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Computation

This document contains three computations related to accounting: 1) A statement of cash flows is prepared showing net cash provided by operating, investing, and financing activities. Net cash used was $1,000. 2) A partnership liquidation statement is prepared showing the sale of assets, distribution of gains, payment of liabilities, and distribution of remaining cash to partners. 3) A corporation's cash dividend distribution is computed for cumulative, non-participating preference shares and non-cumulative, participating shares. Dividends of $6 per share and $3 per share were distributed.

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21 views5 pages

Computation

This document contains three computations related to accounting: 1) A statement of cash flows is prepared showing net cash provided by operating, investing, and financing activities. Net cash used was $1,000. 2) A partnership liquidation statement is prepared showing the sale of assets, distribution of gains, payment of liabilities, and distribution of remaining cash to partners. 3) A corporation's cash dividend distribution is computed for cumulative, non-participating preference shares and non-cumulative, participating shares. Dividends of $6 per share and $3 per share were distributed.

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gzyville630
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We take content rights seriously. If you suspect this is your content, claim it here.
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COMPUTATION

A. PREPARE STATEMENT OF CASH FLOWS


Net Income 35,000
Depreciation (1) 15,000
Decrease in Accounts (2) 2,000
Receivable
Increase in Inventory (3) -10,000
Increase in Accounts (4) 4,000
Payable - trade
Net Cash Provided by (5) 46,000
Operating Activities

Increase in Equipment
Construction of Building
Sale of PPE
Net Cash Provided by (6) -48,000
Investing Activities

Acquisition of Long- (7) 10,000


Term Liability
Payment of Cash (8) -9,000
Dividends
Net Cash Provided by (9) 1,000
Financing Activities

Increase in Cash & Cash (10) -1,000


Equivalent
Cash & Cash Equivalent, 6,000
beginning
Cash & Cash 5,000
Equivalent, ending
B. PREPARE PARTNERSHIP LIQUIDATION STATEMENT

1. Sale of all non-cash assets


Cash P150,000
Non-cash Assets P120,000
Gain on Realization 30,000

2. Distribution of gain on realization to the partners


Uno: P30,000 * 2/3 = P20,000
Dos: P30,000 * 1/3 = P10,000

Gain on Realization P30,000


Uno, Capital P20,000
Dos, Capital 10,000

3. Payment of the liabilities


Liabilities P125,000
Cash P125,000

4. Distribution of cash to the partners


Uno, Capital P35,000
Dos, Capital 5,000
Cash P40,00

Uno-Dos Partnership
Statement of Liquidation
December 31, 2023

DEBIT CREDIT

ACTIVITIES CASH REC NCA AP LOANS UNO, DOS,


FROM TO DOS CAPITAL CAPITAL
UNO
Balances before 15,000 10,000 120,000 125,000 10,000 15,000 -5,000
Realization
Asset (1)150,00 -120,000 (2) 20,000 (3) 10,000
Realization 0
Balances (4)165,00 10,000 0 125,00 10,000 (5) 35,000 (6) 5,000
0
Payment of -125,000 -125,000
Liabs
Balances (7) 40,000 10,000 0 0 10,000 35,000 5,000
Payment of -10,000 -10,000
Loan
Balances (8) 30,000 10,000 0 0 0 35,000 5,000
Right of Offset -10,000 -10,000
Balances 30,000 0 0 0 0 25,000 5,000
Payment of -30,000 (9) -25,000 (10) -5,000
Partner
Balances 0 0 0 0 0 0 0
C. PREPARE CORPORATION’S CASH DIVIDENDS DISTRIBUTION

1. CUMULATIVE AND NON-PARTICIPATING


PREFERENCE ORDINARY TOTAL
In arrears 2 years, Preference (1) 80,000 80,000
Shares, 10% P20 par, 20,000
shares
Current years, Preference Shares, (2) 40,000 40,000
10% P20 par, 20,000 shares
Balance to Ordinary Shares (3) 180,000 180,000
Total dividends distributed 120,000 180,000 300,000
Divide by outstanding shares 20,000 60,000
Dividend per share (4) 6 (5) 3

2. NONCUMULATIVE AND PARTICIPATING


PARTICIPATION DISTRIB
FACTOR
Preference Shares, 400,000 40%
P20 par, 20,000
shares
Ordinary Shares, 600,000 60%
P10 par, 60,000
shares
Total 1,000,000

PREFERENCE ORDINARY TOTAL


Basic at par value:
10% Preference 40,000 40,000
shares, P20 par,
20,000
outstanding
Ordinary shares, (1) 60,000 60,000
P10 par, 60,000
issued and
outstanding
Balance for
Participation:
Preference (2) 80,000 80,000
(200,000 x 40%)
Ordinary (200,000 (3) 120,000 120,000
x 60%)
Total dividends 120,000 180,000 300,000
distributed
Divide by 20,000 60,000
outstanding shares
Dividend per (4) 6 (5) 3
share

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