Professional Documents
Culture Documents
1.)
a. Collected on account receivables 130,000
b. Sale of inventory 200,000
c. Sale of equipment 590,000
d. Actual liquidation expenses -5,000
Net cash proceeds 915,000
Less: Carrying amount of all non-cash assets -1,300,000
Total Loss -385,000
ABC Co.
Statement of Liquidation
December 31,2020
ASSETS
Cash Non-cash
Balances Before Liquidation 40,000 13,000,000
Conversion of N0n-cash assets and
Distribution of Loss 915,000 -1,300,000
Totals 955,000 0
Payments to Outside Creditors -100,000
Totals 855,000
Payment to Inside Creditor -50,000
Totals 805,000
Payment to Partners -805,000
Totals 0
EQUITY
A. Capital (50%) B. Capital (40%)
600,000 420,000
-192,500 -154,000
407,500 266,000
407,500 266,000
407,500 266,000
-407,500 -266,000
0 0
2.)
a. Loss on collection of accounts receivable
[60,000-(200,000 x 80%)] -100,000
b. Loss on sale of inventory
[(40,000-(300,000 x 90%)] -230,000
c. Loss on sale of equipment
(220,000-600,000) -380,000
d. Actual Liquidation Expenses -2,000
Actual loss on realization -712,000
ABC Co.
Safe Payment Schedule
December 1,2020
A (50%) B (40%)
Payable to A 50,000
Capital balances before liquidation 600,000 420,000
Total 600,000 470,000
Allocation of loss on realization -356,000 -284,800
Total 244,000 185,200
Allocation of maximum loss possible -141,500 -113,200
1st installment payment to partners 102,500 72,000
ABC Co.
Statement of Liquidation
December 1,2020
ASSETS
Cash Non-cash
Balances before liquidation 40,000 1,300,000
Realization of assets and distribution of loss 318,000 -1,030,000
Balances before liquidation 358,000 270,000
Payment to outside creditors -100,000
Balances before liquidation 258,000
Payment to partners - 1st installment -245,000
Balances - December 1,2020 13,000
244,000 135,200
-102,500 -72,000
141,500 63,200
ABC Co.
tatement of Liquidation
December 31,2020
LIABILITIES
Accounts payable Payable to A
100,000 50,000
100,000 50,000
-100,000
0 50,000
-50,000
0
TY
C, Capital (10%)
170,000
-38,500
131,500
131,500
131,500
-131,500
0
ABC Co.
Safe Payment Schedule
December 1,2020
C (10%) Total
50,000
170,000 1,190,000
170,000 1,240,000
-71,200 -712,000
98,800 528,000
-28,300 -283,000
70,500 245,000
ABC Co.
tatement of Liquidation
December 1,2020
LIABILITIES
Accounts payable Payable to A
100,000 50,000
100,000 50,000
0
50,000
-50,000
0
C, Capital (10%)
170,000
-71,200
98,800
98,800
-70,500
28,300