EXERCISE 8-4. Journal Entries 1: Gain on realization of non-cash assets. The following statement of financial position was prepared on the day the laundry business of Fe, Editha, andMarivic commenced winding up its affairs and operations: FEM Super LaundryFEM Super LaundryStatement of Financial PositionFebruary 28, 2019CashP150,000LiabilitiesP 76,000Non-cash Assets350,000Editha, Loan5,000Marivic, Loan12,000Fe, Capital105,000Editha, Capital115,000Marivic, Capital187,000Total Liabilities &Total AssetsP500,000P500,000Partners' EquityPrepare the journal entries to record liquidation of the partnership under each of the following independent situations:1. The non-cash assets were sold for P401,000. They agreed that profits and losses would be shared equally.2. The non-cash assets were sold for P401,000. Fe, Editha, and Marivic agreed that profits and losses would be shared in the ratio of 1:3:4, respectively.

Liquidation is a process in which the company or the partnership business closes or shuts down the…

Prepare the journal entries to record liquidation of the partnership under each of the following independent situations: 1. The non-cash assets were sold for P401,000. They agreed that profits and losses would be shared equally. 2. The non-cash assets were sold for P401,000. Fe, Editha, and Marivic agreed that profits and losses would be shared in the ratio of 1:3:4, respectively.

Prepare the journal entries to record liquidation of the partnership under each of the following independent situations: 1. The non-cash assets were sold for P401,000. They agreed that profits and losses would be shared equally. 2. The non-cash assets were sold for P401,000. Fe, Editha, and Marivic agreed that profits and losses would be shared in the ratio of 1:3:4, respectively.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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