Problem #4 Lump-Sum Liquidation Mima Villanueva and Christine Resultay are about to liquidate their partnership. They each have P200,000 capital balances, and they share profits and losses in a 3:1 ratio respectively. In addition, the partnership has P250,000 in cash, P450,000 in noncash assets, and P300,000 in accounts payable. Assuming that the noncash assets are sold for P170,000 and that both partners are personally solvent, prepare all the iiquidation entries.
Problem #4 Lump-Sum Liquidation Mima Villanueva and Christine Resultay are about to liquidate their partnership. They each have P200,000 capital balances, and they share profits and losses in a 3:1 ratio respectively. In addition, the partnership has P250,000 in cash, P450,000 in noncash assets, and P300,000 in accounts payable. Assuming that the noncash assets are sold for P170,000 and that both partners are personally solvent, prepare all the iiquidation entries.
Chapter11: Investor Losses
Section: Chapter Questions
Problem 35P
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Transcribed Image Text:Problem #4
Lump-Sum Liquidation
Mima Villanueva and Christine Resultay are about to liquidate their partnership. They
each have P200,000 capital balances, and they share profits and losses in a 3:1 ratio
respectively. In addition, the partnership has P250,000 in cash, P450,000 in noncash
assets, and P300,000 in accounts payable. Assuming that the noncash assets are sold for
P170,000 and that both partners are personally solvent, prepare all the iiquidation
entries.
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