Prepare a Statement of Partnership Liquidation and the entries to record the following:1. Sale of all non-cash assets2. Distribution of gain on realization to the partners3. Payment of the liabilities4. Distribution of cash to the partners After several years of operations, the partnership of Arenas, Dulay and Laurente is to be liquidated. After makingthe closing entries on June 30, 2018, the following accounts remained open:Account TitleDebitCreditCashP50,000Non-cash Assets2,350,000LiabilitiesP400,000Arenas, Capital900,000Dulay, Capital500,000Laurente, Capital600,000The non-cash assets are sold for P2,650,000. Profits and losses are shared equally.Prepare a Statement of Partnership Liquidation and the entries to record the following:1. Sale of all non-cash assets2. Distribution of gain on realization to the partners3. Payment of the liabilities4. Distribution of cash to the partners

Partnership liquidation Statement: It is a statement showing the closure of capital A/Cs of partners…

Prepare a Statement of Partnership Liquidation and the entries to record the following: 1. Sale of all non-cash assets 2. Distribution of gain on realization to the partners 3. Payment of the liabilities 4. Distribution of cash to the partners

Prepare a Statement of Partnership Liquidation and the entries to record the following: 1. Sale of all non-cash assets 2. Distribution of gain on realization to the partners 3. Payment of the liabilities 4. Distribution of cash to the partners

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter23: Accounting For Partnerships

