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When selling assets, businesses may not seek full value for non-cash assets such as buildings, land, equipment, vehicles.
Getting the best price may result in simply obtaining enough cash to pay off all liabilities.
If preferred, an accountant can pay these items off, as long as the company has available cash.
The entry will debit the liability account and credit cash as the company pays off the liability.
31.80Auto Expense 2920.55Professional 790.00Uniforms 194.75Taxes &License 174.93Meals & Entert 767.53Travel 25.00R&M 553.08Rent 2021.00Office Expense 281.68Deprec. If you looking for Breakeven point in units, Breakeven = Total Fixed Costs / (Selling Price per Unit - Variable Cost per Unit) Let say you purchased inventory from supplier for per unit and you are selling them for per unit and that your total operating expenses (other than purchases) cost ,000 monthly. So the break even formula would be Total fixed cost / (total commission - variable cost)? After completely closing a business, the law requires that you keep all business records for up to seven years, depending on where you operated.Although closing a business may not be easy, think of it as a valuable learning curve to help you navigate life's next adventure. In addition to years of corporate accounting experience, he teaches online accounting courses for two universities.These individuals rarely receive any money when a company closes its doors.
A distribution to repay shareholders will debit shareholders' equity and credit cash, and then shareholders return their shares.
331, a liquidating distribution is considered to be full payment in exchange for the shareholder’s stock, rather than a dividend distribution, to the extent of the corporation’s earnings and profits (E&P).