P1-5 Using Financial Reports: Applying the Accounting Equation to Liquidate a Company LO1-1 On June 1, 2021, Bland Corporation prepared a statement of financial position just prior to going out of business. The totals for the three main components showed the following: Assets (no cash) Liabilities Shareholders' equity Shortly thereafter, all of the assets were sold for cash. Required: 1. How would the statement of financial position appear immediately after the sale of the assets for cash for each of the following cases? (Enter any decreases to account balances with a minus sign.) Case A Case B Case C Case D Cash Received for the Assets $ $136,000 73,000 63,000 136,000 123,000 149,000 55,000 Balances Immediately after Sale Liabilities Assets Shareholders Equity
P1-5 Using Financial Reports: Applying the Accounting Equation to Liquidate a Company LO1-1 On June 1, 2021, Bland Corporation prepared a statement of financial position just prior to going out of business. The totals for the three main components showed the following: Assets (no cash) Liabilities Shareholders' equity Shortly thereafter, all of the assets were sold for cash. Required: 1. How would the statement of financial position appear immediately after the sale of the assets for cash for each of the following cases? (Enter any decreases to account balances with a minus sign.) Case A Case B Case C Case D Cash Received for the Assets $ $136,000 73,000 63,000 136,000 123,000 149,000 55,000 Balances Immediately after Sale Liabilities Assets Shareholders Equity
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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accounting
Transcribed Image Text:2. How should the cash be distributed in each separate case? (Hint: Creditors must be paid in full before owners receive any payment.)
Case A
Case B
Case C
Case D
To Creditors To Shareholders
Total
Transcribed Image Text:P1-5 Using Financial Reports: Applying the Accounting Equation to Liquidate a Company LO1-1
On June 1, 2021, Bland Corporation prepared a statement of financial position just prior to going out of business. The totals for the
three main components showed the following:
Assets (no cash)
Liabilities
Shareholders' equity
Shortly thereafter, all of the assets were sold for cash.
Required:
1. How would the statement of financial position appear immediately after the sale of the assets for cash for each of the following
cases? (Enter any decreases to account balances with a minus sign.)
Case A
Case B
Case C
Case D
Cash Received
for the Assets
$
$136,000
73,000
63,000
136,000
123,000
149,000
55,000
Balances Immediately after Sale
Liabilities
Assets
Shareholders
Equity
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