Pina Company at December 31 has cash $47,000, noncash assets $206,000, liabilities $128,000, and the following capital
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Question:
Pina Company at December 31 has cash $47,000, noncash assets $206,000, liabilities $128,000, and the following capital balances: Hoffman $91,000 and Mena $34,000. The firm is liquidated, and $232,000 in cash is received for the noncash assets. Hoffman and Mena income ratios are 60% and 40%, respectively. (If an amount reduces the account balance then enter with a negative sign preceding the number e.g. -15,000 or parentheses e.g. (15,000).)
Prepare a schedule of cash payments.
PINACOMPANY Schedule of Cash Payments | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|
Item | Cash | + | Noncash Assets | = | Liabilities | + | Hoffman Capital | + | Mena Capital | |
Balances before liquidation | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | |||||
Sale of noncash assets and allocation of losses | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | |||||
New balances | enter a total amount for the first part | enter a total amount for the first part | enter a total amount for the first part | enter a total amount for the first part | enter a total amount for the first part | |||||
Pay liabilities | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | |||||
New balances | enter a total amount for the second part | enter a total amount for the second part | enter a total amount for the second part | enter a total amount for the second part | enter a total amount for the second part | |||||
Cash distribution | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | |||||
Final balances | $enter a total amount for this schedule | $enter a total amount for this schedule | $enter a total amount for this schedule |
Related Book For
Accounting Principles
ISBN: 978-0470534793
10th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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