On December $31$m $3013$ The Candy Company has $$45,000$ in cash, noncash assets of $$120,000,$ liabilities of $$50,000.$ The capital balances of the two partners are Tootsie $$70,000$ and Reeses $$45,000.$ The firm is liquidated, and $$120,000$ is received for the noncash assets. Tootsie and Reeses income ratios are $70\%$ and $30\%,$ respectively.

Instructions: Develop a cash distribution schedule and show the journal entry for each step in the liquidation process.

Answer rating: 100% (QA)

Answers Cash Distribution Schedule 1 Settle liabilities Cash available 45000 Liabilities ... View the full answer