The following balances are found in the books of THORNADO Partnership as of July 1, 2016...

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The following balances are found in the books of THORNADO Partnership as of July 1, 2016 when the partners decide to sell the assets and liquidate the partnership. Personal assets and liabilities of the partners are as follows: Assets P 240,000 500,000 450,000 Accounts Payable Donny Loan Thor, Capital Nap. Capital Donny, Capital August September October REQUIRED: Thor Nap Donny Donny was instructed to act as partner in charge of the liquidation. It was agreed that distribution of cash to the partners would be made on the last day of each month during the liquidation period, provided there was sufficient cash on hand for this purpose. The results of liquidation are summarized below. Cash Collected Book Value P 270,000 200,000 100,000 P 420,000 180,000 270,00 P 420,000 50,000 80,000 180,000 140,000 Accounts Payable Paid P 220,000 150,000 40,000 Liabilities P 230,000 600,000 420,000 P/L ratio 1 1 2 Liquidation Expenses Paid P 20,000 10,000 10,000 Cash w/held for future expenses P 5,000 1. Statement of Liquidation with supporting schedule of safe payments. 2. Prepare a cash priority program, showing how cash will be distributed among the partners by installments as it becomes available. 3. Using the program above, prepare schedules summarizing the payments to be made to partners at the end of each month. Indicate what part of the payments are to be applied against loan balances and against capital balances. The following balances are found in the books of THORNADO Partnership as of July 1, 2016 when the partners decide to sell the assets and liquidate the partnership. Personal assets and liabilities of the partners are as follows: Assets P 240,000 500,000 450,000 Accounts Payable Donny Loan Thor, Capital Nap. Capital Donny, Capital August September October REQUIRED: Thor Nap Donny Donny was instructed to act as partner in charge of the liquidation. It was agreed that distribution of cash to the partners would be made on the last day of each month during the liquidation period, provided there was sufficient cash on hand for this purpose. The results of liquidation are summarized below. Cash Collected Book Value P 270,000 200,000 100,000 P 420,000 180,000 270,00 P 420,000 50,000 80,000 180,000 140,000 Accounts Payable Paid P 220,000 150,000 40,000 Liabilities P 230,000 600,000 420,000 P/L ratio 1 1 2 Liquidation Expenses Paid P 20,000 10,000 10,000 Cash w/held for future expenses P 5,000 1. Statement of Liquidation with supporting schedule of safe payments. 2. Prepare a cash priority program, showing how cash will be distributed among the partners by installments as it becomes available. 3. Using the program above, prepare schedules summarizing the payments to be made to partners at the end of each month. Indicate what part of the payments are to be applied against loan balances and against capital balances.

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1 Statement of Liquidation with Supporting Schedule of Safe Payments Date Cash Collected Liabilities ... View the full answer