B. April, May and June are partners. The following balances are obtained prior to liquidation. April (50%) P 400,000 ( 50,000) May (20%) P 300,000 June (30%) P 250,000 Capital Balances Loan (Receivables) Payables 80,000 30,000 Assets are sold and cash is distributed to the partners in monthly installments. During the course of liquidation, cash made available to the partners are as follows: April May P 200,000 350,000 June 250,000 What amount of cash was paid to May in the first month of liquidation? 4. How much did April receive in the last month of liquidation? 3.

B. April, May and June are partners. The following balances are obtained prior to liquidation. April (50%) P 400,000 ( 50,000) May (20%) P 300,000 June (30%) P 250,000 Capital Balances Loan (Receivables) Payables 80,000 30,000 Assets are sold and cash is distributed to the partners in monthly installments. During the course of liquidation, cash made available to the partners are as follows: April May P 200,000 350,000 June 250,000 What amount of cash was paid to May in the first month of liquidation? 4. How much did April receive in the last month of liquidation? 3.

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

Exercise 3-7. Distribution of Net Loss to partners Carmela and Ferdinand formed a partnership on January respectively. The partnership reported a net loss of P80,000. 1, 2023, with initial investments of P300,000 and P500,000, The partnership agreement provides that profit or loss shall be distributed accordingly: • Monthly salary of P10,000 and P5,000 respectively for Carmela and Ferdinand, . 10% interest on partners' original capital. . 20% bonus to Carmela based on net income before interest, and salary. •The remainder is shared in the ratio of 3:2 respectively. Required: Determine the share of Carmela and Ferdinand in the net loss.
On December 31, the capital balances and income ratios in Sunland Company are as follows. Partner Capital Balance Income Ratio Trayer $ 64,500 50% Emig 35,000 30% Posada 34,500 20% (1) Each of the continuing partners agrees to pay $ 19,600 in cash from personal funds to purchase Posada’s ownership equity. Each receives 50% of Posada’s equity. (2) Emig agrees to purchase Posada’s ownership interest for $ 24,200 cash. (3) Posada is paid $ 37,700 from partnership assets, which includes a bonus to the retiring partner. (4) Posada is paid $ 25,780 from partnership assets, and bonuses to the remaining partners are recognized. Journalize the withdrawal of Posada under each of the following assumptions. If Emig’s capital balance after Posada’s withdrawal is $ 38,930, what were (1) the total bonus to the remaining partners and (2) the cash paid by the partnership to Posada?
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? A. 83,355 B. 85,200 C. 95,000 D. 93,155
The statement of Financial Position of JJJ Partnership, just before liquidation is as follows: ASSETS Cash 50,000 Other Assets 140,000 Loan — July 10,000 Total Assets 200,000 LIABILITIES & CAPITAL Liabilites 70,000 Loan- January 20,000 January,Capital (50%) 30,000 June,Capital (30%) 50,000 July,Capital (20%) 30,000 Total Liabilities & Capital 200,000 Partners January and June are personally insolvent. The percentages in parenthesis are their profit and loss ratio. Situation 1:If non cash assets are sold for P150,000 and all liabilities are paid and liquidation expense of P5,000 are also paid: How much cash should…
Numbers 11-12 (Based on Book Values with Adjustments) On July 1, AA and BB decided to form a partnership. Balance sheet items for AA and BB on July 1 before adjustment are given below: Cash Accounts receivable Inventory Office supplies Equipment Accumulated depreciation Total assets Accounts payable Capital Total liabilities and capital 6,667 withdraw 3,000 invest 8,333 invest AA P 31,000 26,000 32,000 20,000 (9,000) P 100,000 B. AA-81,250 BB-75,000 P 28,000 72,000 P 100.000 C. AA-100,000 BB-75,000 BB P 50,000 20,000 AA and BB agreed to the following adjustments: (a) AA and BB's inventory is to be valued at P31,000 and P22,000, respectively; (b) Accounts receivable of P2,000 in AA's book and P1,000 in BB's books are uncollectible; D. AA 62,000 BB-93,000 24,000 5,000 (c) Accrued salaries of P4,000 for AA and P5,000 for BB are still to be recognized in the books; (d) Unused office supplies of AA amounted to P5,000 while that of BB amounted to P1,500; (e) Prepaid rent of P7,000 and P4,500…
On September 23, 2021 – Pepsi and Coke have both decided to dissolve and liquidate their partnership. The balance sheet/statement of financial position on that date is as follows in the given picture. Required: 1. Prepare the cash priority program. 2. Prepare the liquidation journal entries and the statement of liquidation.
After operating for seven years, the books of the partnership of Kobe and Gasol showed the following balances: Net assets - P 169.000; Kobe, Capital - P 110,500: Gasol, Capital - P 58,500. If liquidation takes place at this point, and the net assets are at book value, how much would Kobe receive?
On September 15, 2021, LCM Partnership entered into liquidation. The partners' profit and loss ratios and capital balances on this date were as follows: L 25% 2,500,000.00 C 35% 5,400,000.00 M 40% 3,700,000.00 Total 11,600,000.00 The partnership has liabilities amounting to P 4,400,000, including a loan from C in the amount of P600,000. Cash on hand before starting the liquidation process is P 800,000. Non-cash assets amounting to P 7,400,000 were sold at book value and the remainder of the non-cash assets were sold at a loss of P 4,200,000. How much cash will be distributed to the partners?
A1
Financial Accounting and Reporting Topic: Liquidation – Installment
After liquidating noncash assets and paying creditors, account balances in the Oriole Co. are Cash $17,800: A Capital (Cr.) $7.600; B. Capital (Cr.) $6.600; and C, Capital (Cr.) $3,600. The partners share income equally. Journalize the final distribution of cash to the partners. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit
On January 1, 20x20. ACJ Partnership entered into liquidation. The partners' capital balances on this date were as follows: A (25%) P2,500,000; C (35%) P5,400,0003; J (40%) P3.700,000. The partnership has liabilities amounting to P4,400,000, including a loan from C P600.000. Cash on hand before the start of liquidation is P800,000. Noncash assets amounting to P7,400,000 were sold at book value and the rest of the noncash assets were sold al a loss of P4.200,000. How much cash will be distributed to the partners?