Problem #1Lump-Sum Liquidation with Gain on RealizationAfter several years of operations, the partnership of Arenas, Dulay and Laurente is to beiquidated. After making the closing entries on June 30, 2016, the following accountsremained open:Account BalanceAccount TitleDebitCreditCashP 50,000Non-cash Assets2,350,000LiabilitiesP400,000900,000Arenas, CapitalDulay, CapitalLaurente, Capital500,000600,000The non-cash assets are sold for P2,650,000. 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 gain on realization to the partners.3. Payment of the liabilities.4. Distribution of cash to the partners. 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 TitleDebitCreditCashP 150,000Other Assets2,600,000LiabilitiesP 750,000400,000Miranda, CapitalLeon, Capital600,0001,000,000Estoque, CapitalThe 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.

"Since you have asked multiple questions, we will solve first question for you. If you want any…

After several years of operations, the partnership of Arenas, Dulay and Laurente is to be iquidated. After making the closing entries on June 30, 2016, the following accounts remained open: Account Balance Account Title Debit Credit Cash P 50,000 2,350,000 Non-cash Assets Liabilities P400,000 Arenas, Capital Dulay, Capital Laurente, Capital 900,000 500,000 600,000 The non-cash assets are sold for P2,650,000. Profits and losses are shared equally. Required: Prepare a statement of partnership liquidation and the 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. Distribution of cash to the partners.

