The statement of financial position of the partnership of John, Jay, and Joshua on December 31, 20x0, when the partners decide to liquidate follows:

Assets

CashP150,000

Other Assets450,000

Total AssetsP600,000

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Liabilities and Capital

LiabilitiesP225,000

John, Loan35,000

John, Capital (40%)114,000

Jay, Loan25,000

Jay, Capital (40%)87,000

Joshua, Loan30,000

Joshua, Capital(20%)84,000

Total Liabilities and CapitalP600,000

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Assets are sold, and cash is distributed to partners in monthly installments during the course of liquidation as follows:

January 20x1:

Other assets with a carrying amount of P150,000 were sold for P160,000

Liquidation expenses of P2,000 were paid

Estimated future liquidation expenses totaled P1,000

Cash retained for potential unrecorded liabilities and anticipated expenses is P10,000

February 20x1:

The remaining other assets were sold for 290,000

Liquidation expenses paid were P3,000

The remaining liabilities were paid

Questions/Problems:

1.Prepare a statement of liquidation to summarize the course of liquidation.Prepare a safepayment schedule in support of the distribution of cash. (Round to the nearest peso)

2.Prepare the journal entries to record the liquidation.