The after-closing trial balances of the Brenda, Peter, and Timothy partnership at December 31, 2020 included the following accounts and balances: Cash – P120,000; Accounts receivable, net – P140,000; Loan to Timothy – P20,000; Inventory – P200,000; Plant assets, net – P200,000; Trademarks – P20,000; Accounts Payable – P150,000; Notes Payable – P100,000; Loan from Peter – P10,000; Brenda, Capital (50%) – P170,000; Peter, Capital (30%) – P170,000; Timothy, Capital (20%) – P100,000. The partnership is to be liquidated as soon as possible, and all available cash except for a P10,000 contingency balance is to be distributed at the end of each month prior to the time that all assets are converted into cash. During January 2021, P100,000 was collected from accounts receivable, inventory items with a book value of P80,000 were sold for P100,000, and available cash was distributed. During February 2021, Brenda received plant assets with a book value of P60,000 and a fair value of P50,000 in partial settlement of her equity in the partnership. Also, during February, the remaining inventory items were sold for P60,000, liquidation expenses of P2,000 were paid, and a liability of P8,000 was discovered. Cash was distributed on February 28. During March 2021, plant assets were sold for P110,000. The remaining noncash assets were written off, final liquidation expenses of P5,000 were paid, and cash was distributed. The dissolution of the partnership was completed on March 31, 2021. The amount of cash to be received by Timothy for the month of March: a. P0 b. P23,000 c. P29,000 d. P60,000
20. The after-closing
included the following accounts and balances: Cash – P120,000;
Loan
to Timothy – P20,000; Inventory – P200,000; Plant assets, net – P200,000; Trademarks – P20,000;
Accounts Payable – P150,000; Notes Payable – P100,000; Loan from Peter – P10,000; Brenda, Capital
(50%) – P170,000; Peter, Capital (30%) – P170,000; Timothy, Capital (20%) – P100,000. The partnership
is to be liquidated as soon as possible, and all available cash except for a P10,000 contingency balance is
to be distributed at the end of each month prior to the time that all assets are converted into cash.
During
January 2021, P100,000 was collected from accounts receivable, inventory items with a book value of
P80,000 were sold for P100,000, and available cash was distributed. During February 2021, Brenda
received plant assets with a book value of P60,000 and a fair value of P50,000 in partial settlement of
her
equity in the partnership. Also, during February, the remaining inventory items were sold for P60,000,
liquidation expenses of P2,000 were paid, and a liability of P8,000 was discovered. Cash was distributed
on February 28. During March 2021, plant assets were sold for P110,000. The remaining noncash assets
were written off, final liquidation expenses of P5,000 were paid, and cash was distributed. The
dissolution
of the partnership was completed on March 31, 2021. The amount of cash to be received by Timothy for
the month of March:
a. P0
b. P23,000
c. P29,000
d. P60,000
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