I. EXERCISES A. Karen, Kim, Kristine who share profits and losses in the ratio of 4:4:2, respectively, decide to liquidate their partnership on September 30, 2020. The condensed statement of financial position is presented below just prior to liquidation. BGC Partnership Statement of Financial Position December 31, 2019 ASSETS LIABILITIES AND EQUITY Cash P 8,000 Liabilities P 44,800 Other Assets 136, 000 Kim, Loan 2,000 Kristin, Loan 3,200 Karren, Capital 38,000 Kim, Capital 24,000 Kristin, Capital 32,000 Total Assets P 144,000 Total Liabilities and Equity P 144,000 Instruction: Prepare a statement of Liquidation and the required journal entries for each of the following cases and supporting schedule of cash distribution, if necessary assuming cash is immediately distributed to the proper parties. Assume also that the deficient partner/s will invest cash which is then distributed as second payment to the proper parties. Case 1 P 140,000 Case 2 100,000 Case 3 P 74,000 Case 4 68,000 Deficient Partner is Solvent Case 5 P 68,000 Deficient Partner is insolvent

I. EXERCISES A. Karen, Kim, Kristine who share profits and losses in the ratio of 4:4:2, respectively, decide to liquidate their partnership on September 30, 2020. The condensed statement of financial position is presented below just prior to liquidation. BGC Partnership Statement of Financial Position December 31, 2019 ASSETS LIABILITIES AND EQUITY Cash P 8,000 Liabilities P 44,800 Other Assets 136, 000 Kim, Loan 2,000 Kristin, Loan 3,200 Karren, Capital 38,000 Kim, Capital 24,000 Kristin, Capital 32,000 Total Assets P 144,000 Total Liabilities and Equity P 144,000 Instruction: Prepare a statement of Liquidation and the required journal entries for each of the following cases and supporting schedule of cash distribution, if necessary assuming cash is immediately distributed to the proper parties. Assume also that the deficient partner/s will invest cash which is then distributed as second payment to the proper parties. Case 1 P 140,000 Case 2 100,000 Case 3 P 74,000 Case 4 68,000 Deficient Partner is Solvent Case 5 P 68,000 Deficient Partner is insolvent

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 1PA: The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after...

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The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after Tatum receives a 10,000 salary and Brook receives a 15,000 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $40,000 B. $25,000 C. ($5,000) In addition, show the resulting entries to each partners capital account. Tatums capital account balance is $50,000 and Brooks is $60,000.
On the December 31, 2020, the Statement of Financial Position of LOVE Partnership shows the following data with profit or loss sharing of 5:3:2.CashP10,000,000Noncash Asset40,000,000Total LiabilitiesP20,000,000Ona10,000,000Vina15,000,000Ena5,000,000On January 01, 2021, Lina is admitted to the new partnership named LOVE by investing P20,000,000 for 50% capital interest in the new partnership. What is the new capital balance of Ena after Lina’s admission in LOVE Partnership?
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