulated Fund (1/12/16) 216,300 540300 540,300 Required: 1. Prepare Statement of Revenue and Expenditure for the Consolidated Fund for the year ended 31st December 2019. 2. Prepare Statement of Financial Position as at 31st December 2019.
On December 31, 2020, Petra Company invests $40,000 in Valery, a variable interest entity. In contractual agreements completed on that date, Petra established itself as the primary beneficiary of Valery. Previously, Petra had no equity interest in Valery. Immediately after Petra's investment, Valery presents the following balance sheet: Cash Marketing software Computer equipment Total assets 40,000 160,000 60,000 $ 260,000 $ Required A Long-term debt Noncontrolling interest Petra equity interest Total liabilities and equity Each of the amounts represents an assessed fair value at December 31, 2020, except for the marketing software. The December 31 business fair value of Valery is assessed at $160,000. Required B a. If the carrying amount of the marketing software was undervalued by $45,000, what amounts for Valery would appear in Petra's December 31, 2020, consolidated financial statements? Complete this question by entering your answers in the tabs below. b. If the carrying amount of…
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

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

Partners A,B and C decided to liquidate their business on January 31, 2021 and showed the
following financial position:

ASSETS			LIABILITIES & STOCKHOLDER'S EQUITY

Cash	28,000			Accounts Payable	14,400
Non-Cash Assets	36,000			Loan Payable to A	4,000
				A, Capital	8,000
				B, Capital	16,000
				C, Capital	21,600
Totals	64,000			Totals	64,000

It was also agreed that cash distribution be made at the end of each month
provided there was sufficient cash for this purpose.
Profit and loss ratio was 2:1:2 respectively.

The liquidation transactions for the months of February, March and April were
as Follows:
	Cash Proceeds	BV of Assets Sold	Liabilities paid	Liquidation Expense	Restricted Cash for future expenses
February	8,000	12,000	12,000	2,400	1,600
March	12,800	16,000	2,400	1,600	800
April	6,400	8,000		800

Note: The statement of liquidation is supported by schedule of safe payments.
Required: Prepare a liquidation Table and schedule of safe payments