If Tom contributes $70,000 to the partnership to provide cash to pay the creditors, what amount of Wes’s $90,000 partnership equity would appear to be recoverable?

a $90,000 b $81,000 c $79,000 d None of the above p R O B L E M S P 17-1 Safe Payment Fahran, Boosah, and Delbar agree to liquidate their partnership as soon as possible, starting from January 31, 2014. They agree to retain $50,000 cash and distribute the rest at the end of each month. The trial balance at January 31, 2014, is as follows:

Partnership Liquidation 587 Debit Credit Cash $350,000 Accounts receivable—net 100,000 Inventory 275,000 Supplies 80,000 Equipment—net 500,000 Building—net 1,000,000 Land 725,000 Loan to Boosah 120,000 Accounts payable $270,000 Loan from Delbar 145,000 Fahran capital (30%) 675,000 Boosah capital (20%) 815,000 Delbar capital (50%) 1,245,000 REQuIRED 1. Prepare a schedule of safe payments to distribute any cash available on January 31, 2014.

2. Prepare the necessary journal entries for distributing the cash.