The Statement of Financial Position of Sidemen Co. before liquidation is as follows: Cash 20,000 Accounts Payable Payable to B 60,000 10,000 120,000 290,000 500,000 Accounts Receivable Receivable from A Inventory Equipment Total Assets A, Capital (10%) B, Capital (40%) C. Capital (50%) Total Liab & Equity The partnership will be liquidated on an installment basis. First Month of Liquidation 1) 75% of AR was collected. 2) P40,000 was received for the entire inventory. 3) Equipment with Carrying Amount of P200,000 was sold for P210,000 30,000 20,000 100,000 150,000 200,000 500,000 4) P12,000 Liquidation Expense were paid. 5) P5,000 cash was retained for potential unrecorded liabilities and anticipated expense Compute for the Cash Distribution to the Partners using Safe Payment Method.

The Statement of Financial Position of Sidemen Co. before liquidation is as follows: Cash 20,000 Accounts Payable Payable to B 60,000 10,000 120,000 290,000 500,000 Accounts Receivable Receivable from A Inventory Equipment Total Assets A, Capital (10%) B, Capital (40%) C. Capital (50%) Total Liab & Equity The partnership will be liquidated on an installment basis. First Month of Liquidation 1) 75% of AR was collected. 2) P40,000 was received for the entire inventory. 3) Equipment with Carrying Amount of P200,000 was sold for P210,000 30,000 20,000 100,000 150,000 200,000 500,000 4) P12,000 Liquidation Expense were paid. 5) P5,000 cash was retained for potential unrecorded liabilities and anticipated expense Compute for the Cash Distribution to the Partners using Safe Payment Method.

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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