Section: Chapter Questions

Problem 3AP

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After years of operations, the partnership of De Vera, Dela Cruz, De Jesus is to be liquidated. After making the closing entries on February 28, 2022, the following accounts were left: Account Debit Credit Cash Non-cash Assets Liabilities De Vera, Capital Dela Cruz, Capital De Jesus, Capital 50,000 2,350,000 400,000 900,000 500,000 600,000 All the non-cash assets were sold for P2,650,000. Profits and losses are shared equally. Required: a. Prepare the statement of partnership liquidation b. Prepare the journal entries for the following: Sale of all non-cash assets and distribution of loss on realization to the partners • Payment of liabilities • Distribution of cash to the partners
The partnership of Folly and Frill is in the process of liquidation. On January 1, 2021, the booksshow account balances as follows:Cash 10,000 Accounts Payable 15,000Accounts Receivable 25,000 Folly Capital 40,000Lumber Inventory 40,000 Frill Capital 20,000On January 10, 2021, the lumber inventory is sold for $25,000. During January, AccountsReceivable of $21,000 are collected. No further collections on the receivables are expected.Profits are shared 60% to Folly and 40% to Frill.1) Compute the final distribution to Folly2) Compute the final distribution to Frill
The partnership of Anthony and Davis had an unprotitable year and agreed to liquidate their business on December 31, 2019. The Statement of Financial Position as of December 31, 2019 is presented below: ASSETS P 1,000 Cash P 80,000 20,000 Accounts Receivable Less Allowance for Bad Debts Merchandise Inventory Prepaid Advertising Office Equipment Less Accumulated Depreciation TOTAL ASSETS 60,000 50,000 2,000 P 100,000 60,000 40.000 P 153,000 LIABILITIES AND EQUITY Accounts Payable Notes Payable (due October 31, 2020) Anthony, Capital Davis, Capital P 20,000 86,000 30,000 17,000 P 153,000 TOTAL LIABILITIES AND EQUITY The information concerning liquidation are as follows: 1. Accounts receivable's net carrying value plus 20% of the estimated bad debts were collected. 2. Merchandise inventory were realized for P 25,000 3. The contract for Prepaid Advertising has a cancellation value of P 800. 4. Office Equipment were realized equal to 60% of their book value. 5. Unrecorded Accounts Payable…
The balance sheet of Ana, Eva and Nora partnership, just before liquidation on June 4, is as follows: Cash P6,000 Liabilities P70,000 Non-cash assets 94,000 Eva, loan 4,000 Ana capital (40%) Eva capital(40%) Nora, capital (20%) 27,000 39,000 10,000 Total P100,000 Total P100,000 On June 4,2012, other assets were sold for P30,700 and P20,500 had to be paid to liquidate the liabilities because of unrecorded claims amounting to P500. Ana and Eva are personally solvent, but Nora's personal liabilities exceed personal assets by P6,000. How much cash should be distributed to partners? Ana Eva Nora а. Р1,480 P17,480 PO b. 100 16,100 2,760 C. 100 16,100 d. 1,480 16,100 е. None of the above
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Victory Worship Partnership has the following account balances before liquidation (see attached photo):During December, some non-cash assets were sold for a loss of P1,845. Liquidation expenses of P7,000 were paid and additional expenses amounting to P3,600 were expected to be incurred through the following months of liquidating the partnership. Liabilities to outsiders amounting to P35,000 were paid. What is the book value of non-cash assets sold for Co to receive P22,222?
ABC partnership whose owners consist Ateng, Bagio and Cecep share profits with a ratio of 5: 3: 2. On May 31, 2018 The Fellowship was liquidated. Statement of financial position ahead of liquidation as follows: Equipment Accumulated Depreciation Inventory Account Receivable Cash Total ABC Firm Financial Position Statement May 31 2018 (in $) 42,000 Ateng, Capital (11,000) Bagio, Capital 99,000 Cecep, Capital 44,000 Liability 25,000 199,000 Total 50,000 30,000 20,000 99,000 Cash is used for payment of obligations and the remainder distributed to allies on each end of the month except $3,000 just in case. . If there are allies who have a capital deficit assumed t is capable of paying Non-cash realization as follows: a. June: equipment whose acquisition price is $ 22,000 and book value is $ 16,000 is sold with price $ 12,000. Inventory whose acquisition price is $ 50,000 is sold for $ 35,000 c. September: remaining inventory sold for $ 30,000; paid load liquidation $5,000 199,000 b.…
On December 1, 2021 – Apple, Banana, and Lemon decided to finally liquidate their partnership. (Statement of financial position/Balance sheet is given in the picture) Required: 1. Prepare the liquidation journal entries. 2. Prepare the statement of liquidation.
The partnership of Mark, Kathy, and Case has been dissolved and is in the process of liquidation. On July 1, 2017, just before the second cash distribution, the assets and equities of the partnership along with residual profit sharing ratios were as follows: Liabilities & Equities $ 200,000 Assets Cash Liabilities Mark, Capital 50% Kathy, Capital 30% Equipment-net 100,000 Case Capital 20% Total assets $ 500,000 Total Lia & Equity 500,000 Assume that Mark takes equipment with a fair value of $40,000 and a book value of $50,000 in partial satisfaction of his equity in the partnership. If all the $200,000 cash is then distributed, the partners should receive: Receivables-net 50,000 Inventories 150,000 $ 150,000 a. Mark, 25,000; Kathy, 15,000; Case 10,000 b. Mark- 0; Kathy, 50,000; Case, - 0 C. Mark, $100,000; Kathy, $60,000; Case, $40,000 d. Mark, - 0; Kathy, 45,000; Case, 5,000 100,000 175,000 75,000
On January 1, 2020, ACJ Partnership entered into liquidation. The partners capital balances on this date were as follows: A (25%) P2,500,000 ; C (35%) P5,400,000 ; J (40%) P3,700,000. The partnership has liabilities amounting to P4,400,000, including a loan from C P600,000. Cash on hand before the start of liquidation is P800,000. With the information given, answer the following independent situations: Noncash assets amounting to P7,400,000 were sold at book value and the rest of the noncash assets were sold at a loss of P4,200,000. How much cash will be distributed to the partners?A. 8,000,000B. 4,400,000C. 7,400,000D. 11,800,000 After exhausting the noncash assets of the partnership, assuming all partners has personal assets more than their personal liabilities. How much cash must be invested by the partners to satisfy the claims of the outside creditors and to pay the amount due to the partner/s? A.3,680,000B. 4,480,000C. 4,360,000D. 3,800,000 If C received P2,255,000, How much was…
On December 31, 2019, the balance sheet for the XYZ Partnership follows: The percentages shown are for the residual profit and loss sharing ratios. The partners dissolved the partnership on January 1, 2020 and began the liquidation process. During January the following events occurred: Receivables of P7,500 were collected. All inventory was sold for P10,000. All available cash was distributed on January 31, 2020, except for P5,000 that was set aside for contingent expenses. How much cash would Xander receive from the cash that is available for distribution on January 31?