2:52(81On March 30, 2016, Garcia, James, Tang partnershiphas the following fiscal year-end balance sheet:CashP6,000Accounts PayableP10,500Accounts Receivable9,000Loan from TangInventoryGarcia, Capital (40%)7,50021,00021,000Plant assets-net19,500James, Capital (20%)15,000Loan to Garcia7,500Tang, Capital (40%)9,000The percentages shown are the residual profit or losssharing ratios. The partnership dissolved thepartnership on January 1, 2016. and began theliquidation process. The partners set the policy ofsetting aside P3,000 cash for contingent expensesevery month prior to the last distribution period. Thepartnership strictly followed the liquidation processmandated by law.During January the following realization of assets andpayment of liquidation expenses occurred:a. Accounts receivable of P6,000 was collected and thebalance is deemed as bad debt.b. All inventory was sold for P15,000c. Liquidation expense of P1,500 was paid.During February the following realization of assets andpayment of liquidation expenses occurred:a. The plants assets was sold for P15,000b. Liquidation expense of P2,000 was paid.1. Using Cash Priority Program, How muchcash would James receive from the cash thatis available for distribution on January 3,2016?Your answer2. Using Cash Priority Program, How muchcash would Tang receive from the cash that isavailable for distribution on February 28, 2016?

Answered: Image /qna-images/answer/4c618c12-6fd9-4a57-ada1-859dbc50de93.jpg

On March 30, 2016, Garcia, James, Tang partnership has the following fiscal year-end balance sheet: P6,000 P10,500 9,000 Cash Accounts Payable Accounts Receivable Loan from Tang Inventory Garcia, Capital (40%) Plant assets-net 7,500 21,000 21,000 19,500 James, Capital (20%) 15,000 Loan to Garcia 7,500 Tang, Capital (40%) 9,000

On March 30, 2016, Garcia, James, Tang partnership has the following fiscal year-end balance sheet: P6,000 P10,500 9,000 Cash Accounts Payable Accounts Receivable Loan from Tang Inventory Garcia, Capital (40%) Plant assets-net 7,500 21,000 21,000 19,500 James, Capital (20%) 15,000 Loan to Garcia 7,500 Tang, Capital (40%) 9,000

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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