The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: Cash Noncash assets $ 37,000 209,000 Liabilities Drysdale, loan Drysdale, capital (50%) Koufax, capital (30%) Marichal, capital (20%) $ 49,000 12,500 71,500 61,500 51,500 a. Liquidation expenses are estimated to be $16,000. Prepare a predistribution schedule to guide the distribution of cash. b. Assume that assets costing $75,000 are sold for $60,500. How is the available cash to be divided?
The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: Cash Noncash assets $ 37,000 209,000 Liabilities Drysdale, loan Drysdale, capital (50%) Koufax, capital (30%) Marichal, capital (20%) $ 49,000 12,500 71,500 61,500 51,500 a. Liquidation expenses are estimated to be $16,000. Prepare a predistribution schedule to guide the distribution of cash. b. Assume that assets costing $75,000 are sold for $60,500. How is the available cash to be divided?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation:
Cash
Noncash assets
Req A1
a. Liquidation expenses are estimated to be $16,000. Prepare a predistribution schedule to guide the distribution of cash.
b. Assume that assets costing $75,000 are sold for $60,500. How is the available cash to be divided?
$ 37,000
209,000
Complete this question by entering your answers in the tabs below.
First
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Next
Liabilities
Drysdale, loan
Drysdale, capital (50%)
Koufax, capital (30%)
Marichal, capital (20%)
Reg A2
All remaining cash
Liquidation expenses are estimated to be $16,000. Prepare a predistribution schedule to guide the distribution of cash.
Req B
DRYSLADE, KOUFAX, AND MARICHAL
Distribution of Available Cash
$49,000
12.500
71,500
61,500
51,500
Liabilities
Liquidation expenses
%
%
%
%
%
%
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