USA Closing a subsidiary


AGH the CPA

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assume the following:

cash in bank 50,000
accounts receivable 5,000
prepaid expenses 4,000
fixed assets 1,000

total assets 60,000

accounts payable 200,000
Stock 100,000
retained earnings -150,000
net income -90,000

total liabilities and equity 60,000

I have the following:
get paid for AR
DR cash 5k
CR AR 5k

recoup prepaid
DR cash 4k
CR prepaid 4k

sell assets at loss for $500
DR cash $500
DR loss $500
CR asset $1000

cash balance is 59,500.

Investors are willing to put in $ to clear payables so assume further investment of 140,500
DR cash 140,500
CR stock/PIC 140,500

clear payables
DR AP 200,000
CR cash 200,000


ASSETS ZERO

STOCK 240,500

RE (150,000)

NI (90,500)

STOCK & LIABILITIES ZERO

Now what??
 
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