Ex 2: XYZ Company at December 31 has cash $20,000, noncash assets $100,000, liabilities $55,000,...
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Accounting
Ex 2:
XYZ Company at December 31 has cash $20,000, noncash assets $100,000, liabilities $55,000, and the following capital balances: Sara $45,000 and Ahmed $20,000. The firm is liquidated, and $120,000 in cash is received for the noncash assets. Sara and Ahmed income ratios are 60% and 40%, respectively.
Ex 2: XYZ Company at December 31 has cash $20,000, noncash assets $100.000, liabilities $55,000, and the following capital balances: Sara $45,000 and Ahmed 520,000. The firm is liquidated, and $120,000 in cash is received for the noncash assets. Sara and Ahmed Income ratios are 609 and 40%, respectively. MANAMA COMPANY Schedule of Cash Payments Noncash Sara Ahmed Cash Assets Liabilities - Capital - Capital (B.) Balances before Liq. Liquidation $ 40,000 5200,000 $110,000 $ 90.000 540,000 Sale of noncash assets and allocation of losses_240.000 24.000 16.000 New balances 280,000 110,000 114.000 56,000 Pay liabilities (110.000) New balances 170,000 114.000 56.000 Cash distribution 5170.000 (5114.000 556.000 Final bal 0 0
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