BU102 - Principles of Accounting II Name The following two problems must be returned by 11:45am or receive a deduction of 15 points. Good luck! Problem #1 (30 points) The MFP Partnership is to be liquidated when the ledger shows the following: Cash $ 50,000 Noncash Assets 200,000 Liabilities 50,000 Mossimo, Capital 75,000 Fandango, Capital 100,000 Plank, Capital 25,000 Mossimo, Fandango, and Plank's income ratios are 2:5:3, respectively Instructions Prepare separate entries (journal entries or T-accounts) to record the liquidation of the partnership assuming that the noncash assets are sold for $100,000 in cash. If a partner ends up with a deficiency assume that particular partner does not invest additional cash. If your computation results in a decimal then round it to the nearest dollar. Problem #2 (14 points) Prior to the distribution of cash to the partners, the accounts of ABC Company are: Cash $35,000 Adcock, Capital (Dr.) $5,000, Buster, Capital (Cr.) $25,000, and Cutter, Capital (Cr.) $15,000 They share income on a 5:3 2 basis. Set up T-accounts. Instructions Prepare entries to record (a) the absorption of Adcock's capital deficiency by the other partners and (b) the distribution of cash to the partners with credit balances