Exercise 12-08 (Video)

Crane Company at December 31 has cash $20,700, noncash assets $108,000, liabilities $52,900, and the following capital balances: Floyd $46,600and DeWitt $29,200. The firm is liquidated, and $118,000in cash is received for the noncash assets. Floyd and DeWitt income ratios are60% and40%, respectively.

Prepare schedule of cash payments.(If an amount reduces the account balance then enter with a negative sign preceding the number e.g. -15,000 or parenthesis e.g. (15,000).)

CRANE COMPANY

Schedule of Cash Payments

Item

Cash

+Noncash Assets

=Liabilities

+Floyd, Capital

+DeWitt, Capital

Balances before liquidation$20,700

$108,000

$52,900

$46,600

$29,200

Sale of noncash assets and allocation of gain

New balances

Pay liabilities

New balances

Cash distribution to partners

Final balances$

$

$

$

$