Festus, capital

Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter23: Accounting For Partnerships
Section: Chapter Questions
Problem 3AP
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The partnership of Dolla, Earl, and Festus was dissolved on January 1, 2014. The balance sheet at that date is shown below:

 

Cash                                   $ 12,000                              Liabilities                           $ 36,000

Other assets                         70,000                              Loan from Dolla                    1,000

Loan to Festus                       8,000                              Dolla, capital (20%)              6,000

                                                                                          Earl, capital (30%)               16,000

                                                                                          Festus, capital (50%)          31,000

Total assets                       $ 90,000                              Total liab./equity              $ 90,000

 

In January, $34,000 of the accounts receivable was collected, and an additional $6,000 was determined to be uncollectible. The remaining receivables are still expected to be collected.

 

Required:

Determine how the available cash on January 31, 2014 will be distributed. (Use a safe payments schedule.)

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