1. Mary, Helga, and Luz are partners who share profits and losses in the ratio of 422. respectively. The partners decide to liquidate and gave you the following balances: Cash P400,000 Accounts Payable P300,000 Accounts Receivables 200,000 Notes Payable 400,000 Inventories 800,000 Mary, Capital 700,000 Equipment 700,000 Helga, Capital 400.000 Accumulated Depreciation (100,000) Luz, Capital 200,000 a) Accounts Receivable were sold for P175,000 b) Inventories were sold for P820.5.00 c) Equipment were sold for P550,000 and d) Liquidation expenses of P12,000 were paid Direction: a) Use the following table in support of the liquidation process. The cash balance after the payment of liabilities should reconcile with the capital balances Capital Balances Cash Mary Helga Luz Balances before liquidation Sale of receivables at a loss Sale of inventories at a gain Sale of equipment at a loss Liquidation expenses paid Liabilities paid Distribution to partners b) Journalize a) each sale, b) liquidation expenses paid, c) liabilities paid, and d) cash paid to partners. 2. Using the data in Exercise 1 but assume, instead, that all the non-cash assets were sold in lump sum for half of their book values to Venture Company less liquidation expenses of P12,000. All partners are solvent. Direction: a) Prepare a statement of liquidation and b) Journalize a) sale of the other assets at a loss, b) payment of liquidation expenses. c) payment of liabilities, d) deficiency, if any, absorbed by other partner(s), and e) distribution of remaining cash to appropriate partner(s). 3. Using the data in Exercise I but assume, instead, that all the non-cash assets were sold for P760,000 less P8,000 liquidation expenses. Assume all partners are insolvent. a) Prepare a statement of liquidation b) Journalize a) sale of the other assets and distribution of loss including the liquidation expenses, b) payment of liabilities, e) deficiency, if any, absorbed by other partner(s) and d) distribution of remaining cash to appropriate partner(s)