On January 1, the partners of Mori, Lux, and Khan (who share profits and losses inthe ratio of 5:3:2, respectively) decide to terminate operations and liquidate theirpartnership. The trial balance at this date follows:General JournalCashAccounts receivableInventoryMachinery and equipment, netMori, loanAccounts payableLux, loanMori, capitalLux, capitalKhan, capitalTotalsDebit$ 32,00094,00080.0001239,000Credit58.000$ 89,00048,000152,000104,00088,000$ 481,000$ 481,000The partners plan a program of piecemeal conversion of the partnership's assets tominimize liquidation losses. All available cash, less an amount retained to provide forfuture expenses, is to be distributed to the partners at the end of each month. Asummary of the liquidation transactions follows:JanuaryFebruaryMarchCollected $65,000 of the accounts receivable; the balance is deemeduncollectible.Received $52,000 for the entire inventory.Paid $8,000 in liquidation expenses.Paid $72,000 to the outside creditors after offsetting a $9,000 creditmemorandum received by the partnership on January 11.Retained $24,000 cash in the business at the end of January to coverliquidation expenses. The remainder is distributed to the partners.Paid $9,000 in liquidation expenses.Retained $12,000 cash in the business at the end of the month to coveradditional liquidation expenses.Received $160,000 on the sale of all machinery and equipment.Paid $11,000 in final liquidation expenses.Retained no cash in the business.Required:Prepare proposed schedules of liquidation on January 31, February 28, and March 31to determine the safe payments made to the partners at the end of each of thesethree months.Complete this question by entering your answers in the tabs below.JanuaryFebruaryMarchPrepare proposed schedule of liquidation to determine the safe payments made to the partners atthe end of March.Note: Amounts to be deducted should be entered with a minus sign.Balances before February 28 safe paymentsSafe payments to partners - February 28MORI, LUX, AND KHAN PARTNERSHIPProposed Schedule of LiquidationMarch 31CashNoncashAssetsMori,Liabilities Capital andLoan 50%Lux, Capitaland Loan 30%Khan, Capital20%Balances - March 1000Sold machineryPaid liquidation expensesSubtotal (actual balances)0000Safe payments to partners - March 31Ending balances - March 31$0 $0$0$0 $$0Show less A

Partnership:The partnership refers to the arrangement when more than two individuals come together…

Required: Prepare proposed schedules of liquidation on January 31, February 28, and March 31 to determine the safe payments made to the partners at the end of each of these three months. Complete this question by entering your answers in the tabs below. January February March

Required: Prepare proposed schedules of liquidation on January 31, February 28, and March 31 to determine the safe payments made to the partners at the end of each of these three months. Complete this question by entering your answers in the tabs below. January February March

