Subject: Installment Liquidation

On Jan 31,20xx, the partners Val, Nava and Pam authorized the liquidation of their partnership. the statement of financial position is as follows

Assets Cash 10,000 Loans Receivable Nav 50,000 Other Assets (net) -240,000 Total assets: 300,000 Liabilities & Partners Capital Accounts Payable- trade 90,000

Loan Payable Val 60,000 Val, Capital 140,000 Nava, Capital (70,000) Pam, Capital 80,000 Total Liabilities and Partners Capital: 300,000

Additional Information for 20xx

The partners profit and loss sharing ratio was Val, 40%, Nava 40%, and Pam 20%

On Feb. 1, non-cash assets with a book value of 180,000 realized 140,000, and all available cash was paid to creditors and to partners.

On Feb.4, non-cash assets with a book value of 60,000 realized 50,000, and that amount was paid to partners.

On feb.5, Nava who was almost insolvent paid 30,000 on the loan from the partnership. Val and Pam agreed that the partnership would receive no more cash from Nav, and they instructed the accountant to close the partnerships accounting records.

Require:

Prepare the cash priority program

Prepare the journal entries