Problem #13Preparation 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% to.Masinsin, and 20% to Biore. The trial balance for their business on Jan. 1, 2016 follows:Trial BalančeJanuary 1, 2016CashP 42,000Accounts Receivable189,600P 11,100Allowance for Uncollectible AccountsMerchandise InventoryPrepaid Insurance293,1009,000120,000LandOffice Equipment31,500Accu. Depreciation-Office EquipmentMachineryAccu. Depreciation-MachineryBuilding10,50081,60032,100375,000Accu. Depreciation-BuildingNotes PayableAccounts Payable112,500120,000220,500Mortgage PayableTugade, CapitalMasinsin, CapitalBiore, CapitalTotals240,000135,00060,000200,100P1,141,800P1,141,800January 2016, 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.111420202024uired: Prepare the journal entries to record the transactions. Allocate any gain oron realization to the partners' capital accounts at the time of the transaction. It isssumed that any partner with a capital deficiency is insolvent and will not be able toribute any personal assets to cover it.

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

sinsin and Biore are all famous athletes who have been operatin store for many years. The partnership decided to liquidate its sell the business because they are each about to retire and want ys. They have been sharing profits in the ratio of 40% to Tuga d 20% to Biore. The trial balance for their business on Jan. 1, 201 Trial Balance January 1, 2016 P 42,000 hts Receivable 189,600 nce for Uncollectible Accounts P 11,10 andise Inventory d Insurance 293,100 9,000 120,000 Equipment Depreciation-Office Equipment mery Depreciation-Machinery 31,500 10,50 81,600 32,10 375,000 Depreciation-Building Payable 112,50 120.00

sinsin and Biore are all famous athletes who have been operatin store for many years. The partnership decided to liquidate its sell the business because they are each about to retire and want ys. They have been sharing profits in the ratio of 40% to Tuga d 20% to Biore. The trial balance for their business on Jan. 1, 201 Trial Balance January 1, 2016 P 42,000 hts Receivable 189,600 nce for Uncollectible Accounts P 11,10 andise Inventory d Insurance 293,100 9,000 120,000 Equipment Depreciation-Office Equipment mery Depreciation-Machinery 31,500 10,50 81,600 32,10 375,000 Depreciation-Building Payable 112,50 120.00

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

vj subject-Accounting
Jimmy Pesto and Calvin Fischoeder’s business goes bankrupt and needs to liquidate. Jimmy and Calvin’s income ratios are 60% and 40%, respectively. They sell their noncash assets to their competitor Bob for $105,000. The following is the partnership’s Balance Sheet: Jimmy Pesto’s Pizzeria Balance Sheet December 31, 20XX Assets Cash $20,000 Accounts Receivable 5,000 Supplies 3,000 Inventory 12,000 Equipment 80,000 Total Assets $120,000 Liabilities and Owners’ Equity Accounts Payable $55,000 J. Pesto, Capital 45,000 C. Fischoeder, Capital 20,000 Total Liabilities and Owners’ Equity $120,000 Prepare the journal entries to liquidate the business. Account Debit Credit
Don't provide answers in image format
REVISED IMAGES ATTACHED Why are highlighted items Incorrect? Which Account should be used along with the correct debit or credit amount.
None
A M3 - CHAPTER 2 MULTIPLE CHOICE.pdf - Adobe Acrobat Reader DC File Edit View Sign Window Help Home Tools МЗ - СНАРТER 3.. МЗ - СНАРТЕR 2 .. М3 - СНАРТЕR 2 ... Sign In 1 /2 PKUFESSOR: Multiple Choice Search 'Recognize Text' 1. Ceradoy, Manongsong and Anuran are partners sharing residual profits in the ratio of 3:2:1. The partnership agreement provides for 8% interest on capital and a salary for Manongsong of P80,000 per annum. Profit for 2016 was P840,000 and the year-end balances on partners' capital accounts are as follows: Ceradoy, P200,000; Manongsong, P150,000 and Anuran, P120,000. What was Anuran's share of residual profits for 2016? i Combine Files EI Organize Pages 2 Redact а. Р120,400 b. P126,670 C. P130,000 Protect d. P140,000: * Compress PDF 2. Malaluan and Baral are in partnership. They share profits in the ratio 3:2 and close their accounts on June 30 each year.On Jan. 1, 2016, Castro joined the partnership. The profit-sharing ratio was revised to become Malaluan 50%,…