The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: Cash . . . . . . . . . . . . . . . . . . . $ 36,000 Liabilities . . . . . . . . . . . . . .. . $50,000Noncash assets . . . . . . . . . 204,000 Drysdale, loan . . . . . . . . . . . 10,000Drysdale, capital (50%) . .. . 70,000Koufax, capital (30%) . . . . . 60,000Marichal, capital (20%) . . . 50,000 a. Liquidation expenses are estimated to be $15,000. Prepare a predistribution schedule to guide the distribution of cash.b. Assume that assets costing $74,000 are sold for $60,000. How is the available cash to be divided?
The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: Cash . . . . . . . . . . . . . . . . . . . $ 36,000 Liabilities . . . . . . . . . . . . . .. . $50,000Noncash assets . . . . . . . . . 204,000 Drysdale, loan . . . . . . . . . . . 10,000Drysdale, capital (50%) . .. . 70,000Koufax, capital (30%) . . . . . 60,000Marichal, capital (20%) . . . 50,000 a. Liquidation expenses are estimated to be $15,000. Prepare a predistribution schedule to guide the distribution of cash.b. Assume that assets costing $74,000 are sold for $60,000. How is the available cash to be divided?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation:
Cash . . . . . . . . . . . . . . . . . . . $ 36,000 Liabilities . . . . . . . . . . . . . .. . $50,000
Noncash assets . . . . . . . . . 204,000 Drysdale, loan . . . . . . . . . . . 10,000
Drysdale, capital (50%) . .. . 70,000
Koufax, capital (30%) . . . . . 60,000
Marichal, capital (20%) . . . 50,000
a. Liquidation expenses are estimated to be $15,000. Prepare a predistribution schedule to guide
the distribution of cash.
b. Assume that assets costing $74,000 are sold for $60,000. How is the available cash to be divided?
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