PLEASE HELP ME AND YOU ARE ALL BRIGHT AND I NEED YOUR HELP FOR SOLVING THIS PROBLEM.
PROBLEM 1: CARE p’ship at December 31 had cash amounting to $20,000, noncash assets $100,000, liabilities $55,000, and the following capital balances: Cassandra $45,000 and Penelope $20,000. The firm is liquidated, and $120,000 in cash is received for the noncash assets. Cassandra and Penelope income ratios are 60% and 40%, respectively.
Requirements:
1.Prepare a cash distribution schedule
2.Prepare the entries to record:
a.The sale of noncash assets.
b.The allocation of the gain or loss on liquidation to the partners.
c.Payment of creditors.
d.Distribution of cash to the partners.
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