Liquidation Basis of Accounting: Working Backwards Guadeloupe Company is in the process of liquidating, and is using
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Question:
Liquidation Basis of Accounting: Working Backwards
Guadeloupe Company is in the process of liquidating, and is using the liquidation basis of accounting. Its beginning and ending statements of net assets in liquidation and its statement of changes in net assets in liquidation for the three months ending April are as follows:
Guadeloupe Company
Statement of Net Assets in Liquidation
February April
Assets
Cash $ $
Accounts receivable
Inventory
Property
Total assets
Liabilities
Accounts payable
Accrued compensation
Accrued liquidation costs
Total liabilities
Net assets $ $
Guadeloupe Company
Statement of Changes in Net Assets in Liquidation
For Three Months Ending April
Beginning net assets $
Remeasurement of assets
Receivables
Inventory
Property
Remeasurement of liabilities
Accrued compensation
Accrued liquidation costs
Ending net assets $
No new assets or liabilities were discovered during this period, and there was no remeasurement of accounts payable.
Required:
Prepare a schedule of cash received from the liquidation of assets and cash disbursed for payment of liabilities during the three months ending April Use a negative to indicate items that reduce cash.
Guadeloupe Company
Schedule of Cash Receipts and Disbursements
For the Three Months Ended April
Related Book For
Intermediate Accounting
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
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