contribute any personal assets to cover it.Problem #13Dreparation of Journal Entries for Partnership LiquidationTugade, Masinsin and Biore are all famous athletes who have been operating a sportsmemorabilia store for many years. The partnership decided to liquidate its operationrather than sell the business because they are each about to retire and want to go theirseparate ways. They have been sharing profits in the ratio of 40% to Tugade, 40% toMasinsin, and 20% to Biore. The trial balance for their business on Jan. 1, 2019 follows:Trial BalanceJanuary 1, 2019CashP 42,000Accounts Receivable189,600Allowance for Uncollectible AccountsP.11,100Merchandise Inventory293,1009,000120,00031,500Prepaid InsuranceLandOffice EquipmentAccu. Depreciation-Office EquipmentMachineryAccu. Depreciation-MachineryBuildingAccu. Depreciation-BuildingNotes PayableAccounts Payable10,50081,60032,100375,000112,500120,000220,500240,000Mortgage PayableTugade, CapitalMasinsin, CapitalBiore, Capital135,00060,000200,100P1,141,800P1,141,800TotalsIn January 2019, the events took place during the process of liquidating the partnership:Jan. 6Accounts receivable of P151,500 are collected, and the allowance for uncollectibleaccounts is written off the books.Merchandise inventory is sold for P160,500.A refund on the prepaid insurance is expected totaling P3,000.Property and equipment were sold lump sum to Sibug Company for P111,000. Themortgage on the building was also transferred to Sibug.The remaining creditors were paid in full.The deficit in Masinsin's capital account was absorbed by Tugade and Biore.The deficit in Tugade's capital account was absorbed by Biore.The remaining partnership cash is distributed to Biore.111420202024Required: Prepare the journal entries to record the transactions. Allocate any gain orloss on realization to the partners' capital accounts at the time of the transaction. It isto assumed that any partner with a capital deficiency is insolvent and will not be able to

Problem 13 : Profit sharing ratio of Tugade, Masinsin and Biore = 40%, 40% and 20% respectively.…

Problem #13 Preparation of Journal Entries for Partnership Liquidation Tugade, Masinsin and Biore are all famous athletes who have been operating a sports memorabilia store for many years. The partnership decided to liquidate its operation rather than sell the business because they are each about to retire and want to go their separate ways. They have been sharing profits in the ratio of 40% to Tugade, 40% to Masinsin, and 20% to Biore. The trial balance for their business on Jan. 1, 2019 follows: Trial Balance January 1, 2019 Cash P 42,000 189,600 Accounts Receivable Allowance for Uncollectible Accounts Merchandise Inventory Prepaid Insurance P 11,100 293,100 9,000 Land 120,000 Office Equipment Accu. Depreciation-Office Equipment Machinery Accu. Depreciation-Machinery Building Accu. Depreciation-Building Notes Payable Accounts Payable Mortgage Payable Tugade, Capital Masinsin, Capital Biore, Capital 31,500 10,500 81,600 32,100 375,000 112,500 120,000 220,500 240,000 135,000 60,000 200,100 P1,141,800 P1,141,800 Totals In January 2019, the events took place during the process of liquidating the partnership: Jan. 6 Accounts receivable of P151,500 are collected, and the allowance for uncollectible accounts is written off the books. Merchandise inventory is sold for P160,500. A refund on the prepaid insurance is expected totaling P3,000. Property and equipment were sold lump sum to Sibug Company for P111,000, The mortgage on the building was also transferred to Sibug. The remaining creditors were paid in full. The deficit in Masinsin's capital account was absorbed by Tugade and Biore. The deficit in Tugade's capital account was absorbed by Biore. The remaining partnership cash is distributed to Biore. 11 14 20 20 20 24 Required: Prepare the journal entries to record the transactions. Allocate any gain or oss on realization to the partners' capital accounts at the time of the transaction. It is to assumed that any partner with a capital deficiency is insolvent and will not be able to contribute any personal assets to cover it.