After several years of operations, the partnership of Arenas, Dulay and Laurente is to be iquidated. After making the closing entries on June 30, 2016, the following accounts remained open: Account Balance Account Title Debit Credit Cash P 50,000 2,350,000 Non-cash Assets Liabilities P400,000 Arenas, Capital Dulay, Capital Laurente, Capital 900,000 500,000 600,000 The non-cash assets are sold for P2,650,000. Profits and losses are shared equally. Required: Prepare a statement of partnership liquidation and the 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. Distribution of cash to the partners.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Problem 1 Rajon and Rondo are partners with the following capital transactions during 2018: Rondo Rajon P135,000 cr Balance Jan 1 P140,000 cr February 28 P40,000 dr March 31 P60,000 cr April 30 P80,000 cr P50,000 dr. P70,000 cr June 30 August 31 September 30 P20,000 cr October 31 P20,000 dr The income summary account has a credit balance of P510,000 Required: Prepare a statement of profit distribution for each of the following independent profit-sharing agreements: a. In the average capital ratio b. Interest on average capital at 9%, salaries of 60,000 and P100,000 to Rajon and Rondo, respectively, a bonus to Rajon of 25% of Net income after interest, salaries and bonus, and the balance equally. c. Interest at 10% on the amount by which the ending capital balance exceeds the beginning balance and the balance equally. d. Salaries of P80,000 and P120,000 to Rajon and Rondo, respectively, a bonus to Rajon of 25% of net income after salaries but before bonus, and the balance equally.
Problem #2 Lump-Sum Liquidation with Loss on Realization After several years of operations, the partnership of Miranda, Leon and Estoque is to be liquidated. After making the closing entries on March 31, 2019 the following accounts remained open: Account Balance Credit Account Title Debit P 150,000 2,600,000 Cash Other Assets P 750,000 400,000 600,000 Liabilities Miranda, Capital Leon, Capital Estoque, 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 #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 #4 Admission by Investment of Assets Resulta and Magpantay are partners sharing profits on a 60:40 ratio. A statement of financial position prepared for the partners on April 1, 2019 follows: Cash P 480,000 Accounts Payable P 890,000 1,330,000 Accounts Receivable 920,000 1,650,000 Resulta, Capital Inventories Magpantay, Capital 1,080,000 Equipment P700,000 Less: Accumulated Depreciation 450,000 250,000 P3,300,000 Total Assets Total Liabilities & Capital P3,300,000 On this date, the partners agreed to admit Tria as a partner. The terms of the agreement are summarized below: Assets and liabilities are to be restated as follows: a. An allowance for possible uncollectibles of P45,000 is to be established. b. Inventories are to be restated at their present replacement value of P1,700,000. C. Accrued expenses of P40,000 are to be recognized. Resulta, Magpantay and Tria will divide profits in the ratio of 5:3:2. Capital balances of the partners after the formation of the new…
Prablam ABC Patnershp was formed in year 2021 aunt setore datrouton of prott and loss. the followng accounts appeared in the books of the panmership the end eof year 2021 A capital 31 5,000 1 75,000 TO1 1 115.000 B. capital 20 000 V1 30 90,000 60,000 C, capital V T 25 |01 100,000 Revenue and epense summary 240.00 X If profits ore divided os follous, whaot is the share of A?" a. An 8% interest is given to each partners' average capital. b. Partners A and 6 will receive P2,500 monthly salary while partners C will receive P3,000 monthly c. 10% bonus based on income after salaries, interest and bonus is given to partner A d. Residual income is divided equally.
Problem #16 Installment Liquidation: Schedule of Safe Payments The statement of financial position for Paraiso and Ligeralde Partnership on June 1, 2015 before liquidation is as follows: Assets Liabilities & Capital Cash P 50,000 P 200,000 225,000 Liabilities Other Assets 550,000 Paraiso, capital Ligeralde, capital Total Liabilities & Capital 175,000 Total Assets P 600,000 P 600,000 Partners Paraiso and Ligeralde share profits and losses 60:40, respectively. In June, assets with a book value of P220,000 were sold for P180,000, creditors were paid in full, and P20,000 was paid to partners. In July, assets with book value of P100,000 were sold for P120,000, liquidation expenses of P5,000 were paid and cash of P125,000 was paid to partners. In August, the remaining assets were sold for P225,000. Required: 1. How much cash should Ligeralde receive in June? 2. How much cash should Paraiso receive in July? 3. How much cash should Ligeralde and Paraiso receive in August?
Assigment 2. LUMP-SUM LIQUIDATION WITH LOSS ON REALIZATION Jo, Pat and Espie are partners in a marketing consultancy firm and share profits and losses in the ratio of are 35:35:30 respectively. They decided to liquidate their business on Dec. 31, 2020. The following is the condensed statement of financial position preapred prior liquidation. Account Title Account Balance Debit Credit Cash 250,000.00 Other Assets 3,650,000.00 Liabilities 1,325,000.00 Pat Loan 65,000.00 Espie Loan 75,000.00 Jo, Capital 825,000.00 Pat, Capital Espie, Capital 755,000.00 855,000.00 3,900,000.00 3,900,000.00 The Non Cash Assets are sold for 1,285,000. 00 Partners are personally solvent Prepare a statement of Liquidation and the entries for the liquidation transactions
X&Y are Partners Jan or Initial Capital 01 March 30 Addl. Capital June 30 withdrawal Agreements. Int. on Ave. cape 10% Salary allow, y, 200k 9, 100 Remainder X, 60% Y₁ 40%% Propit for the year $1,200,000. X $ 800.000 $400,000 100.000 50.000 Required. Compute the FF. I. Ave. Cap.oF 2. lust-on Ave. cap. X 3. Share on balapter Salaries & Int. X 4. Total Share X
Problem #16 Admission by Investment and Division of Profits. The condensed statement of financial position of Matuguinas and Sorima on Dec. 31, 2018, follows: Matuguinas and Sorima Statement of Financial Position December 31, 2017 Assets Current Assets P100,000 Plant Assets (net) 500,000 Total P600,000 Liabilities and Partner's Capital Liabilities P300,000 Matuguinas, Capital 200,000 Sorima, Capital 100,000 Total P600,000 Matuguinas and Sorima shared profits or losses 40% and 60%, respectively. On Jan. 2, 2019, Pateno was admitted to the partnership by investing the net assets of her highly profitable proprietorship. The partners agreed to the following current fair values of the ust identifiable net assets of Pateno's proprietorship: Current Assets P 70,000 Plant Assets 230,000 Total Assets P350,000 Less: Liabilities 200,000 Net Assets P100,000 Pateno's capital account was credited for P120,000. The partners agreed further that the current fair values of the net…
2:53 fabm2 me2.jpg Problem #2 Lump-Sum Liquidation with Loss on Realization 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 "Cash Other Assets P 150,000 2,600,000 Liabilities Miranda, Capital Leon, Capital Estoque, Capital P 750,000 400,000 600,000 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 The following are the capital accounts of the partners in the Marisol Stores on June 20, 2019: Capital Balance P/L Ratio Marisol P1,296,000 1/2 Nenita 864,000 2/5 Orang 540,000 1/10 On July 1, 2019, Pepita invest P510,480 in the business for a 1/6 interest in net assets and profits. Required: Two alternative solutions, in journal entry form, to record Pepita’s admission in the firm. Two alternative journal entries to record Pepita’s admission if instead of investing, she purchases a 1/6 interest ratably from all partners
SCORE: NAME: SECTION: PROFESSOR: Problem #19 Installment Liquidation: Cash Priority Program Credit Debit P 10,000 Loan Receivable-Esparaguera Loan Payable-Santiago Santiago, Capital Gorospe, Capital Esparaguera, Capital Ronzales, Capital P 20,000 50,000 25,000 70,000 50,000 Partnership liabilities totaled P80,000 on Sept. 25, 2019. The partners shared profits and losses and realization gains and losses as follows: Santiago, 20%; Gorospe, 25%; Esparaguera, 30%; and Ronzales, 25%. Required: Prepare the cash priority program.