NAME: SECTION: Problem #21 Installment Liquidation PROFESSOR: On Jan. 31, 2019, the partners Valdez, Navarro and Pamittan authorized the liquidation of their partnership. The statement of financial position is as follows: Valdez, Navarro and Pamittan Statement of Financial Position January 31, 2019 Liabilities and Partners' Capital Assets P 10,000 Accounts Payable-Trade P.90,000 Cash Loan Receivable-Navarro Other Assets (net). 50,000 240,000 Loan Payable-Valdez 60,000 Valdez, Capital 140,000 Navarro, Capital (70,000) Pamittan, Capital 80,000 Total assets P300,000 Total Liabilities and Partners Capital P300,000 Additional information for 2019: a. The partners' profit and loss sharing ratio was Valdez, 40%; Navarro, 40%; and Pamittan, 20%. b. On Feb. 1, non-cash assets with a book value of P180,000 realized P140,000, and all available cash was paid to creditors and to partners. c. On Feb. 4, non-cash assets with a book value of P60,000 realized P50,000, and that amount was paid to partners. d. On Feb. 5, Navarro, who was almost insolvent, paid P30,000 on the loan from the partnership. Valdez and Pamittan agreed that the partnership would receive no more cash from Navarro, and they instructed the accountant to close the partnership's accounting records. Required: 1. Prepare the cash priority program. 2. Prepare the journal entries. 1