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Required; Prepare a statement of partnership liquidation and the entries to record the following: 1. Sale of all non-cash assets. 2. Distribution of loss on realization to the partners. 3. Payment of the liabilities. 4. Distribution of cash to the partners.

Required; Prepare a statement of partnership liquidation and the entries to record the following: 1. Sale of all non-cash assets. 2. Distribution of loss on realization to the partners. 3. Payment of the liabilities. 4. Distribution of cash to the partners.

FINANCIAL ACCOUNTING
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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Problem #2 Lump-Sum Liquidation with Loss on Realization After several years of operations, the partnership of Miranda, Leon and Estoque is to be liquidated. After making the closing entries on March 31, 2019 the following accounts remained open: Account Balance Credit Account Title Debit P 150,000 2,600,000 Cash Other Assets P 750,000 400,000 600,000 Liabilities Miranda, Capital Leon, Capital Estoque, Capital 1,000,000 The non-cash assets are sold for P2,150,000. Profits and losses are shared equally. Required; Prepare a statement of partnership liquidation and the entries to record the following: 1. Sale of all non-cash assets. 2. Distribution of loss on realization to the partners. 3. Payment of the liabilities. 4. Distribution of cash to the partners.
Transcribed Image Text:Problem #2 Lump-Sum Liquidation with Loss on Realization After several years of operations, the partnership of Miranda, Leon and Estoque is to be liquidated. After making the closing entries on March 31, 2019 the following accounts remained open: Account Balance Credit Account Title Debit P 150,000 2,600,000 Cash Other Assets P 750,000 400,000 600,000 Liabilities Miranda, Capital Leon, Capital Estoque, Capital 1,000,000 The non-cash assets are sold for P2,150,000. Profits and losses are shared equally. Required; Prepare a statement of partnership liquidation and the entries to record the following: 1. Sale of all non-cash assets. 2. Distribution of loss on realization to the partners. 3. Payment of the liabilities. 4. Distribution of cash to the partners.
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