Question
The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation: Cash $ 36,000 Liabilities $ 50,000 Noncash assets 204,000 Drysdale,
The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation:
| Cash | $ | 36,000 | Liabilities | $ | 50,000 |
| Noncash assets | 204,000 | Drysdale, loan | 10,000 | ||
| Drysdale, capital (50%) | 70,000 | ||||
| Koufax, capital (30%) | 60,000 | ||||
| Marichal, capital (20%) | 50,000 | ||||
Liquidation expenses are estimated to be $15,000. Prepare a predistribution schedule to guide the distribution of cash.
Assume that assets costing $74,000 are sold for $60,000. How is the available cash to be divided?
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Auditing And Assurance Services
Authors: Louwers, Timothy Louwers
5th Edition
0078025443, 978-0078025440
