Question
Sedgwick Company at December 31 has cash $24,000, noncash assets $105,000, liabilities $50,200, and the following capital balance : Floyd $43,200 and Dewitt $35,600. The
Sedgwick Company at December 31 has cash $24,000, noncash assets $105,000, liabilities $50,200, and the following capital balance : Floyd $43,200 and Dewitt $35,600. The firm is liquidated, and $117,000 in cash is received for the noncash assets. Floyd and Dewitt income rations are 60% and 40% respectively.
Sedgwick Company
Schedule of cash payment
Items cash + Noncash assets= liabilities + Floyd, Capital+ Dewitt, Capital
balance before liquidation $24,000 $105,000 $50,200 $43,200 $35,600
sales of noncash asssets and allocation gain --------- ------------------- ------------- ------------ ---------------------------
new balances --------------- ---------------------- ------------------ ------------------ ------------------------------
pay liabilities ----------- ------------------------ ------------------------- ------------- --------------------------------
new balances ----------------- ---------------------------- ------------------------ ------------- ------------------
cash distribution to partners --------------- --------------------- ------------------- ------------------ -------------------
final balances --------------- --------------------------------- -------------------- --------------- ------------------
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started