Required: 49.c00 1. Prepare the cash priority program. 2. Prepare the journal entries to record the realization of assets and distribution of cash to creditors and partners.
Required: 49.c00 1. Prepare the cash priority program. 2. Prepare the journal entries to record the realization of assets and distribution of cash to creditors and partners.
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter19: Accounting For Partnerships
Section: Chapter Questions
Problem 9SPB
Related questions
Question
Transcribed Image Text:problem #20/
and P64,000 was paid to creditors and partners, P1,000 being retained to cover possible
23, 2019. On that date, the statement of financial position of the partnership is as
Espeleta and De Guia decided to dissolve and liquidate Espeleta and De Guia on Sept.
Installment Liquidation
On Sept. 23, 2019, non-cash assets with a carrying amount of P70,000 realized P60,000,
SECTION:
SCORE:
PROFESSOR:
23, 2019.
follows:
Espeleta and De Guia
Statement of Financial Position
Sept. 23, 2019
Assets
Liabilities and Partners' Capital
Accounts Payable-Trade
Loan Payable-De Guia
Espeleta, Capital
De Guia, Capital
Cash
P 5,000
P 15,000
10,000
60,000
20,000
Other Assets
100,000
Total
P105,000
Total
P105,000
On Sept. 23, 2019, non-cash assets with a carrving amount of P70,000 realized P60,000,
and P64,000 was paid to creditors and partners, P1.000 being retained to cover possIble
liquidation costs. On Oct. 1, 2019, the remaining non-cash assets realized P18,000 (net
of liquidation costs), and all available cash was distributed to partners. Espeleta and De
Guia share profits and losses 40% and 60%, respectively.
64.00
149.000
Required:
1. Prepare the cash priority program.
2. Prepare the journal entries to record the realization of assets and distribution of
cash to creditors and partners.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning