The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: Cash $ 44,000 Liabilities $ 44,500 Noncash assets 244,000 Drysdale, loan 27,500 Drysdale, capital (50%) 82,000 Koufax, capital (30%) 72,000 Marichal, capital (20%) 62,000 a. Liquidation expenses are estimated to be $23,000. Prepare a predistribution schedule to guide the distribution of cash. b. Assume that assets costing $82,000 are sold for $64,000. How is the available cash to be divided?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation:
Cash
$ 44,000 Liabilities
$ 44,500
Noncash assets
244,000 Drysdale, loan
27,500
Drysdale, capital (50%)
82,000
Koufax, capital (30%)
72,000
Marichal, capital (20%)
62,000
a. Liquidation expenses are estimated to be $23,000. Prepare a predistribution schedule to guide the distribution of cash.
b. Assume that assets costing $82,000 are sold for $64,000. How is the available cash to be divided?
Transcribed Image Text:The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: Cash $ 44,000 Liabilities $ 44,500 Noncash assets 244,000 Drysdale, loan 27,500 Drysdale, capital (50%) 82,000 Koufax, capital (30%) 72,000 Marichal, capital (20%) 62,000 a. Liquidation expenses are estimated to be $23,000. Prepare a predistribution schedule to guide the distribution of cash. b. Assume that assets costing $82,000 are sold for $64,000. How is the available cash to be divided?
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