2:53fabm2 me2.jpgProblem #2Lump-Sum Liquidation with Loss on RealizationAfter several years of operations, the partnership of Miranda, Leon and Estoque is to beliquidated. After making the closing entries on March 31, 2016 the following accountsremained open:Account BalanceAccount TitleDebitCredit"CashOther AssetsP 150,0002,600,000LiabilitiesMiranda, CapitalLeon, CapitalEstoque, CapitalP 750,000400,000600,0001,000,000The non-cash assets are sold for P2,150,000. Profits and losses are shared equally.Required:Prepare a statement of partnership liquidation and the entries to record the following:1. Sale of all non-cash assets.2. Distribution of loss on realization to the partners.3. Payment of the liabilities.4. Distribution of cash to the partners.

At the time of liquidation of a partnership firm, the assets are first sold and any loss or gain on…

After several years of operations, the partnership of Miranda, Leon and Estoque is to be liquidated. After making the closing entries on March 31, 2016 the following accounts remained open: Account Balance Account Title Debit Credit P 150,000 2,600,000 "Cash Other Assets Liabilities P 750,000 Miranda, Capital Leon, Capital 400,000 600,000 1,000,000 Estoque, Capital The non-cash assets are sold for P2,150,000. Profits and losses are shared equally. Required: Prepare a statement of partnership liquidation and the entries to record the following: 1. Sale of all non-cash assets. 2. Distribution of loss on realization to the partners. 3. Payment of the liabilities. 4. Distribution of cash to the partners.

After several years of operations, the partnership of Miranda, Leon and Estoque is to be liquidated. After making the closing entries on March 31, 2016 the following accounts remained open: Account Balance Account Title Debit Credit P 150,000 2,600,000 "Cash Other Assets Liabilities P 750,000 Miranda, Capital Leon, Capital 400,000 600,000 1,000,000 Estoque, Capital The non-cash assets are sold for P2,150,000. Profits and losses are shared equally. Required: Prepare a statement of partnership liquidation and the entries to record the following: 1. Sale of all non-cash assets. 2. Distribution of loss on realization to the partners. 3. Payment of the liabilities. 4. Distribution of cash to the partners.

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter24: Bankruptcy, Reorganization, And Liquidation

Section: Chapter Questions

Problem 5SP

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