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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On January 1, the partners of Mori, Lux, and Khan (who share profits and losses in the ratio of 5:32, respectively) decide to terminate operations and liquidate their partnership. The trial balance at this date follows: General Journal Cash Accounts receivable Inventory Debit $24,000 78.000 64,000 227,000 42,000 Credit Machinery and equipment, net Mori, loan Accounts payable Lux, loan Mori, capital Lux, capital Khan, capital Totals $409,000 $77,000 32,000 124,000) 96,000 80,000 $409.000 The partners plan a program of piecemeal conversion of the partnership's assets to minimize liquidation losses. All available cash, less an amount retained to provide for future expenses, is to be distributed to the partners at the end of each month. A summary of the liquidation transactions follows: January February March Required: Collected $57,000 of the accounts receivable; the balance is deemed uncollectible Received $44,000 for the entire inventory Paid $8,000 in liquidation expenses. Paid $66,000…
Z admits A as a partner in business. Accounts in the ledger for Z on November 20, 2018, just before the admission of A, show the following balances: Cash Accounts Receivable Merchandise Inventory Prepaid expense Accounts Payable Z, Capital P 6,800 14,200 20,000 1,000 9,000 33,000 It is agreed that the purposes of establishing Z's interest the following adjustments shall be made: a) An allowance for doubtful accounts of 3% of accounts receivable is to be established b) The merchandise inventory is to be valued at P23,000. c) Prepaid salary expenses of P600 and accrued rent expense of P800 are to be recognized. A is to invest sufficient cash to obtain a 1/3 interest in the partnership. (1) Z's adjusted capital before the admission of A; and (2) the amount cash investment by A:
On January 1, the partners of Van, Bakel, and Cox (who share profits and losses in the ratio of 5:3:2, respectively) decide to terminate operations and liquidate their partnership. The trial balance at this date follows: Cash Accounts receivable Inventory Machinery and equipment, net Van, loan Accounts payable Bakel, loan Van, capital Bakel, capital Cox, capital Totals February $ March Debit 36,000 102,000 88,000 225,000 66,000 $ Credit 95,000 56,000 The partners plan a program of piecemeal conversion of the partnership's assets to minimize liquidation losses. All available cash, less an amount retained to provide for future expenses, is to be distributed to the partners at the end of each month. A summary of the liquidation transactions follows: January 166,000 108,000 92,000 $ 517,000 $ 517,000 Collected $69,000 of the accounts receivable; the balance is deemed uncollectible. Received $56,000 for the entire inventory. Paid $4,000 in liquidation expenses. Paid $90,000 to the outside…
On January 1, the partners of Van, Bakel, and Cox (who share profits and losses in the ratio of 5:3:2, respectively) decide to terminate operations and liquidate their partnership. The trial balance at this date follows: Cash Accounts receivable Inventory Machinery and equipment, net Van, loan Accounts payable Bakel, loan Van, capital Bakel, capital Cox, capital Totals Debit $ 32,000 94,000 Credit 80,000 217,000 58,000 $ 89,000 48,000 152,000 104,000 88,000 $ 481,000 $ 481,000 The partners plan a program of piecemeal conversion of the partnership's assets to minimize liquidation losses. All available cash, less an amount retained to provide for future expenses, is to be distributed to the partners at the end of each month. A summary of the liquidation transactions follows: January February March Collected $65,000 of the accounts receivable; the balance is deemed uncollectible. Received $52,000 for the entire inventory. Paid $8,000 in liquidation expenses. Paid $80,000 to the outside…
On January 1, the partners of Van, Bakel, and Cox (who share profits and losses in the ratio of 5:3:2, respectively) decide to terminate operations and liquidate their partnership. The trial balance at this date follows: Cash Accounts receivable Inventory Machinery and equipment, net Van, loan Accounts payable Bakel, loan Van, capital Bakel, capital Cox, capital Totals Debit $ 32,000 94,000 Credit 80,000 217,000 58,000 $ 89,000 48,000 152,000 104,000 88,000 $ 481,000 $ 481,000 The partners plan a program of piecemeal conversion of the partnership's assets to minimize liquidation losses. All available cash, less an amount retained to provide for future expenses, is to be distributed to the partners at the end of each month. A summary of the liquidation transactions follows: January February March Collected $65,000 of the accounts receivable; the balance is deemed uncollectible. Received $52,000 for the entire inventory. Paid $8,000 in liquidation expenses. Paid $80,000 to the outside…
recognized in Castillo's books. The individual trial balances on Augus 3 On August 1, Castillo and Dagarag pooled their assets to form a partnership, with the firm to take over their business assets and assume the liabilities. Partners' capitals are to be based on net assets transferred after the following adjustments. (Profits and losses are allocated equally). Dagarag's inventory is to be increased by P14,600; an allowance for doubtful accounts of P3,650 and P5,475 are to be set up in books of Castillo and Dagarag, respectively; and accounts payable of P14,600 is to be before adjustments, follow: Castillo Dagarag 273,750 412,450 18,250 125,925 Assets Liabilities What is the capital of Castillo and Dagarag after the above adjustments? a. Castillo, P250,937.50; Dagarag, P281,962.50 b. Castillo, P273,750; Dagar ag, P295,650 C. Castillo, P237,250; Dagarag, P277,400 d. Castillo, P237,250; Dagarag, P295,650
A. After several years of operations, the partnership of Arenas, Dulay and Laurente is to be liquidated. After making the closing entries on June 30, 2018, the following accounts remained open: Account Title Debit Credit Cash P 50,000 Non-cash Assets 2,350,000 Liabilities 400,000 Arenas, Capital 900,000 Dulay, Capital 500,000 Laurente, Capital 600,000 The non-cash assets are sold for P2,650,000. Profits and losses are shared equally. Prepare a Statement of Partnership Liquidation and the entries to record the following: 1. Sale of all non-cash assets 2. Distribution of gain on realization to the partners 3. Payment of the liabilitites 4. Distribution of cash to the partners
After several years of operations, the partnership of Arenas, Dulay and Laurente is to be liquidated. After making the closing entries on June 30, 2018, the following accounts remained open: Account Title Debit Credit Cash P 50,000 Non-cash Assets 2,350,000 Liabilities P 400,000 Arenas, Capital 900,000 Dulay, Capital 500,000 Laurente, Capital 600,000 The non-cash assets are sold for P2,650,000. Profits and losses are shared equally. Prepare a Statement of Partnership Liquidation and the entries to record the following: 1. Distribution of cash to the partners
Leni admits BBM as a partner in the business. Balance Sheet accounts of Leni on September 30, just before admission show: Cash - 31,200 Accounts Receivable - 144,000 Inventory - 216,000 Accounts Payable - 74,400 Leni, Capital - 316,800 It is agreed that for purposes of establishing Leni's interest, the following adjustments shall be made: a. An allowance for doubtful accounts of 2% is to be established. b. Inventory is to be valued at 242,400 c. Prepaid Expenses of 4,200 and accrued expenses of 4,800 are to be recognized. BBM is to invest sufficient cash to obtain 1/3 interest in the partnership. How much is BBM investment in the partnership?
A, B, C and D are partners sharing profit and losses in the rate of 4:3 :3:2. Their respective capitals on 31st March, 2021 were $3,000, $4,500, $6,000 and $4,500. After closing and finalizing the accounts it was found that interest on capital @ 6% per annum was omitted. Instead of altering the signed accounts it was decided to pass a single adjusting entry on 1st April, 2021 crediting or debiting the respective partners' accounts. Show the Journal Entry.
P, Q and R are partners sharing profit and losses in the ratio of 5 : 3: 2. Q retires and the goodwill of the firm is valued at $ 9,000. Assuming that P and R will share the future profits in the ratio of 4 : 1. Pass the necessary journal entries in each of the following alternative cases: (a) When no goodwill account appears in the books. (b) When goodwill account appears at $ 30,000 in the Balance Sheet.
Victory Worship Partnership has the following account balances before liquidation (see attached photo):During December, some non-cash assets were sold for a loss of P1,845. Liquidation expenses of P7,000 were paid and additional expenses amounting to P3,600 were expected to be incurred through the following months of liquidating the partnership. Liabilities to outsiders amounting to P35,000 were paid. What is the book value of non-cash assets sold for Co to receive P22,222?