Problem #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, 2019 the following accountsremained open:Account BalanceCreditAccount TitleDebitP 150,0002,600,000CashOther AssetsP 750,000400,000600,000LiabilitiesMiranda, CapitalLeon, CapitalEstoque, Capital1,000,000The 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.

Partnership refers to an agreement between 1 or more people to operate a business together and share…

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.

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.

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 10SPB: STATEMENT OF PARTNER SHIP LIQUIDATION WITH LOSS After several years of operations, the partnership...

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STATEMENT OF PARTNER SHIP LIQUIDATION WITH LOSS After several years of operations, the partnership of Delco, Smith, and Walker is to be liquidated. After making closing entries on March 31, 20--, the following accounts remain Open. The noncash assets are sold for 165,000. Profits and losses are shared equally. REQUIRED 1. Prepare a statement of partnership liquidation for the period April 115, 20--, showing the following: (a) The sale of noncash assets on April 1 (b) The allocation of any gain or loss to the partners on April 1 (c) The payment of the liabilities on April 12 (d) The distribution of cash to the partners on April 15 2. Journalize these four transactions in a general journal.
Problem #2 Lump-Sum Liquidation with Loss on Realization After several years of operations, the partnership of Concepcion, Macabata and Pedroso is to be liquidated. After making closing entries on March 31, 2011 the following accounts remained open: Account Balance Account Title Debit Credit Cash P 150,000 Non-cash Assets 2,600,000 Liabilities P 750,000 Concepcion, Capital 400,000 Macabata, Capital 600,000 Pedroso, Capital 1,000,000 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.
Problem #1 Lump-Sum liquidation with Gain on Realization After several years of operations, the partnership of Arenas, Dulay and Laurente is to be liquidated. After making the closing entries on June 30, 2011, the following accounts remained open: Account Balance Account Title Debit Credit Cash P 50,000 Non-cash Assets 2,350,000 Liabilities P 400,000 Arenas, Capital 900,000 Dulay, Capital 500,000 Laurente, Capital 600,000 The non-cash assets are sold for P2,650,000. Profits and losses are shared equally. Required: Prepare a statement of partnership liquidation and entries to record the following: 1. Sale of all non-cash assets. 2. Distribution of gain on realization to the partners. 3. Payment of the liabilities. 4. Distribution of cash to the partners.
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The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: Cash $ 37,000 Liabilities $ 49,000 Noncash assets 209,000 Drysdale, loan 12,500 Drysdale, capital (50%) 71,500 Koufax, capital (30%) 61,500 Marichal, capital (20%) 51,500 a-1. Determine the maximum loss that can be absorbed in Step 1. Then, assuming that this loss has been incurred, determine the next maximum loss that can be absorbed in Step 2. a-2. Liquidation expenses are estimated to be $16,000. Prepare a predistribution schedule to guide the distribution of cash. Further, modify the tags in explanation as well. b. Assume that assets costing $75,000 are sold for $60,500. How is the available cash to be divided?
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On January 1, 2018, ACJ Partnership entered into liquidation. The partners' profit and loss ratios and capital balances on this date were as follows: A (25%) P2,500,000 C (35%) P5,400,000 J (40%) P3,700,000 The partnership has liabilities amounting to P4,400,000, including a loan from C in the amount of P600,000. Cash on hand before the start of liquidation is P800,000. Non-cash assets amounting to P7,400,000 were sold at book value and the remainder of non-cash assets were sold at a loss of P4,200,000. How much cash will be distributed to the partners?
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Partners Arias, Bobadilla and Briones share profits and losses 50:30:20, respectively. The statement of financial position at April 30, 2019 follows: Cash P 40,000 Accounts Payable P100,000 Other Assets 360,000 Arias, Capital 74,000 Bobadilla, Capital 130,000 Briones, Capital 96,000 Total 400,000 Total P400,000 The assets and liabilities are recorded and presented at their respective fair values. Banzon is to be admitted as a new partner with a 20% capital interest and a 20% share of profits and losses in exchange for a cash contribution. No goodwill or bonus is to be…
A. The Abrams, Bartle, and Creighton partnership began the process of liquidation with thefollowing balance sheet: Cash $16,00 Non cash Assets $434,000 Liabilities $150,000 Abrams Capital $80,000 Bartle Capital $90,000 Creighton Capital $130,000 Abrams, Bartle, and Creighton share profits and losses in a ratio of 3:2:5. Liquidation expenses are expected to be $12,000.1. If the non-cash assets were sold for $234,000, what amount of the loss would have been allocated to Bartle?2. If the non-cash assets were sold for $134,000, which partner(s) would have had to contribute assets to the partnership to cover a deficit in his/her capital account?3. After the liquidation expenses of $12,000 were paid and the non-cash assets sold, Creighton had a deficit of $8,000. For what amount were the non-cash assets sold?