Partners A,B and C decided to liquidate their business on January 31, 2021 and showed the following financial position: ASSETS LIABILITIES & STOCKHOLDER'S EQUITY Cash28,000 Accounts Payable14,400Non-Cash Assets36,000 Loan Payable to A4,000 A, Capital8,000 B, Capital16,000 C, Capital21,600Totals64,000 Totals64,000 It was also agreed that cash distribution be made at the end of each monthprovided there was sufficient cash for this purpose. Profit and loss ratio was 2:1:2 respectively. The liquidation transactions for the months of February, March and April wereas Follows: Cash ProceedsBV of Assets SoldLiabilities paidLiquidation ExpenseRestricted Cash for future expensesFebruary8,00012,00012,0002,4001,600March12,80016,0002,4001,600800April6,4008,000 800 Note: The statement of liquidation is supported by schedule of safe payments.Required: Prepare a liquidation Table and schedule of safe payments I need help from this please :(

Liquidation table with the safe schedule payments statement is the statement which is prepared by…

Answered: The statement of liquidation is…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter16: Statement Of Cash Flows

Section: Chapter Questions

Problem 1EB: Provide journal entries to record each of the following transactions. For each, identify whether the...

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Partners A,B and C decided to liquidate their business on January 31, 2021 and showed the following financial position: ASSETS LIABILITIES & STOCKHOLDER'S EQUITY Cash 28,000 Accounts Payable 14,400 Non-Cash Assets 36,000 Loan Payable to A 4,000 A, Capital 8,000 B, Capital 16,000 C, Capital 21,600 Totals 64,000 Totals 64,000 It was also agreed that cash distribution be made at the end of each month provided there was sufficient cash for this purpose. Profit and loss ratio was 2:1:2 respectively. The liquidation transactions for the months of February, March and April were as Follows: Cash Proceeds BV of Assets Sold Liabilities paid Liquidation Expense Restricted Cash for future expenses February 8,000 12,000 12,000 2,400 1,600 March 12,800 16,000…
Partners Ong, Rodriguez, Pamittan and Reyes who share profits andlosses at 30%, 30%, 20% and 20%, respectively, decided to liquidate. Allpartnership assets are to be converted into cash. Before liquidation, thecondensed statement of financial position follows:Cash P100, 000 Liabilities P750, 000Other Assets 1, 800, 000 Rodriguez, Loan 60, 000Reyes, Loan 50, 000Ong, Capital 420, 000Rodriguez, Capital 315, 000Pamittan, Capital 205, 000Reyes, Capital 100, 000Total P1, 900,000P1, 900,000The non-cash assets realized P800, 000, resulting to a loss of P1, 000,000. All the partners are solvent, and can contribute any additional cash tocover any deficiency. In the process of liquidation, deficiencies will occur andwill require additional investment as follows:a. Pamittan at P7, 500b. Reyes at P50, 000c. Reyes and Pamittan for P50, 000 and P7, 500, respectivelyd. None

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Partners A,B and C decided to liquidate their business on January 31, 2021 and showed the
following financial position:

ASSETS			LIABILITIES & STOCKHOLDER'S EQUITY

Cash	28,000			Accounts Payable	14,400
Non-Cash Assets	36,000			Loan Payable to A	4,000
				A, Capital	8,000
				B, Capital	16,000
				C, Capital	21,600
Totals	64,000			Totals	64,000

It was also agreed that cash distribution be made at the end of each month
provided there was sufficient cash for this purpose.
Profit and loss ratio was 2:1:2 respectively.

The liquidation transactions for the months of February, March and April were
as Follows:
	Cash Proceeds	BV of Assets Sold	Liabilities paid	Liquidation Expense	Restricted Cash for future expenses
February	8,000	12,000	12,000	2,400	1,600
March	12,800	16,000	2,400	1,600	800
April	6,400	8,000		800

Note: The statement of liquidation is supported by schedule of safe payments.
Required: Prepare a liquidation Table and schedule of safe payments

The statement of liquidation is supported by schedule of safe payments. Required: Prepare a liquidation Table and schedule of safe payments